Mort­gage fore­clo­sures drop by half in Ali­cante

Costa Blanca News (South Edition) - - News -

NOWA­DAYS Ali­cante banks are fil­ing fewer mort­gage fore­clo­sures when own­ers can no longer keep up with pay­ments.

This is mainly due to the im­proved eco­nomic sit­u­a­tion, which means there are less peo­ple de­fault­ing on their mort­gages, and also be­cause the Euro­pean Court of Jus­tice (ECJ) has still not ruled on the le­gal­ity of cer­tain as­pects re­gard­ing the Span­ish banks fore­clos­ing on mort­gages.

As a re­sult, mort­gage fore­clo­sures have dropped by 50 per cent in com­par­i­son to a year ago, bring­ing them to pre-eco­nomic cri­sis lev­els.

This is not only hap­pen­ing in Ali­cante prov­ince, but pretty much the same is oc­cur­ring through­out the rest of Spain.

The cur­rent eco­nomic sit­u­a­tion has al­lowed many mort­gage hold­ers to get jobs again, and they are catch­ing up with their back pay­ments.

The prop­erty mar­ket has re­cov­ered as well, to the point that bank clients with eco­nomic prob­lems are now able to sell their prop­er­ties, can­celling out their mort­gages. This was not an op­tion a few years go, as noth­ing was sell­ing.

The banks them­selves are also more in­clined to find other so­lu­tions be­fore fore­clos­ing on a mort­gage, as they want to avoid ac­cu­mu­lat­ing prop­er­ties in their pos­ses­sion.

The ma­jor rea­son for non­fore­clo­sures is def­i­nitely due to the wait on clar­i­fi­ca­tion from the ECJ.

Span­ish courts have cur­rently put the ma­jor­ity of re­pos­ses­sions on hold un­til the ECJ makes its rul­ing.

The ECJ orig­i­nally de­clared il­le­gal a clause that al­lowed banks to fore­close de­mand­ing the full amount owed, due to just one un­paid mort­gage in­stall­ment.

The ECJ ruled that for fore­clo­sure to hap­pen, one un­paid in­stall­ment had to be a sig­nif­i­cant amount of money.

The prob­lem is that they did not spec­ify what they con­sid­ered "a sig­nif­i­cant amount", so the Span­ish Supreme Court has re­quested clar­i­fi­ca­tion on the rul­ing. There­fore the ma­jor­ity of courts have halted fore­clo­sure pro­ceed­ings for the time be­ing.

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