[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
More than one-quarter of Gaza's population has been displaced, causing a humanitarian crisis.
Ministers and MPs caught on camera sleeping through important speeches have sparked criticism that they are not working.
Muslim charities claim discrimination after major UK banks began closing their accounts.
Italy struggles to deal with growing flood of migrants willing to risk their lives to reach the nearest European shores.
Featured
In Brussels, NGO staff are being trained to fill the shortfall of field workers in West Africa.
Lawsuit by 6-year-old girl, locked up for a year, reignites debate over indefinite detention of 'boat people'.
Indonesian and Malaysian authorities are keeping a close eye on local supporters of the hard-line Middle East group.
Citizens of the tiny African nation say they're increasingly anxious of the fallout after alleged coup.
A humanitarian crisis and a budget crisis converge in the heart of the human smuggling corridor in Texas.
join our mailing list