Scary stuff

[malagaman2005]

http://www.dailymail.co.uk/news/article ... -flat.html

[Beachcomber]

This is the logical next step for Spanish banks. There have been plenty of warnings about Spanish tax authorities and banks pursuing debtors in their home country and why shouldn't they?

I have to say that I find little sympathy for someone who has a large mortgage in their home country who then takes out an equally large mortgage to purchase a holiday property in a foreign country.

I remember a notary from years ago, at a time when taking out a mortgage to purchase a property in Spain was the exception rather than the rule, who said 'A mortgage is the the grip of death'.

[malagaman2005]

Totally agree. This just may put to rest all the rumours that have been circulating on numerous forums by 'barrack room lawyers' that all you have to do is walk away from your property if you can't manage the repayments, clearly a precedent has been set.

[Beachcomber]

These are probably the same 'barrack room lawyers' who deride people for paying their non-resident taxes. A well-known local one has just got his comeuppance because he has received a demand from AEAT for four years of tax declarations either as a resident or a non-resident.

Many properties have fallen into negative equity and the amount for which the bank could sell a repossessed property often falls way below the value of the outstanding debt so it is obvious that they are going to pursue the debtors by whatever means are available to them.

[Julie]

Surely they can't be surprised that the bank would want to get its money, thats the risk you take if you live above your means, everyone could have a home in thier own country and abroad if they didn't have to pay for it !

[Jim Allen]

Hello
Its right that everyone should be responsible for agreements they enter into.
However this sinks of hypocrisy on behalf of Spanish Banks.
Whatever the legal and moral issues if they are allowed to enforce this form of legal action then they have must abide by the rules in Spain as well when they enter into an agreement and Bank Guarantees must honoured .
All agreements and enforcements must be honoured both ways.WE cant be expected to have a one way justice system

Sorry this stinks.

Jim Allen

[Beachcomber]

I would have thought that the time and efforts of Ashley Fox, the MEP quoted in the article, would be better employed in fighting for the rights of purchasers of Spanish properties who, largely through no fault of their own, now find that their properties have been declared illegal rather than people who get themselves into financial difficulties by taking out mortgages that they are unable to repay .

[Jim Allen]

Hi
Yes true in some ways but no one predicted this mess the World has got into of late.
The point here however is Spanish Banks and the fact that they can just pop over here and enforce action in the U.K and our law allows that.
However Brits have no such rights in Spain as the law is ignored and abused.
Takes a lot to make my blood boil but just thinking about how many poor souls that paid deposits with the promise that deposits were covered by Bank guarantees which are proving to be worthless .
If this is to be a fair E.U membership the basics must be followed by all at the moment both the law and the Banks in Spain are just making a mockery of us in the U.K


Jim Allen

[Bongtrees]

This couple were idiots for taking on so much debt but by not standing with them the Spanish Banks and government will continue with their cavalier behaviour to ALL customers/residents.

Laws are ignored and abused in Spain, of that there is no doubt so why is there not a groundswell of action against the government and or banks? Getting support from one or two overpaid MEPs is just pixxing in the wind. Are people too afraid to protest? Our lives will not improve until governments, banks and town halls are ripped apart and corrupt and lazy leeches kicked out.

[julian]

"Yes true in some ways but no one predicted this mess the World has got into of late"

neither did anyone predict that in the years of boom the spanish property prices would got up at such a crazy rate...... no one in those days went to the bank and said that as they had made so much profit from selling their spanish property that they would like to pay the bank back more than was agreed in their mortgage contract.
so why if it is now the reverse should banks have to lose money and not try to chase people for the money owed to the bank?
a mortgage is no more than a contract where the bank lends a certain amount of money and in return that has to be paid back over a certain period of time with interest ....and the bank wants and expects the contract to be complied with just as the property owner wants the bank to comply with its side of the contract, which it did by turning up at the notary originally with a cheque for the amount of the loan at the time of purchase.

