Regulatory Alerts2013-05-15
Law 1/2013, of May 14, on measures to strengthen protection for mortgage debtors, debt restructuring and social housing
The Spanish State issued Law 1/2013 to protect vulnerable mortgage debtors by suspending evictions for two years and capping default interest rates. The legislation modifies the Mortgage Law and Civil Procedure Act to prevent abusive clauses, facilitate extrajudicial sales, and allow debt forgiveness under specific conditions. It also mandates the creation of a social housing fund to rehouse families evicted due to mortgage defaults.
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