European Court rules Spanish mortgage law is abusive

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This topic contains 12 replies, has 6 voices, and was last updated by Profile photo of Anonymous Anonymous 3 years, 8 months ago.

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  • #57350
    Profile photo of GarySFBCN
    GarySFBCN
    Participant

    The European Court of Justice on Thursday ruled that Spain’s mortgage law is incompatible with a European directive on abusive practices in consumer contracts, opening the door to more legal protection for households facing eviction from their family home.

    The ruling comes in response to a question posed by a Barcelona court in connection with the eviction of Moroccan immigrant Mohammed Aziz from his home in January 2011, after he failed to meet mortgage payments on a 138,000-euro loan granted to him by savings bank CatalunyaCaixa in July 2007.

    http://elpais.com/elpais/2013/03/14/inenglish/1363264199_406548.html

  • #116172
    Profile photo of katy
    katy
    Spectator

    Interesting. About a year ago there was a discussion re. Spanish banks chasing defaulters assets in the UK. A British Lawyer said it wouldn’t happen as British courts would declare abusive clauses in Spanish mortgages illegal.

  • #116177
    Profile photo of Anonymous
    Anonymous
    Participant

    Still haven’t sussed if this helps us or not…. My husband has said that we might as well just keep on paying and sell one day in the future, or else keep the place (arrghh!!!!!! 27 years paying nearly 250k). The case of trying to hand the keys back sounds like jumping through endless hoops with a guarantor.

    Why are we the only ones in a block of 20 flats still paying a mortgage….why are the other owners now banks…where are the owners who have left 150k mortgages to the banks? They won’t be able to find them (just check out the postal boxes in any block of flats, the demands from the banks go and sit amidst the freebie catalogues and junk mail (plus the electricity cut off info, water demands, IBI and rubbish…and car tax demands) until the community cleaner chucks it all in the bin.

    Again, I don’t feel that this law is going to help the most genuine cases….those who are too proud to admit defeat or poverty and just keep on trying to pay. Those who haven’t got another country to go back to? Those who have blatantly not paid in a euro in 3 years or more are probably going to benefit.

    The system is unfair but slowly moving forward I guess? Where is the poster who was going to reply about bankruptcy laws in Spain? I believe here in Ireland it’s 12 years so many property devs moved to the UK to have fewer years to wait? Is it really still ‘for life’ in Spain or is that also against European rules (as it should be? why can’t there be a european standard time?)

  • #116178
    Profile photo of angie
    angie
    Spectator

    It sounds like a nightmare for you itsme, extremely unfair to, and hope you find some way out without having to pay all of that sum back, have you spoken with a lawyer who can explain this anomaly between your situation and others in the block?

    You cannot possibly be alone though, I know of several large communities on golf courses on the CDS, whose mail boxes are stuffed to overflowing with what look like demands for monies owed, they litter the floor in many cases and are just ignored by owners who appear to have fled from their Se Vende apartments and town houses 🙄

  • #116179
    Profile photo of logan
    logan
    Participant

    I would just point out that Catalunya is not Spain. They are a politically devolved region and set their own laws. What applies there does not necessarily apply elsewhere.

    As ever in Spain it’s the interpretation by Madrid which matters. I think this judgement is a step forward but I have doubts the PP will accept it.

  • #116180
    Profile photo of Anonymous
    Anonymous
    Participant

    The PP and their friends the bankers… Our bank is Banco Mare Nostrum, half owned by the Gov. now.

  • #116183
    Profile photo of Anonymous
    Anonymous
    Participant

    Angie, the difference is that my husband is Spanish with his Dad as guarantor. Local small town people who respect those in authority and fear doing something ‘wrong’ so aren’t the types to lie or go offshore etc. Imagine the problems we’d have with the family if we ‘let’ the bank take his Dad’s property (can’t though as he has a mortgage), well if the bank took his Dads pension from Switzerland or suchlike. We’d be even more hated than we are for getting into the mess in the first place. God, for a stupid 5k credit card debt….

    We don’t want anything unfair, the market/economy means we can’t even sell for nothing, hand over the mortgage to someone else and walk away having paid out for years but earning zero profit. That would be fantastic… Rocker, maybe your estate agent friend could sell to scandies for us?

    There are other flats owned outright for over 20 years by the Mayors sister and other wealthy locals who just pay their 20 euros a month community and have the flats empty for years.

    There are 8 repos, all immigrants who probably went up to 4 years with only paying the electricity bills and nothing else. ie, they got the mortgages in 2006/2007. The last two are apparently midst being kicked out now but now they might be able to stay thanks to this law. Great, they will still make a load of mess taking their rubbish out, noise, use the lights and lift up and down and owe thousands to the community.

    If he was Morocan, Ecudorian, Romanian, Columbian, gypsy…..he would be able to go for years without paying 🙁

    We aren’t alone we know….

  • #116190
    Profile photo of Anonymous
    Anonymous
    Participant

    Sorry, it’sme, but my pal doesn’t cover the Vera area, which is where I believe your Spanish property is. I don’t suppose the bad Priors publicity has helped the area.

    Knowing a little of Spanish family life, you seem to be in an impossible situation, a son won’t go against his father and family pride is everything.

    If you could only let it out for the next five years it could solve your problem, but I daresay you’ve considered that possibility. Speaking to your lenders is the only other thing I can think of, if you’re stuck with it for the next 25 years, why not make it the next 45?

  • #116245
    Profile photo of Anonymous
    Anonymous
    Participant

    The bank would love us to again remortgage, at 5% minimum….plus 1000 euro fees, so it’s a no thanks from us.

    I’m thinking that we are going to have a real think about renting it out to pensioners who are looking for some sun. Fingers crossed they pay the rent and that we find people who will respect the property as well. Anyone else renting out property, how is it going?

  • #116246
    Profile photo of Anonymous
    Anonymous
    Participant

    ps, Happy St Patrick’s Day as well from sunny/rainy/sleety Ireland!

  • #116253
    Profile photo of Anonymous
    Anonymous
    Participant

    Happy St Patrick’s Day from the cold, windy and rainy Costa Blanca!

  • #116258
    Profile photo of logan
    logan
    Participant

    Weather again Rocker, Doh. 🙁 Rain is life giving, I love the rain and the cold. Makes you feel alive and smell the earth. Sun gives you skin cancer and wrinkles your face. 😯

  • #116269
    Profile photo of Anonymous
    Anonymous
    Participant

    @logan wrote:

    Weather again Rocker, Doh. 🙁 Rain is life giving, I love the rain and the cold. Makes you feel alive and smell the earth. Sun gives you skin cancer and wrinkles your face. 😯

    True enough, Logan. If you live in the cold and rain, you wouldn’t get skin cancer or wrinkles. You wouldn’t live long enough.

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