The entry of new foreclosure procedures has risen 60%, to 21,430 cases, according to the latest data provided by the General Council of the Judiciary (CGPJ) at the end of the third quarter of the year. The increase is explained, according to the financial sources consulted, among other issues, for two reasons: on the one hand, the return to judicial normality after the paralysis experienced in the second quarter of 2020 as a result of the outbreak of the pandemic in our country, and on the other, to the Supreme Court ruling at the end of 2019 on early expiration that kept all cases frozen until deliberation.
The High Court then urged the application of the Real Estate Credit Contracts law, better known as the mortgage law, to determine the nullity of the early maturity clauses of a loan, which in practice prevents evictions with less than twelve unpaid installments . Until the communication of this failure there was a bottleneck in the processes. Only in the third quarter of the year there were 6,500 processes, 15% less than in the previous three months, although the decrease may be due to the seasonal effect of holidays.
Likewise, it should be remembered that the financial sector, due to the health crisis, announced its commitment to curb evictions during the worst moments of the pandemic in order to protect the most vulnerable families and avoid past reputational errors, such as those experienced in the last great recession.
However, the same sources consulted indicate that foreclosures are a step prior to launches (evictions) and not all end in it, that is, taking away the home from the user who has incurred in default. In fact, based on data from the General Council of the Judiciary, around 35% of foreclosure processes end in launches.
This number of evictions has also grown, and significantly, in the first nine months of the year. Specifically, at the end of September of this year there have been a total of 7,600 launches for foreclosures nationwide (does not include processes for non-payment of rent ), which means 78.5% more compared to 13,344 in the same period 2020.
By Autonomous Communities, in absolute terms, Andalusia and the Valencian Community have been the ones with the most evictions with 1,467 and 1,640, respectively. However, where they have grown the most compared to a year before has been in Castilla-La Mancha, where there have been 200% more launches (388) compared to a year before, followed by the Basque Country, than with 128 launches, which implies that they have increased by 190%.
On the opposite side is La Rioja, both in absolute terms, there have been only 45 evictions , as well as growth, since the figure shows an increase of 9.7%. As a figure, five Autonomous Communities have doubled the number of launches due to foreclosures so far this year (Aragon, Cantabria, Catalonia, Galicia and Navarra) and two have tripled them (Castilla-La Mancha and the Basque Country).