In Spain, as in some other European countries, people who lose their homes to foreclosure remain on the hook for the unpaid balance of the mortgage.

Since 2007, some 400,000 families in Spain have lost their homes to foreclosure.

In many cases, homeowners purchased properties at inflated prices during a long−building housing bubble after they were approved for a substantial mortgage loan with highly favourable conditions.

The collapse of the real−estate bubble left many Spanish banks saddled with toxic assets and sent the country's economy into a severe tailspin.

Spain is mired in recession for the second time in four years and the unemployment rate stands at a record 25.02 percent.

http://in.news.yahoo.com/spain-freezes-foreclosures-two-years-055828558.html