Dation in payment

According to the current mortgage law, when a family can no longer continue paying the mortgage that it drew on the appraisal value of its house, the bank will keep the property, deducting from the pending debt only half of the value which was estimated in the contract. This leads not only to the eviction of the family from its home, of which it is no longer the owner, but to the ongoing payment of a large percentage of the debt it maintains with the bank. This situation is known among many of those who are affected as "eviction for life"
The PAH wrote up and pushed forward a proposal to change the law in order to regulate the concept of dation in payment. The change applied to the habitual place of residence of a family and to those debtors acting in good faith, so if a foreclosure were to take place, the remaining debt would be settled. This happens in other EU countries and in the USA.