This is an interesting article regarding debt and foreclosures in Spain. When properties are foreclosed in the United States the bank owns the property but that is it. However, in Spain when properties are foreclosed, you loose the property but you also still owe the bank what ever debt is incurred. Spain's unemployment rate reached the 20% and heavily in debt. Many people cannot afford houses anymore, and people are loosing the houses left and right approx 1.4 million people. Many people are have lost their houses and jobs and essentially in debt to banks for life.
What do you purpose the Spanish government do ?
"They say he now owes nearly 260,000 euros, almost $360,000, which includes about 77,000 euros to cover all court costs, including the bank’s, his lawyer said. He bought the apartment for less than that — about 220,000 euros"
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