SOBRE LA ADJUDICACIÓN DEL INMUEBLE HIPOTECADO EN PAGO DE LA TOTALIDAD DE LA DEUDA.

Abstract

The current economic and financial crisis has hit the world economy hard, due to the deep connections between domestic economies and the heavy dependence globalisation has generated between states and financial institutions. However, in our country the effects of the crisis have spilled beyond the financial sector as a consequence of the crippling overdevelopment of construction and the real estate sector and the serious exposure of the firms in that sector to the crisis. These factors have ended up causing serious solvency problems throughout broad sectors of the population. The main legal consequence in this respect has been a rise in mortgage foreclosures after borrowers default on their homeowner's loans and, due to the depreciation in housing values, the taking of legal action by lenders to seek payment in full from debtors' personal assets. In a context of crisis and growing unemployment, this means impoverishment. As a result, many people have been talking lately in judicial, political and social forums about the possibility of avoiding this effect by enabling borrowers to surrender their mortgaged property in full payment of their debt and taking other measures that involve limiting borrowers' liability to the value of the mortgaged property. This paper takes a close look at the various legal implications the solution would have, primarily the possibility of adopting such a solution in the light of current legislation on borrowers' liability for debts secured with a mortgage. The possibility of making proposals lege ferenda is addressed, and the economic implications such a reform would have are discussed.