The Law to reinforce the protection of mortgage debtors, the restructuring of the debt and social rentals comes into force today after its publishing today in the Official State Gazzette.
The new norm does not include the universal and retroactive assignment in payment that had been demanded by the Popular Legislative Initiative (PLI), although it includes the suspension during two years of those evictions affecting citizens that comply with certain requirements as a “star” measure. Among them, that the income of the family cannot be higher than 19000 Euros per year.
On the other hand, the reform of the Mortgage Law also includes reductions of 35% for debtors that pay their installments in five years and of 20% if they do it in ten years. The norm also adapts the ruling of the European Court of Justice, which enables judges to stop an eviction if they detect abusive clauses, and increases from one to three the number of non payments necessary to start a foreclosure by banks.