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Foreclosures on Primary Residences Rise 8.4% in Q2

1/10/2014 – Expansion

The total number of foreclosure processes run in the second quarter of 2014 showed 32.960 cases, meaning a 1.2% advance over the first quarter of the year and a 14% upsurge if compared to Q2 2013. Out of all, 9.611 lawsuits concerned principal residence, by 8.4% more than in the same period of time in 2013, reports the Spanish Statistics Office (abbreviated to the INE by its name in this language).

Furthermore, 2.756 homes belonging to natural persons were not their primary residences, an appreciation of 1.3%.

If the data analyzed as a whole, seizure of dwellings accounted for 58.1% of all foreclosures. Specifically, 29.1% corresponded to principal residences of natural persons, 20.6% to houses owned by legal persons and 8.4% were other dwellings of natural persons.

According to the INE, a mere 0.052% of all main homes found currently in Spain (18.331.400 units), started a foreclosure process between April and June this year.

The statistical report also reveals that the second quarter of 2014 witnessed 21.7% of the total foreclosures on homes resulting from mortgages signed in 2007, 17.6% approved in 2006 and 13.3% – in 2005. In the meantime, the approval period 2005-2008 concentrates 63.4% of the total of lawsuits pursued in the second quarter of 2014.

Foreclosures Geographically

Considering the foreclosures by Spanish regions, one may discover that great majority of them was initiated in Andalusia (7.703 cases), Catalonia (5.696) and Valencia (5.365). On the other end, there rank La Rioja (101), Navarre (199) and the Basque Country (201) with the smallest number of seized properties.

More than a half (58.1%) of all foreclosures run in Q2 2014 was assigned to dwellings. The lawsuits were most frequent in Catalonia (3.994), Andalusia (3.981) and the Valencian Community (3.342), while not so much in La Rioja (61), the Basque Country (94) or Navarre (118).

The official statistics department reminds that not all foreclosure processes eventuate in eviction of the property owners.

 

Original article: Expansión

Translation: AURA REE