LA DEUDA REMANENTE Y LA MODERACIÓN DE LA RESPONSABILIDAD PATRIMONIAL UNIVERSAL DEL DEUDOR HIPOTECARIO EJECUTADO, TRAS LA LEY 1/2013, DE 14 DE MAYO.

Abstract

Act 1/2013 of 14 May on measures for the reinforcement of mortgage borrower protection, debt restructuring and public rental housing espouses the philosophy of numerous judicial decisions that, following the lead of the Provincial Appellate Court of Navarra (Section 2) of 17 December 2010, have striven to moderate the unlimited personal liability of mortgage borrowers affected by the growth and bursting of the real estate bubble. The primary mechanisms established by the act to achieve this moderation are the possibility of ridding the enforcement order of abusive clauses that state the sum to be demanded at foreclosure; the placing of legal limits on the interest rate applied to late payment with retroactive effects; the alteration of the Civil Code's rule on the application of payments, for judicial and other foreclosures; legal novation of the outstanding debt and partial forgiveness of the outstanding debt if certain payment conditions are met; and the establishment of a share for the borrower in the capital gains generated when the borrower's primary home is auctioned by the foreclosing lender or the winning bidder's assignee, or any company in its group.