[gus]

More "woe is me" from the Greedy brigade!

They have a £300,000 cottage that they have lived in for 20 years........yet have a £250,000 mortgage on it??????.......and then a further mortgage in Spain?? That sounds like "living beyond their means" to me.
Notice , they are not out of work so who the h*ll did they expect would service their loans??

[markwilding]

I have to agree with Beach and Julian on this ...
Jim, it makes your blood boil because of the double standards but surely there's double standards with the reporting too
The Daily Mail doesn't mention why the couple have had difficulty with the repayments so we can only speculate why they can't.They are both still in work so it seems they could have taken on more than they could afford.I can't help wondering how the Mail would have reported this if the Bank were English and the couple were Spanish and it was a house in England they had problems with.

[El Cid]

People were taking out big mortgages on Spanish property under the assumption that they would appreciate 50% in a few years and then they could walk away with the profit.

If that did happen, the bank, which was taking all the risk, did not benefit from the gain that they financed. People were happy to accept this one sided situation.

When it goes *beep*-up they expect the bank to take the loss!

I think it absolutely right that they should be chased for the debt - if they lose their UK house as a result then tough!

Sid

[Jool]

THre aspects of this that worry me the most are in this paragraph - for there to be no obligation to advise you of legal action against you or your assets? My italics and bold

An EEO is meant to be used for uncontested claims in civil cases across EU borders, but evidence has emerged that Spanish officials have stretched the meaning of ‘uncontested’ to allow banks to fast-track claims on UK property.

Yesterday the UK Ministry of Justice insisted the ‘originating authority’ in Spain must certify that the defendant has agreed to the claim or had the opportunity to object to the EEO.

But in Spanish law, a buyer taking out a mortgage gives up the right to contest the debt, and this is taken as evidence of agreeing to the claim.

A spokesman for Viviane Reding, the European Commissioner for Justice, confirmed there was no obligation to notify debtors. He added that ‘in principle, no appeal is possible’ against the issuing of an EEO.

Read more: http://www.dailymail.co.uk/news/article ... z16bYUy65m

[frank]

I also agree they appear to be living well above their means, their combined wages must have been used to service their huge mortgages, so not much compassion here either. However, it seems they paid the mortgage since 2004, it was last year that they defaulted. So it hasn't really taken the bank long to persue the case, given the horror stories we hear of Brits in Spain seeking justice that are waiting many years for any case to even come to court. Have the Priors received their promised money yet? I agree the bank should get their money back, it would just be nice for those waiting settlement to have their cases dealt with in a similar time period.

[julian]

"it would just be nice for those waiting settlement to have their cases dealt with in a similar time period"
thereby making the banking system here collapse quicker ? good plan

[Jim Allen]

Hi
I have not said anywhere that the banks are wrong and yes I agree with anyone being chased for not paying.
This is simply that the Spanish banks should also be accountable for the guarantess they enter into and they are not.
Anyone that has lost their deposit on a property that hasent been built or finished and the guarantee to protect their deposit is worthless would understand what it feels like and how hopless it is getting justice .
Its simply is not right that this should only work one way.

JimAllen

[Bongtrees]

Have the Priors received their promised money yet? I agree the bank should get their money back, it would just be nice for those waiting settlement to have their cases dealt with in a similar time period.

At the beginning of this month a judge ruled that the Regional government was legally within its rights to seek the Priors demolition. read it in the costablanca news

[Jool]

But the Priors should get compensation from Vera Town Hall as they are deemed to have been at fault......but the Priors are far from alone

I agree with Jim and Beach, it seems the banks have it all their own way and no one calls them or the government to account or expects them to meet their legal obligations, only the poor person at the end of the line who is forced by legally abusive processes to pay up...........

[knowal]

Sorry, but the Chattertons obviously paid no heed to this:

WARNING:
If you default on your re-payment you could lose your home.