This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Spain Moves To Curb Evictions Of Most Vulnerable

Odigie, who lost her factory job three years ago, doubted she will ever be able to pay the ⿬126,000 ($160,700) she still owes on her mortgage.

"Economically, Spain is getting worse by the day, no one is doing anything about it," she said. "There are no jobs."

While Spain's mortgage default rate is relatively small at 3 percent, it stood at less than 1 percent in 2007 before the crisis hit. Now friends and family who used to help their hurting relatives when they couldn't make mortgage payments increasingly can't do so anymore. The Bank of Spain says there are now ⿬19.1 billion ($24.4 billion) worth of mortgages under threat of not being paid, up from ⿬4.1 billion ($5.2 billion) in 2007.

Public anger over evictions has been compounded because the government is negotiating billion-dollar bailouts for the same banks that are repossessing homes. In recent weeks Spain's General Council of the Judiciary, a police union and opposition parties have all demanded new legislation to end the widespread evictions.

Spanish banks have warned against enacting measures that could prompt mortgage holders to default on purpose because they feel protected. De Guindos doubted this would happen, and he did not give an estimate of how many people would benefit from the eviction suspensions.

He noted that while some people are losing their homes, Spain has 700,000 empty houses whose owners cannot find buyers, chiefly because banks are reluctant to give loans and people are afraid of buying into real estate after the crash.

Deputy Prime Minister Soraya Saenz de Santamaria said the government also passed legislation that will provide cheap rentals for those who have already lost their homes.


Associated Press writers Oleg Cetinic and Marta Ramoneda contributed from Barcelona.

Copyright 2011 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,084.49 +33.74 0.20%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,830.47 +19.6820 0.41%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs