Solution how to cope with mortgage payments
In just 3 years, ie since 2007 at least 271,500 people have lost their homes because they can not cope with their mortgage payments. But even though many of them homeless, have to continue paying the mortgage bank from the left.
This is resulting in one of the topics of debate is whether the delivery of the keys to the bank should not to complete the mortgage. As we can see that Zapatero, president of Spain, not the work of changing the Mortgage Law to resemble the American mortgage.
For this reason, we can see in the view of Bartolome Ruiz, the American formula should work if the value of the apartment resembled the real mortgage granted. That is why in Spain this type of mortgage does not work, because the banks granted all the money necessary, making the pricing was right for the money order and not the real value of housing, there is add that recommended them to choose a variable interest rate.
This is why it is said that if the value has gone down is a thing of the banks of the mortgage thing, since in these falls is where the full weight of the drop in home values.
While on the other hand, the civil code says that “the rules are interpreted in relation to the context and social reality”, which goes against the Mortgage Law.
That is why, if the giving of payment was a reality, give credit only to those who really could cope with the debt assumed with the mortgage loan. In addition to the giving of payment, which is that the interest would be more expensive, which would result in a decrease in prices of apartments, since they would have to match the salaries of Spanish.
Meanwhile, what they are in favor of the current model, say that to apply the American model the financial problem would only worsen the situation, which means that if the mortgage law so far has worked well for 150 years, it will have to continue to be used in bad times not to allow the financial collapse. Also, if the model changes, people who wanted to buy a house and interest would be higher, which would be able to access a mortgage would be more difficult or nearly impossible. To this must be added that the bank of Spain’s credibility with what that means that the financing of the Spanish banks would be more expensive.