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TheStreet Open House

Spain Moves To Curb Evictions Of Most Vulnerable

ALAN CLENDENNING

MADRID (AP) â¿¿ Spain approved a two-year suspension of evictions Thursday for some needy homeowners unable to pay their mortgages, but activists said the government failed to address the larger issue of how those who give up their homes may still remain indebted, sometimes for the rest of their lives.

Evictions have suddenly became one of the most sensitive topics in Spain's financial drama, and government officials acted less than a week after a Spanish woman facing eviction killed herself by jumping from an apartment balcony. They are trying reverse or at least delay a trend that has seen more than 371,000 mortgage eviction orders issued since the financial crisis hit the country in 2008.

The government, which is still preparing a broader overhaul of the country's mortgage and property laws, said it hoped to shield those most in need by suspending mortgage payments for mortgage holders with annual income of ⿬14,400 ($18,400) or less after taxes, or those with expired unemployment benefits.

"We must avoid families ending up in the street as a consequence of the crisis," Economy Minister Luis de Guindos told reporters. "What we're trying to do here is make sure nobody ends up without their house."

But the government tacked on conditions for those wanting an eviction suspension. To qualify, they must have more than three children, or have children under the age of three, or be elderly, or have disabled people in the household, or be single parents with two children, or be victims of domestic violence.

They can stay in their homes for two years without paying their mortgages, but it's unclear what will happen after that if they have still been unable to find work in a country where unemployment stands at 25 percent and is expected to rise significantly next year.

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