2023-05-03 09:20:00
Most citizens need to ask for a mortgage loan when they buy a house, since the savings are not usually enough to face that expense. However, given its long duration, changing financial situations may occur that make payment difficult of the monthly payments at some point.
Therefore, the Bank of Spain formulated a Code of Good Practices for the protection of mortgage debtors, which includes the measures that entities must apply to help families who have difficulties paying their mortgage.
The Bank of Spain has made public which are the financial entities that have voluntarily adhered to the Code, and that are obliged to apply the measures provided for in it. Likewise, he has recalled what are the conditions that citizens must comply to take advantage of the measures provided for in it. They are the following:
That your entity has adhered to the Code
That the guarantee of the mortgage loan is the habitual residence of the debtor
That the purchase price of the home does not exceed 300,000 euros
That certain economic requirements are met, which the standard calls the exclusion threshold
The mortgagor who meets the established requirements has the Code of Good Practices tool, expressly designed to deal with this difficult situation in mortgage payments.
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The Code includes three phases of acting. The first, aimed at procuring the viable restructuring of the mortgage debt, through the application to the loans or credits of a deficiency in the amortization of capital and a interest rate reduction for five years and the term extension full amortization. Secondly, if the previous restructuring is not sufficient, the entities may offer debtors a haircut on their entire debt.
Finally, if neither of the two previous measures manages to reduce the mortgage effort to assumable limits, they may request, and the entities must accept, the Settlement as a definitive means of liberating the debt. This consists of the delivery to the bank of the house that guarantees the loan, in exchange for canceling the outstanding debt. In the latter case, families may remain in their home for a period of two years, paying an affordable income.
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