Home Repossessions Falling, Still Depressingly High

repossession foreclosure debt
Images_of_Money / Foter / CC BY-SA

Close to 20,000 families were evicted from their homes in foreclosure dramas in the first half of the year, show the latest figures from the Bank of Spain. This represents a big drop compared to the same period last year, but also shows that the crisis is still with us.

The Bank of Spain calculates that 19,565 families lost their homes during the first half of 2014, a drop of 26.3 per cent on the same period in 2013. These figures are published in a report on bank repossessions recently published by the Bank of Spain.

The figures show that 26,549 repossession processes were started up to June, representing 0.41 per cent of the total number of outstanding home loans, and 24.3 per cent less than in 2013.

The number of owners handing back properties in return for debt cancellation, a negotiated settlement called Dación en Pago in Spanish, fell by 35 per cent to 5,761, show the figures.

As regards writs of possession, these reached a total of 12,434 homes, 19.5 per cent less. In addition, 91.1 per cent of the properties were empty when the writ was issued, 90.2 per cent in the case of homes.

Bank of Spain statistics show that the number of repossessions requiring police intervention went down by 78 per cent during the first six months of the year, when there were 13 compared with 59 a year ago.

Information about home repossessions by banks was first published by the Bank of Spain in May 2013, with the aim of providing statistical data about a process that was previously almost unmonitored.

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