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Wednesday, April 09, 2008
Smiley
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In the light of the current global situation regarding mortgages and the fact that so many properties have been bought in Spain that have been completely financed through mortgage - i.e. less thorough lenders checking to ensure that the loan does not actually exceed the purchase price - many lenders are now requesting sight of proof of deposits paid. To wit prior to acceptance in some cases or prior to offer you may well find the mortgage lender requests proof of deposits to ensure that the buyer is risking some of their own money and not simply gambling with the mortgage lenders money. So far this is not happening with every lender but more and more of them are insisting on it so it will probably become the norm. All part of Spain cleaning up its act to ensure buyers dont feel they can just walk away if mortgage payments become too painful. To be honest this has been a long time coming as so many lenders have been caught out by unscrupulous agents and developers alike (even "mortgage brokers") using incorrect paperwork and fraudulent valuations to confirm the price of the property paid. Consequently there are banks here that have financed not only the purchase price but also the purchase expenses and a Ferrari and a 911 on the drive as well - that last illustration is fact - quite a while back but fact nonetheless - many many people have bought here as well raising three or four years mortgage payments through the original finance (obviously more costly properties) just based on the value and now looking to refinance but no provable income now so caught between a rock and a hard place.
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Smiley - patrick@marbellamortgages.com www.marbellamortgages.com
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