sh banks have agreed to halt evictions for the most financially vulnerable people as the government examines other alternatives for addressing the wave of mortgage defaults since the country’s housing market crashed in 2008.
Following talks with the government, major banks agreed to implement a two-year suspension on evictions Monday.
Public opposition has been mounting against Spain’s current foreclosure policies, which hold homeowners liable to repay any remaining value on their mortgages even after defaulting on payments and eviction.
Over 350,000 people have lost their homes since 2008, many unable to afford their mortgage payments after losing their jobs amid the economic recession.
Two suicides committed by people who were being evicted from their homes in recent weeks has increased public outrage and prompted the government to take action.
Last Friday, a 53-year-old woman in Madrid jumped to her death from her fourth floor condo as local authorities arrived to evict her. A man in Granada committed suicide last month after he was due to be evicted from his home.
The Spanish government met with the political opposition Monday to discuss new legislation regarding home foreclosures.
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