Repossesions Spain

Foreclosures in Spain

Since 2013 the Bank of Spain as part of its regulatory role has required Spanish Banks report on the breakdown of default activity and the final result of any judicial actions taken.

The data is to help assess the human impact and finacial impact on both Banks and borrowers.

Driven by much crtisism of how evictions were being handled and the suicide of a number of home owners prior to enforcement agencies removing them from their homes the numbers show a stark difference in how many defaulting loans are ending up with enforced evictions.

By far now the trend is toward only taking over unoccupied property or ones where the mortgage holder in Spain has agreed to hand back the keys in full payment of the debt.

Types of action taken by Banks in Spain

Only 25 evictions where law enforcements were involved took place in 2014.

In comparision to 2013 repossesions continued to rise as a percenatge of all mortgage holders, but far more went down the "Dacion en Pago" route. Dacion en Pagos whilst meaning you lose your home is a much more long term reasonable solution as you do not continue to carry a debt that the Banks can pursue until paid in full.

There has been a change in recent years to the approach of Banks in Spain for those who are not paying a loan on their primary residence with many Banks now having a no forced eviction rule.

Second home owners

Second home owners like non resident buyers in Spain who have a Spanish Mortgage are likely however to find the lenders much less inclined to go down an agreed foreclosure route so court cation on failure to pay and a debt outstanding at th end of it is more likley for this type of borrower.

Read the full article.- Mortgage reposession data for Spain 2014