Thursday, February 19, 2009

The latest Spanish bank con!

Various news stories emitting about Spanish banks setting up real estate divisions to take on board their repossessed properties.

Here is the deal, they offer to buy the property off of the client for the amount of the outstanding mortgage.

So even though the client may be only a few payments in arrears, and in most cases has put in 30% at least, plus costs, they are only going to take the house for the value of the mortgage.

Then, they can hold the property for a few years, and sell at a profit, as they have bought them at large discounts!

Plus, for the Spanish regulators and their shareholders, they can call a 350k property an "asset" on their books, not a 350k unpaid debt !!!!!!

As I have mentioned before they are not willing to admit to the problems, even though it is clear how much shit they are really in. They are just playing with numbers to hide the issues under the carpet.

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