I want to speak about the Spanish case where the Nonrecourse Debt doesn't exist, that is to say, in addition to the misfortune to lose the home, acquired by bank, you incur a debt which pursues you the rest of your life. Which means that if some day, you have new properties, salaries or money in some bank, it would be seized via judicial.
Some citizen platforms have been constructed to fight against to law in this regard.
There are people who are caught because of they can't sell their homes because they would receive less money that the necessary amount for paying the mortgage.
The Spanish government and the Europeans economic authorities have helped banks to avoid its crash, but who helps the families?
Besides it's unbearable to know the amount of finantial scandals and corruption in relation to chief executives of banks and politicians.
And now, a little political parties is taking the chance to grow by selling us that they are going to change everything. We think that the governments are more honest in other developed countries.
The economic crisis due to [] [m]ortgage [s]ubprime [l]ending IS WELL KNOWN, specially in THE USA and Europe. It's well known that(1) a lot of people have lost their homes, INCLUDING THE removAL of the occupants by evictions.
ReplyDeleteI want to speak about the Spanish case where the Nonrecourse Debt doesn't exist, that is to say, in addition to the misfortune to lose YOUR home, acquired by THE bank, you incur a debt which pursues you the rest of your life. Which means that if some day, you have new properties, salaries or money in some bank, it would be seized via judicial ACTION/ORDER.
In this procedure, the bank recovers part of its money by auctioning the home for half [] price according to law, the debtor, WHO USUALLY HAS NO MONEY, has to pay the rest of THE debt.
Some citizen platforms have been constructed to fight against THE law in this regard.
There are people who are caught because [] they can't sell their homes because they would receive less money THAN the necessary amount for paying the mortgage.(2)
The Spanish government and the EuropeaN economic authorities have helped banks to avoid A crash, but who helps the families?
Besides, it's unbearable to know the amount of finanCial scandals and corruption in relation to chief executives of banks and politicians.
And now, a FEW political parties ARE taking the chance to grow by selling us that they are going to change everything. We think that the governments are more honest in other developed countries.
(1) "It's well known that..." is OK; "It's well known [noun]" is not.
(2) We say that they are "under water".
Seems like a strange system. Why must the bank sell the home at half price? It does seem better to have the banks carry some of the risk. This keeps them from making dumb loans, or at least makes them suffer for doing so.
I'm afraid that I have not explained well.
ReplyDeleteThe property is auctioned by the court and in that auction, the bank usually come alone and the bank buys your home for half price because of it is the minimum that the law sets for auctioning. The rest of debt must be paid by debtor.
Besides the bank can make more money by selling your home.
Probably the problem is the power of the banks here, because the laws benefits them clearly
ReplyDelete