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
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