LAW 1/2013, OF MAY 14, ON MEASURES TO REINFORCE PROTECTION OF MORTGAGORS, DEBT RESTRUCTURING AND SOCIAL RENT
Law 1/2013, of May 14, on measures to reinforce protection of mortgagors, debt restructuring and social rent was published in the Official State Gazette (BOE) on May 15, 2013 (“Law 1/2013”).
As with Royal Decree-Law 6/2012, of March 9, 2012, on urgent measures to protect mortgage debtors with no means of support (“RDL 6/2012”) –see Updates Corporate 11/2012–, or with Royal Decree-Law 27/2012, of November 15, 2012, on urgent measures to reinforce protection of mortgagors (“RDL 27/2012”) –see Updates Litigation and Arbitration 5/2012–, Law 1/2013 owes its existence to the exceptional circumstances currently being experienced in Spain due to the economic and financial crisis, as a result of which large numbers of those who took out mortgages to buy their principal residence are having extreme trouble meeting their mortgage payments.
Against this backdrop, the new law aims to complete and reinforce the legislation providing protection to mortgagors.
1. MORATORIUM ON THE EVICTION OF PERSONS BELONGING TO ESPECIALLY VULNERABLE GROUPS FROM THEIR PRINCIPAL RESIDENCE
1.1 Length of moratorium 1.2 Especially vulnerable groups 1.3 Economic circumstances 1.4 Evidence
2. MEASURES TO REFORM THE MORTGAGE MARKET
2.1 Principal residence 2.2 Late-payment interest 2.3 Nonjudicial foreclosure before a Notary 2.4 Appraisal companies 2.5 Repayment period 2.6 Elimination of right to increase collateral 2.7 Reinforced protection of mortgagors
3. AMENDMENTS TO THE FORECLOSURE PROCEEDING IN THE CIVIL PROCEDURE LAW
3.1 Discernment, at the Judge’s own initiative or at the request of the interested party, of the existence of unfair clauses in nonjudicial foreclosure processes 3.2 Costs in the foreclosure of a principal residence 3.3 Monetary foreclosure following foreclosure of a mortgage on a principal residence 3.4 Judicial auction 3.5 Allocation of payments 3.6 Amendments concerning mortgage foreclosures
4. AMENDMENTS TO RDL 6/2012 ON URGENT MEASURES TO PROTECT MORTGAGE DEBTORS WITH NO MEANS OF SUPPORT
4.1 Extension of scope of application 4.2 Maximum acquisition prices 4.3 Limitation on late-payment interest 4.4 Changes regarding the Code of Good Practice 4.5 Dation in payment (handing over the property in exchange for full satisfaction of the mortgage)
5. SOCIAL HOUSING PROGRAM
6. OTHER MEASURES
6.1 Amendment of Additional Provision number seven of the Pension Plans and Funds Regulation Law (final provision number one) 6.2 Exemption from the return of aid and tax benefits on protected housing