EU ruling.....shaking off your Spanish mortgage

[fifi]

http://elpais.com/elpais/2013/03/11/inenglish/1363026600_869565.html?rel=rosEP

[PeterHeirman]

If this ruling passes then who will pay for the cost of the mortgage ? The Spanish banks don't have the money - thus the ruling would put the banks into problems. Banks normally win over people.

[fifi]

I suppose it could work like one of the types of Dacion en Pagos Peter, where the bank agree to take the property back for the amount owing on the mortgage with nothing else owing therefore saving both parties the expense of going to court. I read last year that they were trying to allocate most of these types of Dacions to Spanish residents because of the huge demand for them.

[PeterHeirman]

@Fifi: the banks have already too much properties. So what to do with all these properties on their balance sheet ?
These banks need cash to go and play in the financial casino on Wallstreet (much more fun than all these mortgages and common people who can't pay).
banks want to sell the properties as fast as they can. I guess this will result in more properties going into the bad bank or they will decrease the price of real estate significantly like in Ireland.

[fifi]

Yes the Banks have far too many properties on their books,  but at the same time they were giving out 100% and more mortgages  when times were good.  They also falsified valuations inorder to help people to obtain a higher percentage loan. They had everything in their favour for many years and are now being sued left right and centre all over Spain by businesses and individuals because of their various abusive clauses in mortgages and other types of loans. I read that the idea behind this is to allow  individuals who lose their homes to be able to make a fresh start. I am looking forward to seeing what happens tomorrow.

PS....Dublin house prices are rising I am glad to say, but ever so slightly.