[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
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Israel's Operation Protective Edge is the third major offensive on the Gaza Strip in six years.
Muslims and Arabs in the US say they face discrimination in many areas of life, 13 years after the 9/11 attacks.
At one UN site alone, approximately four children below the age of five are dying each day.
Featured
The conservative UMP party suffers from crippling internal divisions and extreme debt from mismanagement.
More than fifty years of an armed struggle for independence from Spain might be coming to an end in the Basque Country.
After the shooting-down of flight MH17, relatives ask what the carrier has learned from still-missing MH370.
Human rights and corporate responsibility prompt a US church to divest from companies doing business with Israel.
Afghan militias have accumulated a lengthy record of human-rights abuses, including murders and rapes.
join our mailing list