Cláusula Suelo – ECJ Press Release – 21 December 2016

COURT OF JUSTICE OF THE EUROPEAN UNION - PRESS RELEASE No. 144/16 - Luxembourg, 21 Dec 2016 CLAUSULA SUELO - MORTGAGE FLOOR CLAUSES Spanish case-law placing a temporal limitation on the effects of the invalidity of ‘floor clauses’ included in mortgage loan contracts in Spain is incompatible … [Read more...]

Spanish Banks Ordered to Repay Billions to Mortgage Borrowers

      CLAUSULA SUELO Spain's banking sector was hammered on Wednesday after the European Court of Justice ruled that lenders will need to reimburse mortgage customers who were overcharged on interest payments. The Spanish Supreme Court had previously ruled that the refunds should only apply … [Read more...]

The Building Insurance

According to Spanish Law (Law 2/1981 and Royal Decree 716/2009) on Mortgages, the only compulsory insurance when taking out a mortgage is the buildings insurance (damages insurance). According to provision 10.1 Royal Decree 716/2009: "The property on which the mortgage guarantee is constituted, … [Read more...]

Nullity of mortgages on illegal properties

A thinking after finding some excellent Court Decisions by Appeal Courts (Burgos is always great on protecting consumers rights of off plan buyers): Nullity of sale due to lack of consent by the buyer as he did not know or knew wrongly on important features of the property BRINGS ATTCHED the … [Read more...]

Are you paying a Spanish mortgage on a property with no licence?

Do you have a Spanish Mortgage on a Property with no licence? Valuators should have never given those properties the high value they did. Finances Department in Spain, passed a regulation in 2003 which established these checks as minimums: Article 7 Minimum Checks 1. To determine the … [Read more...]

Unjust Enrichment of Mortgage Creditor

All Magistrates of the Civil Courtrooms of Spain's Supreme Court have recently set legal doctrine in regards to unjust enrichment of a mortgage creditor when repossessing for a price much lower than the Valuation Value: Bank sells afterwards at a much higher price which brings an … [Read more...]

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 … [Read more...]

Mortgage Negotiation with Your Bank

Negotiating a reduction in your mortgage interest rate If you are experiencing difficulties with the payment of your mortgage instalments, some tips: Negotiate with the Bank: 1. Renegotiate the interest rate: specially if you have a floor clause (cláusula suelo) or any other abusive clause … [Read more...]

Mortgage Default Assistance

Are you struggling to pay a super-mortgage on a house for which the initial valuation was highly-inflated? Is the Bank not listening to you? Is your pension not enough to cover such an expensive mortgage? Do you feel that you cannot keep living this way? Is the situation destroying your … [Read more...]

Changes in communication of mortgage enforcements

The evolution of mortgage laws is subject to changes throughout history that show the matters legislator intended to insist on. It is assumed that the law reflects and protects social needs. First Mortgage Act of Spain was created in 1861 in order to attract foreign investment for state needs … [Read more...]

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