Mortgage moratorium, COVID epidemic 19 and alarm status

Abstract

Royal Decree - Law 8/2020, whose objective scope was extended by Royal Decree - Law 11/2020, aims to avoid the early maturity of mortgage loans contracted by debtors who are actually in situation of economic vulnerability derived from the COVID crisis 19, granting a mortgage moratorium, that is, suspending the contractual obligations derived from certain mortgage loans for a period of three months from the implementation of the measure by the creditor. These may be mortgage loans contracted either for the acquisition of the family home, or for the acquisition of real estate subject to the professional or business activity of vulnerable self-employed persons, or of real estate acquired for its subsequent lease in which the lessee has stopped paying income as a consequence also of the COVID - 19 crisis.

The Royal Decree - Law 8/2020 also foresees the possibility that the parties reach a novation that as essential content must incorporate the legal moratorium requested by the debtor.

Likewise, it foresees that guarantors, guarantors and non-debtor mortgages who have guaranteed with bail or mortgage the debts of others, and in whom the situation of vulnerability described in article 16 of Royal Decree - Law 11/2020 concurrred, may, apart from availing themselves of the moratorium on own mortgage debts, preventing the execution of your family home for external debts during the general period of validity provided for measures that do not have a specified duration, that is, up to a month after the end of the alarm status.