State of alarm and moratorium on mortgage payments

The application of Royal Decree 8/20 of extraordinary urgent measures to deal with the economic and social impact of Covid-19 establishes measures to seek a moratorium on mortgage payments.

It should be borne in mind, however, that this measure is an extension of the time for payment of the debt, and is limited to mortgages that are intended for the acquisition of habitual residence. In addition, this mortgage or loan must be secured or secured by a property. It is also necessary that the person obliged to pay is in a situation of economic vulnerability. But in addition, these circumstances of precarious economic situation can only be those contained in the same regulations and must be given at the time this law was agreed.

In summary we can say that these requirements are:

1. Being unemployed or being self-employed or professional and having a very significant drop in income.
2. That the total income of the family unit has not exceeded in the previous month an amount that will vary depending on the circumstances of each family.
3. That the mortgage installment, plus basic expenses and supplies, be equal to or greater than 35 percent of the family’s total net income.
4. That as a result of the health emergency the family is affected in their effort to access the home.