Facts on Bank Debts to Communities

 The General Spanish Council of Administrators Colleges (CGCAFE) has sent a formal letter to the Spanish Banking Association (AEB) to urge his associates (banks) to take urgent measures and comply with the law. Last data amounts an outstanding debt from banks and cajas of 225 M. €s

http://www.elmundo.es/elmundo/2013/01/11/suvivienda/1357895558.html

Hello Jacksonadmin

Interesting news, I'd like to see the article in El Mundo but the link you added doesn't seem to be correct, can you check it?  I'm looking through El Mundo but can't find the article.

thanks

Hello again

I found the letter on CGCAFE website http://www.cgcafe.org/pdf/Carta%20AEB%2008.01.2013.pdf

Let's hope it has some effect.  Thanks for pointing it out.

so let me get this straight so i understand it.

as i understand it when the bank reposseses a property they just forget all about the community fees owed.

as they become the owner they are liable for all new community payments until its sold  and  for the past *year?*

but they dont pay any back payments or the current ones.

yet they show prospective buyers round the community and show them the clean pool and freshly painted building as a selling point.

as to which they do not contribute in any way.

is that right?

Mungry;

The statement that you make is very true. 

How ever the administrator has the power of the community to recover the fees they owe through the law & must proceed diligently to his job to recover these funds for the community in the quickest & most cost effective way ( see past thread).

Regards

F.Parkinson Administrador

Mungry,

As I understand it the bank, like any other new owner, becomes liable for paying current monthly fees as soon as they become the owner (which I believe in law is when the title is changed at the land registry).  They are also liable for any fees debts on the property, again like any other new owner, for the current year and the previous year.

This is why of course when buying a property any prospective owner should check that there are no outstanding debts attached, if the property is on a development run by a community the inquiry can be made to the community administrator. 

In the case of properties accepted as dacion en pago I believe the bank is liable for the whole debt and most banks insist that fees are paid up to date before they will agree this, for some reason our bank has a few properties taken back under dacion en pago with fees debts outstanding, and which are in debt for fees right back to November 2010.

In our case the bank is already advertising 6 properties for sale on their website.  I have written to ask how they can sell these properties a) with debts attached and b) on a development which cannot even provide basic services because of fees debts which of course include the bank's.  Their debt currently stands at €52000 which is no joke when we are struggling to pay for basic services such as civil liability insurance and communal electricity.  The reply I received, last October, insisted that they were 'working towards making payment' and that 'their interests are the same as ours', which has a slightly hollow ring right now.

but these are spanish banks

and with spanish banks and often spanish people the payments are always one way.

to them

*based on 10 years exerience living in spain dealing with spanish, english, russians, italians and germans*

so the money is 99% written off with a 1% if that chance of getting it.

 hosilverlining stated that the bank becomes liable as soon as they become the owner.

But as I understand it, IF they either repossess or accept the property back they may not actually re register the ownership for quite some time, it is in their interests not to be seen as owner and may possibly try to sell a property straight on without re registering in their name.

All very well the association of Administrtators asking banks to fulfill their obligations but there is nothing to enforce this statement.

Yes administrators should chase banks or other debts through the correct procedures but all legal action and amounts to collect have to approved at an AGM therefore debts can be quite historic before legal action can be started.

We are still told our local courts are 2/3years behind hearing cases, so I have every sympathy with communities who are on the breadline and fear this may happen more and more as more properties are handed back and banks yet again fail to fulfill their obligations.

 Interesting!  Please Jacksonsadmin, keep us updated on how Bank of Spain answers to this.