Decree for Mortgage Debtors

Some benefits of the recently approved Decree “Second Chance” for mortgage debtors:

– The Cabinet approves the extension for two years, until 2017, of the period by which people living in primary residences cannot be evicted by lender Banks.

In relation to collectives that are object of special protection as being especially vulnerable:

– The annual family income limit is increased to three times the Public Indicator of Multiple Income (IPREM). Until now it was calculated by multiplying by 12, now by 14, which makes a change from from annual EUR 19170.39 to 22365.42 Euros in 2015.

– It includes people over 60 years.

– It includes properties up to 300 thousand Euros. 250 thousands for dation (property back to the Bank).

– It eliminates the application of ground clauses for debtors included in this group of special vulnerability.

In addition, last February 25th the Supreme Court agreed that banks should repay the extra charged amounts for ground clauses since May 9th, 2013.

In our office we also offer support for mortgage deals to those mortgagors whose outstanding principal amount is inferior to a certain limit. This limit is imposed to Banks for not to repossess properties at lower price than it. So Banks are in many occasions interested on the deal.

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