Housing and Real Estate

We extend the embargo on the housing and mortgage problems for a while. The news that Jose Luis gave this morning has reassured many of the people: those who are unemployed or inactive are self-employed can now pay only half of their monthly mortgage and this for up to two years.

My purpose with this article is not “repeat” the news but rather to explain certain details of the aid that any interested person (ie, stop, with a mortgage) would like to find out. Let us, therefore, the most important points to consider:

- The mortgaged property is not exempt from the payment, what you do is continue part of the monthly mortgage.
- You can defer up to 500 euros per month.
- Comes into force from January 1, 2009.
- The support is guaranteed through ICO.

- Aid mechanism: The State shall, through the Official Credit Institute, the other half of the share of mortgage, the mortgaged property to be paid from January 1, 2011 with a maximum assessment of 10 years.

- To benefit from this aid your mortgage should not exceed 170,000 euros.

- Be entitled to this “mortgage assistance” employees out of work / unemployment and self-employed with family that will go out of business for lack of activity or income are reduced to 3 times the IPREM. Also contemplated in aid pensioners with dependents

What happens when the owner does not pay? It is normal that when you make the first non-payment of mortgage payments, the bank will contact the borrower because it can be a mistake or an oversight. If not, and the client continues to owe time you charge interest for late payment can also be borne by the guarantor. Where there is a real economic problem which hinders the payment of money by the owner, it is possible to extend the period for repayment of credit provided the bank and the holder agree. This would reduce the money to pay for each share but would increase the total because the longer it takes to repay the loan plus interest must be paid.

In the event that this is not possible, the bank initiated a lawsuit against the borrower and guarantors that, if accepted, could lead to the seizure of the mortgaged property or money, payroll, or both goods and property holder and the guarantor. Ultimately, these properties can be auctioned to cover the debt.

When the person who has endorsed the claim had been forced to deal with the payment of money due, is entitled to require the borrower the amount becoming a creditor of the holder of the loan. If for any reason, the debtor could not pay the amount asked the guarantor, it may require the sale of the mortgaged floor to collect the endorsement.

The guarantor also will be for the duration of the mortgage, unless agreed upon a given period or that the loan is amortized amounts, and meets all present and future heritage. For this reason, you should be cautious and take into account that conditions today are not the same as they will in a few years. A guarantor for several decades is a decision that deserves to be pondered, weighed and measured in all its aspects and consequences.