As the Government and opposition PSOE engage in discussions to find a solution to the problem of evictions, the banks have agreed to suspend evictions for a two-year period in ‘extreme cases’ on ‘humanitarian grounds’. There is, however, no clear definition of ‘extreme’.
The banks rejected a socialist request to make the moratorium on evictions retroactive.
The banking sector reluctantly accepted a Code of Good Practices on evictions in March of this year, which in theory provides protection for homeowners in certain cases, such as those where all family members are out of work and have to set aside over 60 percent of their resources to pay their mortgage.
Under Spanish law, even in the case of foreclosures, mortgage holders are still liable for outstanding bank payments on the property.