MEASURE TO STRENGTHEN PROTECTION MORTGAGE FACILITY IN SPAIN (PART II).

TO BORROWERS OF A

Litigation law firm in Spain. In a previous blog we talked about the first two chapters of the law 1/2013, of May 14, that entitles measures to strengthen the protection to mortgage debtors (see HERE). This Spanish law was published in the Official Gazette (Boletn official del Estado- B.O.E.) on 15.05.2013. Arcos and Lamers Asociados, your leading litigation law firm in Spain would like to go deeper this time in two remaining chapters of the above mentioned law that is mentioned measures that affects the Spanish Civil Law (Ley de enjuiciamiento civil) providing additional protection to the borrowers of a mortgage facility in Spain and implementing instructions to the government of Spain to take steps for the creation of a social fund for properties. Chapter 1 and 2: see HERE. Chapter 3: Amendments were made to the Civil Procedure Act (Ley de enjuiciamiento civil) in order to ensure that the execution of the mortgage facility, part of the foreclosure process, protects on a better way the interest of the borrower and with the intention to speed up the legal procedure in Spain. In particular, as a measure of great relevance, establishing the possibility that the process to recover remaining debt may entitle a donation of the same, providing the compliance with certain payment obligation, if after an execution of a mortgage facility there are still outstanding amounts due.

It lowers the guarantee that one should settled at the court in order to be part of an action from 20 to 5% of the valuation of the property. This law also doubles the time frame for the bidder of an auction to consign the price of the property among other improvements in the auction procedure. Chapter 4: Through this law, the Spanish Government is authorized to undertake the necessary measures to establish a social fund for properties to provide coverage to those who have been displaced from their primary residence for non-payment of a loan. Feel free to contact with this litigation law firm in Marbella, Arcos & Lamers Asociados for any legal and tax advise you may need. Are you a borrower of a loan in Spainand you have difficulties to fulfil your liabilities? Are you a lender of a mortgage in Spain and the borrower is not fulfilling his duties? Do you need Spanish legal and/or tax advise? Do not hesitate to contact the litigation lawyers of Arcos & Lamers Asociados for all your legal and tax advise you may need!

www.arcos-lamersasociados.com Marbella, 2013