Spain, which has been creamed by a deflating housing bubble, today said that the unemployed can defer half their monthly mortgage payment, up to $640 ($500 euros), for two years. The government will guarantee the rest. This applies to people with mortgages of $217,000 and below (170,000 euros) which is just above the national average.
On the face of it, this looks expensive, but helps both those who are having problems paying their mortgage and those who lost their jobs.
One Comment
Although various ‘workout’ methods might be expensive they remain far LESS expensive than the alternative of foreclosure. A bank takes a very big hit when they have to take a property in a down market, fix it up, maintain it, and try to sell it.