[QODLink]
Europe
Effects of Spain's foreclosure laws
Mortgage defaulters in Spain end up owing large amounts to banks after they lose their homes.
Last Modified: 14 Nov 2010 18:37 GMT

The fallout from the recent global economic crisis has hit homeowners hard around the world.

But the system in Spain is especially harsh for those who can no longer afford to make their mortgage payments.

For many Americans facing foreclosure, that would be the end of it. But for Luis Marti and thousands of other Spaniards, it is just the beginning of their troubles.

In Spain, foreclosure and eviction do not terminate the debt, so after losing their homes, many people owe the remainder of the mortgage. Therefore, people cannot escape the debt through bankruptcy either, because mortgage debt is specifically excluded from the bankruptcy laws.

Al Jazeera's Barbara Serra reports from Barcelona.

Source:
Al Jazeera
Topics in this article
Country
Featured on Al Jazeera
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Nearly half of Canadians have suffered inappropriate advances on the job - and the political arena is no exception.
Featured
Women's rights activists are demanding change after Hanna Lalango, 16, was gang-raped on a bus and left for dead.
Buried in Sweden's northern forest, Sorsele has welcomed many unaccompanied kids who help stabilise a town exodus.
A look at the changing face of North Korea, three years after the death of 'Dear Leader'.
While some fear a Muslim backlash after café killings, solidarity instead appears to be the order of the day.
Victims spared by the deadly disease are reporting blindness and other unexpected post-Ebola health issues.