Loans between Individuals and Law 1/2013

Mortgage lawLoans between individuals and the impact of the mortgage law 1/2013 of May 14

Study of the impact of the entry into force of “ Law 1/2013 of May 14 on Measures to reinforce the protection of mortgage debtors, debt restructuring and social rent ” on loans between individuals with a mortgage guarantee.



From the preamble of the law it can be deduced that it was drawn up in attention to the exceptional circumstances that our country is going through, motivated by the economic and financial crisis, in which many people who contracted a mortgage loan for the acquisition of their habitual home are struggling to meet their obligations.

As the first measure adopted by the aforementioned Law, there is the suspension of launches for a period of 2 years from its entry into force of the habitual dwellings of " especially vulnerable groups ", which we must differentiate from those that are on the threshold: "Social exclusion", having one and another different characteristics that will be dealt with in this document, the following being ESPECIALLY VULNERABLE COLLECTIVES :

a) Large families

b) One-parent family unit with two dependent children.

c) Family unit of which a child under three is a member.

d) Family unit in which one of the members has a declared disability greater than 33%, a situation of dependency or illness that permanently incapacitates him or her to carry out a work activity,

e) Family unit in which the mortgage debtor is unemployed and has exhausted unemployment benefits.

f) Family unit with which they live, in the same home, one or more people who are united with the mortgage holder or his spouse by kinship up to the third degree of consanguinity or affinity, and who are in a personal situation of disability, dependency, serious illness that accreditedly disables them temporarily or permanently to carry out a work activity.

In order for the law 1/2013 to apply, in addition to being considered “especially vulnerable”, the following circumstances must be present in the borrower:

a) That the total income of the members of the family unit does not exceed the limit of three times the Public Income Indicator for Multiple Effects. This limit will be four times the Public Income Indicator for Multiple Effects in the cases provided for in letters d) and f) of the previous section, and five times said indicator in the event that the executed person is a person with cerebral palsy, with mental illness or with intellectual disability, with a recognized degree of disability equal to or greater than 33 percent, or person with physical or sensory disability, with a recognized degree of disability equal to or greater than 65 percent, as well as in cases of serious illness that accreditedly incapacitate the person or their caregiver to carry out a work activity.

b) That, in the four years prior to the time of the request, the family unit has suffered a significant alteration of its economic circumstances, in terms of effort to access housing.

c) That the mortgage payment is greater than 50 percent of the net income received by all the members of the family unit.

d) That it is a credit or loan guaranteed with a mortgage that falls on the only home owned by the debtor and granted for the acquisition of the same.

The concurrence of the above requirements may be accredited in any state of the foreclosure procedure , which makes it presume that the state of the borrower will not be taken into consideration at the time of the constitution of the loan but at the time of its execution, which it will cause some insecurity in the lender .

The norm can be applied to judicial or extrajudicial foreclosure processes that had begun upon the entry into force of the same, in which the launch had not been executed.

Until two years have elapsed since the entry into force of this Law, the launch will not proceed when in a judicial or extrajudicial process of foreclosure the creditor or person acting on their own has been awarded the habitual residence of people who are in the assumptions of vulnerability.

In this chapter the repercussions of the current law have become clear, in the next chapter we will explain the measures to improve the mortgage market that have been taken.

I hope they are to your liking and interest.