IN BRIEF / SPAIN
Rising unemployment and economic crisis will see more than 510,000 Spanish families lose their homes via foreclosure proceedings.
These are the findings of the Association of People Affected by Foreclosure and Auctions (Asociación de Afectados por Embargos y Subastas – AFES) which looked at the impact of mortgage default in the context of Spain’s economic problems, reports El Publico newspaper.
In 2012 alone, 135,000 families will be left without shelter as a result of foreclosure proceedings.
The foreclosures will lead to banking losses of Euros 34 billion in 2012-2015, suggesting it will be very difficult for the new right wing Popular Party Government to make good on its commitment to fix the housing sector.
Property prices and construction boomed in Spain for two decades on the back of reckless bank lending that massively distorted the economy. The bubble burst in 2007, bringing the whole economy down.