Regulatory Alerts2024-03-06
Royal Decree-Law 6/2012 on Urgent Measures for the Protection of Indigent Mortgage Debtors
The Spanish Government issued Royal Decree-Law 6/2012 to protect indigent mortgage debtors by establishing an exclusion threshold based on income and vulnerability criteria. The decree mandates adherence to a Code of Good Practices that requires lenders to offer debt restructuring, interest rate moderation, and ultimately debt forgiveness through surrender of the property if other measures fail. Additionally, the law simplifies extrajudicial execution procedures, provides tax exemptions for novation deeds, and grants priority access to rental assistance for affected families.
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