The amount of foreclosures could be lower in Spain
Studies by the Observatorio de la Financiación Familiar -Spain’s Family Finance Watch- have concluded that 30% of the foreclosures in Spain could have been avoided, had the affected owners engaged in a debt consolidation package. Actually, it shows that 71% of the people with mortgages would have accepted an increase on the credited amount and on the payment period on return for monthly payments of 30% less.
The Agencia Negociadora de Productos Bancarios –Spain’s Financial Products Trading Agency- adds that the number of foreclosures in 2010 shows the imperious need for an alternative to judicial measures to avoid such foreclosures, relieve the workload of courts and give a breath to mortgage holders that cannot afford the monthly fees anymore.
Some of the alternatives proposed by the Agency are the extension of the payment period, a grace period on the payment of interests, debts refinancing and assessment by the financial entity to accelerate the sale of the property. This would result in advantages for both parties, as losses and judicial processes would be avoided on both sides.