The ban on mortgages COVID-19 comes to an end in Spain!

 

One of the interventions imposed in the worst coronavirus crisis by the Spanish Government was the mortgage moratorium on homeowners whose income was directly damaged as a consequence of the pandemic. After being extended several times, the COVID-19 mortgage moratorium in Spain eventually ended, so no new applications will be approved. As of 30 March 2021, persons affected financially by the coronavirus crisis can not apply for the deferment of mortgages or loan payments to the bank anymore. pearl apartments

According to the latest figures from the Banco de España, 222,256 statutory moratoria (those promoted by the government) of the total applications submitted were granted until the end of February, amounting to an outstanding balance of nearly EUR 20 billion.

Note that the expenses will be covered until the end of the negotiated term if you already take advantage of a mortgage moratorium. However, if your mortgage moratorium was accepted before the first alarm, it would expire. Therefore, anyone in this situation must recover their normal mortgage payment scheme.

The first and second moratorium adopted by the Spanish Government contemplated a maximum duration of application of nine months, which could be extended for a further three months if it also succeeded in implementing the sectoral mortgage moratorium (i.e. the one that was launched by the banks as their own initiative and which formally ended last September). In other terms, beneficiaries are given delay payments between 9 and 12 months.

But what happens when this time ends, but a mortgage holder has still financial issues preventing them from making regular payments? According to the OCU, there are many options: There are

Negotiate with the bank a reduction of the monthly mortgage payment in return for an extension of the period for the mortgage. This alternative would result in more demand, in the long run, while it may be a solution for many employees and self-employed people in the short term.

Ask the bank for an interest period, but the money is not repaid. According to the OCU, banks appear now open to considering payment-friendly solutions compared to the past crisis.

In the most severe case (the mortgage owner has a very high debt level and there is little hope of an improvement in his economic situation), the OCU recommended that the property be sold, particularly if the sum that could be acquired is higher than the debt outstands. Given the ambiguity, the OCU considers that "the money you will now get from the sale will possibly be more than what you can get within a couple of months."

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