The National Council of Public Notaries in Spain has issued a circular to all practicing notaries to the effect that the new laws relating to foreclosures approved judicially should be extended to ‘non-judicial’ foreclosures. The new rules have a number of effects, the most important perhaps being that the minimum value that may be attributed to a foreclosed property is 60% of the assessed value instead of the previous 50%.
S0, where a property is being foreclosed via the non-judicial route – which happens where the parties to the mortgage have expressly agreed what should happen where there is a default on the mortgage repayments – the mortgagees will benefit from the same protection as those whose properties are being foreclosed via the courts.
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