Spain's socialist government announced Friday it had extended a mortgage moratorium for out-of-work homeowners in a bid to stem foreclosures.
Jobless homeowners will now be able to defer up to half of their monthly mortgage payments up to a maximum of EUR500 for three years instead of the two years planned when the measure was unveiled in November.
Deputy Prime Minister Maria Teresa de la Vega said those benefiting from the scheme would have 15 years instead of 10 years to pay back the deferred amount once the initial three-year moratorium period had expired.
The government will underwrite the deferred payments.
The plan applies only to people with mortgages of EUR170,000 or less, which is just above the national average.
When Prime Minister Jose Luis Rodriguez Zapatero unveiled the measure in November he estimated that the mortgage moratorium could apply to up to 500,000 households.
The plan is part of a series of measures aimed at helping the Spanish economy deal with the fallout of the collapse of a real estate boom which has pushed the country to the brink of recession and driven up unemployment to the highest rate in the 27-nation European Union.
Spain's unemployment rate has risen each quarter since it dipped to 8% in the second quarter of 2007, its lowest level since 1978, to hit 14% during the last three months of 2008.
Wednesday, February 25, 2009
Friday, February 20, 2009
Portuguese property in demand
Portugal has made significant strides towards catching its Iberian neighbour, Spain, as the most searched for destination to buy a home abroad based on country page views, and property views, on homesoverseas.co.uk, over the past month, the website said earlier this week.
Britons using this site to search for property abroad are increasingly interested in Portuguese homes, and the country has now moved from fourth to the second most popular destination to buy home, moving past traditional favourites France and Italy.
The website explains that “in spite of the global economic downturn, enquiries for properties overseas for sale remain firm, confirming the desire amongst Britons to own a home abroad remains as popular as ever.”
Britons using this site to search for property abroad are increasingly interested in Portuguese homes, and the country has now moved from fourth to the second most popular destination to buy home, moving past traditional favourites France and Italy.
The website explains that “in spite of the global economic downturn, enquiries for properties overseas for sale remain firm, confirming the desire amongst Britons to own a home abroad remains as popular as ever.”
Tuesday, February 17, 2009
Banco Santander suspends Spain's largest real estate investment fund
Banco Santander has suspended payments in its largest real estate fund in a decision which has left 43,200 clients with their investment frozen.
The fund, Santander Banif Inmoboliario, has assets of 3.2 billion, but those who now ask for their original investment will be paid ten per cent.
It comes as the bank finds the fund unable to meet recent requests for withdrawals amounting to 2.617 billion, some 80% of the total.
The decision to freeze the fund is a first in Spain, although it is contemplated in law, with the bank asking the regulator CNMV for a two year frozen period. It comes despite the bank’s announcement last month of profits of more than 8 billion €.
The fund, Santander Banif Inmoboliario, has assets of 3.2 billion, but those who now ask for their original investment will be paid ten per cent.
It comes as the bank finds the fund unable to meet recent requests for withdrawals amounting to 2.617 billion, some 80% of the total.
The decision to freeze the fund is a first in Spain, although it is contemplated in law, with the bank asking the regulator CNMV for a two year frozen period. It comes despite the bank’s announcement last month of profits of more than 8 billion €.
Wednesday, February 11, 2009
Mortgage Fraud Fugitive Caught in Spain
The first of three men who fled the United States to avoid prosecution in an alleged $100 million mortgage Ponzi scheme has been arrested in Spain, federal authorities confirmed Tuesday.
Garrett Griffith Gililland III, 27, fled to Europe after federal authorities served a search warrant at his million-dollar home in Chico last June. He was later indicted by a federal grand jury.
According to court documents, the FBI had tracked Gililland to Spain by last fall. In October, a source in Spain told agents he was supposed to receive a package for Gililland. On Oct. 10, 2008, FBI agents intercepted the package at a FedEx Kinko's store in Sacramento and found $20,000 in cash inside.
On Oct. 16, Gililland was arrested in Sitges, Spain, which is a suburb of Barcelona. Acting US Attorney Lawrence Brown told News10 his office had been working quietly for months to return Gililland to California, but that he was fighting extradition.
Gililland's wife, Nicole Magpusao, 29, was indicted on 27 of the same 30 criminal charges facing her husband. A spokeswoman for the US Attorney's office said Magpusao is also facing extradition from Spain, but was not in custody.
Gililland was the first of three men to face charges in connection with Roseville-based Loomis Wealth Solutions, described by an IRS investigator as a real estate Ponzi scheme involving 500 properties in five states with losses estimated at $100 million.
Garrett Griffith Gililland III, 27, fled to Europe after federal authorities served a search warrant at his million-dollar home in Chico last June. He was later indicted by a federal grand jury.
According to court documents, the FBI had tracked Gililland to Spain by last fall. In October, a source in Spain told agents he was supposed to receive a package for Gililland. On Oct. 10, 2008, FBI agents intercepted the package at a FedEx Kinko's store in Sacramento and found $20,000 in cash inside.
On Oct. 16, Gililland was arrested in Sitges, Spain, which is a suburb of Barcelona. Acting US Attorney Lawrence Brown told News10 his office had been working quietly for months to return Gililland to California, but that he was fighting extradition.
Gililland's wife, Nicole Magpusao, 29, was indicted on 27 of the same 30 criminal charges facing her husband. A spokeswoman for the US Attorney's office said Magpusao is also facing extradition from Spain, but was not in custody.
Gililland was the first of three men to face charges in connection with Roseville-based Loomis Wealth Solutions, described by an IRS investigator as a real estate Ponzi scheme involving 500 properties in five states with losses estimated at $100 million.
Friday, February 6, 2009
Spanish industry slumps, defaults soar
MADRID, Feb 5 (Reuters) - Spanish industrial production fell
by almost a fifth during December, the largest decline on
record, and data showed debt defaults soaring as the global
crisis tipped Spain into deep recession.
The 19.6 percent slump in output at Spain's credit-starved
factories and businesses dwarfed slowdowns in other major
European economies. A separate data release on Thursday from the
National Statistics Institute showed 1,082 Spanish firms filed
for bankruptcy protection between October and December, almost
four times as many as in the same period of 2007.
by almost a fifth during December, the largest decline on
record, and data showed debt defaults soaring as the global
crisis tipped Spain into deep recession.
The 19.6 percent slump in output at Spain's credit-starved
factories and businesses dwarfed slowdowns in other major
European economies. A separate data release on Thursday from the
National Statistics Institute showed 1,082 Spanish firms filed
for bankruptcy protection between October and December, almost
four times as many as in the same period of 2007.
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