Novelty in the New Mortgage Law, in the matter of evictions

The foreclosure or seizure in the new Mortgage Law which, as we have already commented recently, is being processed by Congress, will be from 12 unpaid instalments or 3% of the loaned capital, in the first half of the life of the loan, and will be extended to 15 instalments and 7% in the second half.

As agreed by the majority of the rapporteurs dealing with the new Mortgage Law, the early maturity clause of the loans has been extended from the 9 unpaid instalments (or 2% of the capital) contemplated in the bill approved under the mandate of the PP, to 12 instalments, and from the 12 in the second term of the loan (or 4% of the capital) to 15 instalments.

However, United We Can have regretted that the new law continues to include this clause which, they say, is abusive and contrary to European jurisprudence.

We can insist, that the percentage of non-payment to execute a property should be at least 10% of the capital, as is the case in Germany.

The new law will foreseeably include a first transitory provision that establishes as a general rule the non-retroactive application of its provisions when there are final judgments, which -according to Podemos- could lead to tens of thousands of foreclosures that were paralyzed being reactivated.