REFLEXIONES SOBRE LA LEY 1/2013, DE PROTECCIÓN A LOS DEUDORES HIPOTECARIOS.

Abstract

Act 1/2013 of 14 May contains a number of technical missteps, features some rather peculiar measures and arouses no few misgivings. Accordingly, fresh reforms may be expected to follow in the near future. The act is separated into four chapters on (i) the suspension of evictions (ii) improvements in the way the mortgage market is regulated (iii) reforms of the mortgage procedure and (iv) amendments to Royal Decree-Law 6/2012. The first chapter is nearly pointless. It practically parrots Royal Decree-Law 27/2012, which as a result has become deadwood. The second chapter introduces some major changes: foreclosure orders must state whether the property at issue is someone's regular home; a ceiling is set on interest on late payment; the system for extra-judicial property sales is updated; appraisal company regulations are tightened up; and a peculiar mechanism is instituted to provide protection against clauses limiting interest rates. The foreclosure reforms focus especially on issues that have become sensitive of late. The reforms include curbs on abusive clauses, stricter upset prices for auctions, and proceedings to exact further monetary repayment of loans after foreclosure on the mortgaged property. The fourth and last chapter wisely expands the narrow bounds set on the exclusion threshold in Royal Decree-Law 6/2012. It also introduces new measures of protection, such as recognition of the right of exclusion for any sureties who expressly waived that right in the foreclosure order.