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Spain Rejects Proposal to Reform Mortgage Foreclosures

Spain’s Parliament rejected a law that would have eased the effect of mortgage foreclosures for as many as 300,000 homeowners who have lost their properties.

The Galician National Block, known as the BNG in Spain, had asked legislators to amend the law to allow mortgage holders to walk away from their debt by handing over the keys to their properties. It also would have permitted homeowners to delay mortgage payments beyond stipulated deadlines and to consent to partial debt write-offs. Lawmakers rejected the proposals, Parliament said on its website late last night.