Copyright ©2012 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.

AUDIE CORNISH, HOST:

In Spain, a 53-year-old woman threw herself from a fourth floor window, Friday. She chose suicide with bailiffs were climbing the stairs to evict her. Her death prompted Spanish banks to declare a two-year moratorium on some home repossessions for humanitarian reasons.

As Lauren Frayer reports from Madrid, Spanish unemployment is now above 25 percent and hundreds of people have been losing their homes every day.

UNIDENTIFIED GROUP: (Foreign language spoken)

LAUREN FRAYER, BYLINE: For months, demonstrations like this one popped up on otherwise quiet residential streets across Spain. Protesters form a human chain, forcibly blocking bailiffs from evicting residents who've fallen behind on their mortgages. Sometimes, it turns violent.

OLGA VELOSO: (Foreign language spoken)

FRAYER: Olga Veloso stopped making payments on her Madrid apartment when she lost her job as a janitor two years ago. She's been served eviction papers twice.

VELOSO: (Through translator) A judge came with the police to demand the keys to my home. But thanks to protesters and my neighbors, we all blocked the door and prevented them from entering. We stopped them twice, and I'm preparing for the third time.

FRAYER: But she hopes there won't be one. Spain's cabinet is expected to vote Thursday on historic changes to the country's mortgage laws, designed to keep defaulters in their homes longer. Banks themselves have already declared a two-year freeze on evictions of Spaniards in extreme conditions. The president of the association of Spanish banks, Miguel Martin, explains.

MIGUEL MARTIN: (Through translator) Cases of illness - serious ones, cases in which people are dependent on others, cases in which people are elderly or have young children.

FRAYER: For weeks, protesters have gathered outside the Madrid headquarters of Bankia, Spain's largest property lender, which went bust last spring. Bankia and other lenders are getting in up to $125 billion bailout from Europe.

CORNISH: Meanwhile, longtime Bankia customer Melchorita Garcia is asking for just a little leeway on her $500-a-month mortgage payment. But all she's gotten is an eviction notice.

MELCHORITA GARCIA: (Through translator) I'm really scared. I'm so worried about what will happen and where I'll go if they take away my house and leave me in the street.

FRAYER: Garcia hopes for relief under the new moratorium on evictions. She also lost her job, and her 14-year-old son, Miguel, has autism. She breaks down as she reads a letter from the boy, begging her loan officer to allow them to stay in their home.

GARCIA: (Through translator) I don't like to see my mother so sad, suffering without work, with all the people lined up outside the bank. It's very cold there. I hope you grant my wish. God will not abandon us. Sincerely, Miguel.

FRAYER: Eviction is a devastating thing for a family anywhere to go through. But in Spain, it's worse. Borrowers can't walk away from a mortgage and declare bankruptcy says economist Gayle Allard at Madrid's IE Business School.

GAYLE ALLARD: You know, you walk away and you still owe money. You lose your house, but you still owe money to the bank which, you know, Americans, we would find that outrageous.

FRAYER: Spanish lawmakers are reviewing that rule and others this week in hopes of granting some relief to borrowers. For NPR News, I'm Lauren Frayer in Madrid.

MELISSA BLOCK, HOST:

Stay with us. ALL THINGS CONSIDERED continues right after this.

Copyright © 2012 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.