A Popular Legislative Initiative proposes amendments to the mortgage law in Spain


The Popular Legislative Initiative (La Iniciativa Legislativa Popular, ILP)

1.402.854 signatures have been collected from over
600 collection points around Spain

What do we want?
When faced with foreclosure, people may settle their debt by
relinquishing their home, and be able to begin anew. The solution proposed in the present Popular Legislative
Initiative is to make retroactive dations in payment the preferred method of
resolving the conflict. In cases where the good is the main residence, its
adjudication by the financial institution will pay off the debt, by completely
relinquishing the residence with all interests and costs. The settlement of a
debt through the law will entail the settlement of any security or collateral.

How can this be achieved?
A Popular Legislative Initiative (Iniciativa Legislativa Popular, ILP) which proposes an amendment to
the mortgage law will be presented before the Congress of Deputies. To do this,
over 500,000 signatures must be collected before 25 January 2013 throughout the

What exactly does the ILP propose?

  1. Retroactive dation in payment
    dation in payment refers to the relinquishing of a residence to the financial
    institution to which a mortgage is owed in exchange for being relieved from all
    debt with that financial institution.

  2. Cessation of evictions
    primary residences when mortgage payment default is due to reasons beyond the lack
    of debtors’ will to make payments.

  3. Social Rental Housing
    debtor maintains the right to continue living in their residence, paying rent
    of no more than 30% of their monthly income during a period of 5 years.


For more information in Spanish on the ILP, please visit their website: www.quenotehipotequenlavida.org

For more background information on the housing crisis and evictions in Spain, please click here.

Click here to watch the video in Spanish of a speech Ada Colau from the Plataforma de Afectados por la Hipoteca gave to the Congress of Deputies regarding the mortgage law.

If you would like more information in English, please contact the HIC General Secretariat at gs@hic-net.org.