Although there are many mortgaged families with difficulties to make ends meet who see the assignment in payment as the end of their hardship, there are many voices who alert of its danger. Yesterday the Foundation of Finance Studies (FEF) warned that the assignment in payment has “harmful effects” on the payment culture and causes the appearance of individuals that, “although they are solvent”, they get rid of the debt by endorsing the financial institution the downfall of the housing prices.
The Foundation proposes the development of other alternatives such as developing in Spain the norms of second opportunity, that is, an insolvency law especially adapted to individuals which “provides a quick, cheap and reasonable solution to insolvency”. The Foundation stresses that the lack of information “could result in a hasty legal reform” with negative consequences. It also points out that the number of mortgage loans is not available, nor is the number of evictions. “It could happen that the social problem is not well marked out”, it indicates.
The FEF thinks that the legal reforms should never be applied “with retrospective effects, except those which provide a clear technical improvement”. This is why they stand for going ahead with the reform while taking into account the payment expectations of the mortgage deeds and modifying as well the procedural process, as well as shortening the periods for any foreclosure process.
(…) Another strong bet of the Foundation would be to take adequate social measures against evictions with the financial sector sharing the costs “in proportion to the individual responsibility in the problem”
The conclusions of the Foundation are based on the idea that the Spanish mortgage market is suitable and has been able to meet the strong demand of homes of the last few years.