The obvious reaction to this will be making it all nut impossible to get a mortgage loan.
There will be a new 2-tier class system. Those that “got theirs” before the new ruling and those who will rent for the rest of their lives.
In the meantime unscrupulous owners and criminals will start defaulting even if they don’t financially need to. Why pay a note when you can stay for free?
Idiots.
My understanding is that in America, if the bank evicts you because you have fallen behind on your mortgage, then they are exchanging the mortgage obligation for the collateral (the house). Thus, if you are evicted, then you are no longer obligated to the mortgage agreement.
What kind of mortgage agreements are they signing in Spain?
Sure, why bother paying that pesky mortgage? After all, the Evil Banks tricked people into buying those homes. Besides housing is a “right”—so there should be free houses for everyone!
Or maybe the mortgage should be adjusted based on what the house is actually worth TODAY? Of course, that scheme can cut both ways.....
What happens to all the homes people are evicted from? Do they just stand empty? I can’t imagine there are too many buyers standing in line.