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Foreclosures Of Primary Residence Set A Record Since 2017

The number of foreclosures on habitual dwellings soared 84.1% in the first quarter of the year compared to the same period of 2020, to stand at 3,207, the highest figure in four years, according to the foreclosure statistics published this Friday by the National Institute of Statistics (INE) .

Registrations for foreclosures initiated on the homes of individuals increased by 69.1% in the annual rate. Those initiated on the dwellings of legal persons fell by 60.4% . The number of registrations of certifications for foreclosures initiated in the property registries in the first quarter of 2021 was 8,257, which was 17.5% less than the previous quarter and 23.7% less than in the same quarter quarter of 2020.

Among the homes of individuals with foreclosure, 3.2071 are for homes owned (84.1% more than in the same quarter of 2020) and 682 are for non-habitual residence of the owners (22.3% more).

The main objective of this statistic is to offer quarterly the number of foreclosure certifications initiated and registered in the Property Registries during the reference quarter. Statistics reminds that not all foreclosures end with the release (eviction) of their owners.

Statistics adds that in March 2020, when the state of alarm came into force, extraordinary measures were adopted consisting of seeking a moratorium on the mortgage debt for the acquisition of habitual residence. Sources in the real estate sector criticize that executions continue despite the moratorium after the accumulation of pending processes during the past year.

The Government extended until August 9 the decree that regulates the moratorium on evictions and rental contracts during the state of alarm, despite which the launches “continue to take place in cities like Barcelona”, according to Ignasi Vives, lawyer of the Sanahuja Miranda Law Firm.

“Not all courts are applying the suspension of eviction procedures and tenancy releases,” says the lawyer, who adds that “it is only suspended if the tenant can prove that he is in a situation of vulnerability as a result of the covid, if he has lost his job or is in erte “.

Home foreclosures accounted for 62.7% of total foreclosures in the first quarter of 2021. 38.8% of total foreclosures are habitual homes for individuals. There are 3,207, 84.1% more than in the first quarter of 2020. 15.6% corresponds to dwellings of legal persons and 8.3% to other dwellings of natural persons.

In the first case there are 1,289 executions (60.4% less in the annual rate) and in the second there are 682, 22.3% more. For their part, foreclosures in other urban areas (premises, garages, offices, storage rooms, warehouses, residential buildings, other buildings and urban uses) account for 30.1% of the total.

The communities with the highest number of certifications for foreclosures out of the total number of properties in the first quarter were the Valencian Community (1,731), Andalusia (1,526) and Catalonia (1,426). On the other hand, Comunidad Foral de Navarra (16), La Rioja (50) and Extremadura (68) registered the lowest number. In the case of housing, AndalucĂ­a (1,094), Comunitat Valenciana (1,093) and Catalunya (1,011) presented the highest number of executions.

The minors occur in Comunidad Foral de Navarra (14), La Rioja (41) and Extremadura (43). 18.8% of the mortgage foreclosures initiated on dwellings in the first quarter correspond to mortgages constituted in 2007, 13.7% to mortgages constituted in 2006 and 10.2% to mortgages in 2005. The period 2005- 2008 accounts for 52.2% of the foreclosures that started this quarter.

In the first quarter of the year, 8,257 foreclosures were initiated, 17.5% less than in the previous quarter and 23.7% less in the interannual rate. Of these, 7,906 affected urban farms (which includes homes) and 351 rural farms.

Foreclosures on urban properties fell 17.2% compared to the previous quarter and 22.9% compared to the first quarter of 2020. Within urban properties, 5,178 foreclosures corresponded to homes, 9.3% less in rate quarter-on-quarter and 6.7% less in year-on-year terms, of which 3,889 were foreclosures on individuals’ homes, 3.4% more than in the previous quarter and 69.1% higher than in the first quarter of 2020 .