Part of the problem is that mortgage laws in Spain are particularly harsh. People unable to make payments who are evicted still remain liable to repay huge amounts because the value of their home or apartment has plunged during the crisis. Banks either sell the homes for much less than the original mortgage value or can't unload them, so the mortgage holders end up either owing the difference or paying back the whole loan. Their wages can be attached by the banks.By comparison, most people in the United States who default give up their devalued homes to the banks and file for personal bankruptcy. That leaves their credit ruined but without continuing mortgage debt.
Spain Moves To Curb Evictions Of Most Vulnerable
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.