In Spain, Homes Are Taken but Debt Stays

In Spain, Homes Are Taken but Debt Stays

www.eyeonspain.com

Manolo Marbán, 59, is still living in his house in Toledo and going to work in the small pink-and-aqua pet grooming shop he bought here in 2006. But Mr. Marbán does not own either anymore. The bank foreclosed on both properties last April, and he is waiting for the courts to issue the eviction notices. When the gavel falls on his case, he will still owe the bank more than $140,000. “I will be working for the bank for the rest of my life,” Mr. Marbán said recently, tears welling in his eyes.

(visit the link for the full news article)

In Spain the banks take the house and you are still on the hook for the debt. How is that legal? If the bank takes the property that should be considered their payment for the debt. How can they still be able to go after the money you owed?

Any ATS members from Spain? I would love to hear some comments from people that live there.

The banksters in Spain are really screwing over the people.

www.eyeonspain.com
(visit the link for the full news article)

The same applies to the UK. The bank repossesses the property then sells at auction and you are liable to any shortfall from your initial mortgage.

reply to post by Erasurehead


From my knowledge of people who where reposessed in the UK in the 80s, until the house is sold you still owe the debt, at that time property values where apx 50% of what some people paid, and so when the house was sold that only offset part of the amount with the remainder still owing.. I suspect the UK is the same today if the sale of the property does not cover the debt you still owe the remainder.

reply to post by thoughtsfull


That is terrible. When a bank gives you are mortage they assume the risk. Sometimes they lose. Getting the property should be payment enough.

Damn those greedy banksters.

It's that way in the US too. Even with vehicles. I went through a rough stretch about 10 years ago, they still put me on the hook for 10,000 dollars after the repossession, sale of vehicle, and writing it off as a loss on their taxes. It's nothing new. There is no risk in banking anymore. You're not paying interest on loans because of risk, you're paying interest for the privilege of acquiring the loan.

Originally posted by Erasurehead
reply to post by thoughtsfull

 

That is terrible. When a bank gives you are mortage they assume the risk. Sometimes they lose. Getting the property should be payment enough.

Damn those greedy banksters.

Your last statement I can agree with

It is sad, however you borrow X thousands in capital.. it would be nice if it was tied ot the property, however when you sell it for a profit the profit is yours, and if you (or the bank) sell it for a loss, the loss is yours aswell.. in that aspect it is fair. (as fair as it ever could be with those money grabbing.... )

But it is harsh when banks sell property off cheap as it means the ex-owner is on the hook for it all, and in a lot of cases the shortfall still acrues interest..

reply to post by Erasurehead


Not really sure how this is news, because it's the way most (if not all) banks operate. You take out a loan for $100,000 and don't pay the note, they're going to foreclose. At that point, you still owe the $100,000

The bank will sell the house, and, at this point, they'd still like to get as much as possible, because they're convinced you're a deadbeat and the best source of the $100,000 is someone who is not. If it doesn't sell for what they consider market value to be, they'll keep dropping the price until it does or they'll sell it at auction.

If they sell it for more than $100,000 they are legally obligated to give you the overage (though there might be fees or something that eats into it.) If it sells for less than $100,000 you will still owe them the difference.

Now, you might say (as some in the thread already have) "why doesn't the bank take any risk here?" but they do, because a lot of people who are "upside down" like this (owing more than something is worth) will file bankruptcy and the bank has to eat the difference if the debt is discharged.

So the real risk is not that you won't pay your mortgage, but that the bank will foreclose, and market conditions prevent using the collateral (the house) to satisfy the debt, and you file bankruptcy to get out of what's left. That has happened a lot in the past two years, in the US at least.

You want to hear something even worse than that?

In The US RIGHT NOW banks are FORECLOSING ON NOTES THEY DON'T HOLD ... successfully taking the house in initial judgement.

NEXT they RESELL the house at AUCTION some poor SCHMUCK gets ANOTHER LOAN bidding against other BANKER STRAW MEN at RIGGED AUCTIONS!!!

SAID SCHMUCK GETS A LOAN TO PAY HIS BID!!!

THE PEOPLE WRONGLY FORECLOSED ON SUE and WIN THE HOUSE BACK...

The bank still KEEPS THE MONEY from SELLING A FORECLOSURE THAT WAS NEVER THEIRS

And the end result of all this?

