Fewer apartment foreclosures in Alicante despite increase in mortgages

On the contrary, to the surprise of many, so far this year Financial institutions even reduced the number of foreclosures It started in the Alicante trials and reflected the resistance. payment capacity families – supported above all by improved employment – ​​but also banks refusing to hold more propertyAfter the enormous efforts they had to make to clean up their balance sheets from the brick craze that followed the burst of the property bubble.

In this way, according to the last balance sheet published by the General Assembly of the Judiciary; Compared to 1,476 requestsconfiscation of any property offered by organizations in the province Between January and September last yearThis exercise The figure dropped to 1,070, or 27.5 percent less. These are also figures that bear no relation to those recorded during the previous crisis, when more than 5,000 seizures per year were commonplace and In 2010, the worst year ever, nearly 8,300 mortgages were foreclosed for nonpayment.

There is also a generalized decline all over spainAccording to the same statistics, transaction volume decreased by approximately 25% last year, falling to 13,628.

Whatever the impact civil servant strike Due to the delay in ensuring justice and procedures in the first half of the year, the sector itself admits that the situation is very different from 16 years ago and the main difference is in the labor market. In contrast to the sharp increase in unemployment that occurred during that period, the current rate increase Employment improved “better than expected”and this allowed families to absorb the increase,” says an analyst from the Spanish Mortgage Association Leire Lopez“reminds me of this”Mortgage is always the last thing to stop paying“Thus, mortgage defaults in Spain remain at a low level of 2.44%.

accumulated savings

It also helped savings pillow During the pandemic, it was observed that many households saved by reducing their leisure expenses, which led to significant expenses. partial depreciations As stated by the person responsible for the Communication of the Banking Users Association (Asufin), granting mortgages in order to alleviate the increase in monthly payments, Veronica RodríguezThis also indicates that banks moved around a lot after the bubble burst. Be more careful when giving these loans, This means new mortgage borrowers (those with the highest balances) also have higher solvency ratios.

To this we must add that, unlike what happened between 2009 and 2014, the real estate market continued to function, which made it easier for the “more debt burdened” cases. They managed to sell the house to pay off the loan.

Institutions also increased their rates according to their own shares. lesson learned and they have now shown that they are much more open to renegotiations Search possible solutions for customersIn order to prevent them from defaulting and having to assume ownership of the properties, above all, with the regulatory and operational costs this entails, as the spokesman for the Spanish Mortgage Association admitted.

Finally, we must remember that in cases where non-payment occurs: New mortgage law of 2019 I am increasing the number of outstanding installments in order to pay off the mortgage. As expert lawyer Carlos Javier Zarco points out, previously it was common for the apartment to be seized with only three unpaid bills; Now it should take between one and one and a half years.