You lose your home but keep the debt.
Under Spanish law, in a foreclosure, you lose your home but keep the debt. Spaniards every day protest against eviction from homes – homes bought on credit under terms their banks convinced them were within their means. Most of the hundreds of thousands of evictions in the past several years have been families with children. Savings banks, known in Spanish as “cajas”, issue more than half the total value of mortgages in Spain. One of the biggest problems for the savings banks is the amount of property they own. Many of them are now referred to as “bad assets” because their value has fallen so sharply. However the Confederation of Spanish Savings Banks (CECA) rejects the notion that, prior to 2008, its members were guilty of irresponsible lending.
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