Banks who made the mess... need to restore now

Ask your Spanish bank if they have got a good deal for a house in Spain.

Dear Maria,

I was vry interested in your article re buying from the bank at a discounted price inlieu of getting your money(in our case bank guarantee) returned.

As you know we arestill awaiting the return of our deposit from the Bank Of

galiciak  Our solicitor has assurred us that our case has been won in the courts as the bank did not contest within the time allowed,  We very much want to spend a major part of our latter years in Spain.  Do you know if the Bank of Galicia are interested in this type of venture.

RFegards.

rosegreen

v

Dear RoseGreen:

I cannot see thet offer by Banco de Galicia, but it might be necessary to contact the Bank directly.

I seriously think that, together with the cheapest way to buy properties in Spain, it is the rightest way for the market to react now.

Best,

Maria

Come on... more comments needed here.

Maria

Though I usually support Maria and still will on most issues, I have to say that this is a disgraceful situation. It is a crime that the banks should be propped up by governments which is our tax money.  It’s not only that the public borrowed. The banks pushed and never once advised that the interest rates could reach such a height. They are making millions out of this situation whilst so many people are losing their homes and all the money they paid as a deposit, the notary and lawyers fees and the payments that they have struggled to make to date. Even more disgraceful is that these properties should be sold to bank employees and buyers from abroad at a reduced rate. These same banks are refusing to assist the very people that have paid for these properties. Remember there are more people losing their properties becoming homeless than there are buyers. The crisis is no accident but orchestrated by the main banks that lend to the smaller banks. Once again we are accepting another crisis. It’s the ordinary people that pay the costs.

Dear Myra:

It is a pleasure and a honour  to have you contributing to this thread. Thanks a lot.

I think we agree at the end of the day.

My real  point is that the unbalance that was created by the financial sector into the Estate  arena needs to be corrected by them, deflating prices and renouncing benefits.

Houses will be available to much more people adn even those who lost their homes could start thinking again maybe through renatl with option to purchase.

You know I am redically consumer-oriented. It is a good way to contast some bad effects of a fierce capitalism.

Best from Algeciras... by the way... why do not  you come and visit us... I would love to introcude you to the rest of the tam you did not met in Sabibillas last year.

Maria

What I do not understand is why the Banks have to reposess a property when someone falls on hard times such as this current credit crunch and loses their job and cannot keep up the repayments. 

If they have kept up with the payments on a mortgage with no previous problems then surely it is better for all concerned for the person to stay in the property and either pay a reduced amount each month or have a total payment holiday for 6 months or even a year.  What good does it do to reposses the property and then sell it at a greatly reduced price?

Instead of governments pumping money into the banks to prop them up, why not give the money to the common citizen to pay off their outstanding mortgage debt? 

This would give the banks the money they need to survive, leave the homeowner with no mortgage debt and therefore more disposable income to spend on goods and services thus keeping people and companies in work.

The first poitician that puts this forward as a solution will definitely get my vote.

Kel

Kelju: I am fully for mortgage vacation... of course and I think your proposal  is a very sensible one.

Anyhow, in those cases ( maybe of second residency purchase) a voluntary  dation in payment is also a good relief for many people. You give the house back to the Bank and forget about the loan. No negative reports iin creditor´s databases. You are meeting your debt risponsably.

What do you think?

I cant see the Banks doing anything in the short term.

My feeling is that they are building up their reserves with the billions being pumped in by Government. Interest rates are 0.5% loan rates are still 7.9% if you are lucky or even as high as 19.5%. Credit cards still have interest rates over 14.5% and many mortgages are still over 3%, what an amount of EXTRA money that is. All organisations owned and run by Banks.

In Spain, I fee the Banks are a bigger rip off with mortages, in many instances only being reviewed every 12 months or so and the rate may have gone down in that period to say 1%, but you may still be paying 5.5%, but when it comes time for your review, then it is back up to say 4%, so for 12 months you have over paid and there is nothing for you.

Toxic debts, what are they. My understanding is that they are loans which have been given to those who may not be able to pay them off, the client may still be struggling to pay, but that client falls into a category who MAY not pay. So, because the Banks tried to help someone they should not have helped, they MAY and only MAY come unstuck, so have they classed them as debts instead of projected profit.

It is amazing how these Banks made Billions last year, but when the crunch came they made a loss, then when the money bailed them out, they made billions again.

To me, and I am just a local Joe the Plumber, who tries to make an honest living doing what ever he can to keep food on the table, thinks, that we have been had. The Bank of Englad should have said, TOUGH, if we bail you out, we take you over and Nationalise you. Everyone and I mean everyone will apply for their jobs to work for the National Bank, no favouritism for Sir Ivor Quid who may be the Chairman of one of the Banks, time on the dole would do him good, we do not need all these over paid so called Managers with no qualifications in Banking, but just went Eaton.

I will shut up now before I go on to far - oh I have done already.

Dave