The bank that STOLE A HOUSE AND RESOLD it MIGHT MAYBE EVENTUALLY LOSE a SECOND LAWSUIT
and have to REPAY the person they sold the bad repo too... but until they do

the person who got a loan to buy the fraudulent repo is still ON THE HOOK TO WHOEVER THEY GOT THE LOAN FROM (most likely a friend or sister agency to the ones that sold him the illegal foreclosure)

the end result of this is tens or HUNDREDS OF THOUSANDS in legal fees alone for those targeted by this LATEST SCAM ... which is by far not the first. (You guys should really be reading zerohedge and market-ticker.org the mainstream news stations aren't even TALKING ABOUT the TRUE ECONOMIC EXTINCTION LEVEL EVENT worth of fraud that is out there around the "housing bubble")

You don't get out of ANY DEBT by filing bankruptcy now unless you are a corporation ADJENSEN (incorporate and you have MORE RIGHTS and ZERO RESPONSIBILITY... Not to mention the whole fact that you can drive ten or even twelve or thirteen incorporated businesses you own into the ground and not be liable FOR A SINGLE PENNY and still file papers start ANOTHER ONE and get credit again!!)

WHEREAS as a PERSON you get FOOLED into screwing up by tout TV and predatory lending and even when buried to the point of not being able to feed oneself or their family.. and the relief you can MAYBE get is debt CONSOLIDATION... that's right folks we'll give you a payment plan!!!

Now all of this is a result of BANKRUPTCY reform!! because some people were abusing the system...
and when people go bankrupt those losses are spread out among those that do pay and make costs higher... right?
That's what they told us they needed to keep those evil INDIVIDUALS from GAMING the system right?

MEANWHILE if anyone would have looked at a breakdown of how many of the NONPERFORMING debts by RATIO were held by CORPORATIONS which you can start and crash an INFINITE NUMBER OF WITH NO CONSEQUENCE OR LIABILITY....

But those evil INDIVIDUALS gaming the system that's who we need PROTECTION FROM


This is so ridiculous... The answers are simple people! STOP ACTING SURPRISED WHEN YOU BEND OVER AND THEY PUT BOTH HANDS ON YOUR SHOULDERS AND INSERT WHATEVER THE OBJECT DU JOUR IS

you've been talked into screwing your neighbor or the other guy for so long back and forth between republican and democrat middle class versus poor black versus white gay versus straight!!!!!!!!!!

It's amazing really ... there is one solution and it's TO STOP PASSING ON OR TRYING TO DEFER THE HURT and JUST SUCK IT UP AND TAKE THE PAIN... Maybe in the process of hurting REALLY REALLY BAD while we clear the system we'll all have a revelation and realize fractional reserve banking and corporations having more rights and zero culpability is a BAD BAD THING and MAYBE JUST MAYBE we'll be ANGRY ENOUGH TO STOP THIS FROM HAPPENING ANYMORE

Originally posted by roguetechie
You don't get out of ANY DEBT by filing bankruptcy now unless you are a corporation ADJENSEN (incorporate and you have MORE RIGHTS and ZERO RESPONSIBILITY... Not to mention the whole fact that you can drive ten or even twelve or thirteen incorporated businesses you own into the ground and not be liable FOR A SINGLE PENNY and still file papers start ANOTHER ONE and get credit again!!)

Did you get a caps lock key for Christmas or something? Seriously, relax.

And stop listening to talk radio. People can still file Chapter 7 bankruptcy, which discharges your debts (and takes most of your assets, as well.) The Bankruptcy reform legislation you're talking about forces Chapter 7 filers to "qualify" to do so, which is effectively a means test (poor people make out much better,) and is, indeed, intended to curb abuse, which was seemingly driven by over enthusiastic bankruptcy attorneys, who peppered the afternoon television channels with ad after ad, encouraging you to call and "stop the collections!"

Well, there are other ways to do that, and all that bankruptcy filing messed with peoples' credit (often needlessly) and encouraged an abrogation of personal responsibility by making others pay for your poor spending habits.

Like a hammer, bankruptcy is a tool. Like using a hammer to beat in a screw, filing for bankruptcy because you got ten credit cards and maxed them out is using that tool improperly.

Damn those greedy banksters.

Very close, but in this case the word "banksters" really starts with a "W".

I live in Spain and here the banks are making an absolute killing on repossessing and then reselling homes at auction. Especially one bank, LA CAIXA.

They take your home when you loose your job, they sell it at auction, and then you still have to keep paying the difference in prices.

The banks here in Spain are real rip off merchants. I have a loan with one bank, the BANCO POPULAR, i pay every 9th of the month, 212 euros,. When the crisis started here in Spain a couple of years ago, i lost my job and the social security pay you here the 10th of every month,. Subsequently they were 24 hours late in recieving the payment (which was paid into the same account as the loan),and each month they charged me 35 euros in for paying late, I explained that the social security was paid the 10th of the month, and it was beyond my control, but it didnt matter to them.
Here they charge you for the monthly statements they send you, and the postage.
My mobile phone bill comes out of the bank on the 5th, i put the money in the bank at 5.30am of the 5th and when i checked my account the next day, they had refused to pay the bill, and sent it back, which led to vodafone charging me 10 euros more. The bank said it wasnt their fault as the system was automated and the bill was returned at 2.30am, i explained i had the money in the bank 3 hours later, 4 hours before they even opened, but they wernt interested.

The banks here in Spain are nothing but legally authorised con men,