Why is it easier now than ever?
Different circumstances related to abusive clauses in Spanish Mortgage contracts and the revision of these by European Law, has created a never seen before scenario of protection for the mortgage holder.
Some of these circumstances are:
- – Mortgages with early maturity clauses: The judges in virtually all of Spain have stopped the mortgage enforcement procedures pending the decision of the European Court on the possible nullity of the clause of early maturity.
2.-Sale of mortgage debt to investment funds: The Bank or the investment fund, depending on how the transfer was made and if this was or was not communicated to the mortgage
holder, may find problems when processing a foreclosure proceeding so they are open to agreements with the debtors.
- – IRPH Clause: If the mortgage deed has this clause, the execution can be stopped and the debt needs to be settled by declaratory procedure: this is a long judicial procedure with no benefits to the bank.
4.- Domicile of the defendant: In spite of having indicated an address for communication with the client for mortgage purposes, if the mortgage holder has the prevention of
communicating to the Bank the change of address or address, or receives communications at another address, or can prove that the Bank knew the real address, or the Court did not exhaust the
means of search could consider the possibility of raising a nullity of proceedings in the foreclosure proceedings, for procedural infringement of the acts of communication that have caused
defenselessness.
It seems it is time for mortgage settlement in favor of debtors.
Brexit also helps to strengthen the position of mortgage debtors in Spain as EU rules for Court decision enforcement will stop being applicable.
Contact us for a FREE assessment on a possible claim regarding your mortgage in Spain
Maria Luisa Castro
