Spanish bank eviction policy - repossession insanity

[poker]

Seems 119 suicides in 2011 from evictions .

HERE

[Janet]

Of those, it has to be acknowledged, many are people evicted from rental properties for non-payment of rent, so not the banks. Having said that, of the rental evictions, quite a few are public rentals, so they've been evicted by the authorities, not private landlords. In some cases, the very authorities that are making quite a bit of noise about how much they're doing to stop bank evictions ..... 

It's all absolutely awful, of course ....

(what I find really interesting is the suggestion in the headline of the self-censorship in the media about the number of suicides - over 3,000 - caused by the crisis generally).

[Janet]

At last, something in English about this woman ...

Ada Colau: Spain's anti-eviction crusader

[Guanche]

It would be interesting to know what the historical figures are on evictions both mortgage and rental. Much is said about the present unemployment rate in Spain. Now I'm not sure where I read it but the unemployment rate in Spain has always been appalling even in the boom years. Is that the case with evictions?

[Janet]

I don't think so G. I can't back this up but I think it's true that evictions are now at record levels because the financial markets broke the banks and the banking system ... interest rates rose, banks went bust and were absorbed into other banks which "restructured" people's loans with no reference to them ...

As Ada herself says, when she first started, she expected a few angry people to turn up. Instead, she had a flood ... and they weren't angry. They were embarrassed because they "knew" it was all their own fault. They had been told so. Their desire to live in a home and take legitimate loans that were thrown at them by thieves who then turned into wolves and bankrupted them and threw them on the street ... that desire was "the root fault" of Spain's problems.

As Ada colourfully says ... vete a la mierda ... "Fuck off" to the non-Spanish speaking ...

[Delderek]

I agree evictions are awful, but perhaps we need to flip the coin here. What if you are a landlord and your tenant is not paying, and you have a mortgage to pay. We all know the Banks are crooks, but if you invest with them, can they keep releasing people from paying the debts and at the same time keep paying interest to the depositors, I think not, the whole system would collapse. I haven't got an answer. But it can't be as easy as "not collecting the debt"

[Janet]

but it's part of a system Del, that has been broken by the financial and political masters of the country. People have taken mortgages and then lost their job because the country is in the devil of a mess ... and then that same system won't let them hand their properties back to the bank. Oh no, they have to hand them back AND walk away with their mortgage still to be repaid.

What sort of fucking system requires them to keep paying a mortgage for a property that has already been repossessed, and out of which they've already been thrown? How the hell are they supposed to find somewhere else to live? And how could they afford it even if they did find somewhere ...

When the system treats people like that, don't expect people to behave "decently" ...

If the state wants responsible citizens, it has to treat them like human beings, with work, a decent wage, and a chance to get out of debt honourably, and the right not to have to sleep in the fucking gutter ...

[Delderek]

but it's part of a system Del, that has been broken by the financial and political masters of the country. People have taken mortgages and then lost their job because the country is in the devil of a mess ... and then that same system won't let them hand their properties back to the bank. Oh no, they have to hand them back AND walk away with their mortgage still to be repaid.

What sort of fucking system requires them to keep paying a mortgage for a property that has already been repossessed, and out of which they've already been thrown? How the hell are they supposed to find somewhere else to live? And how could they afford it even if they did find somewhere ...

When the system treats people like that, don't expect people to behave "decently" ...

If the state wants responsible citizens, it has to treat them like human beings, with work, a decent wage, and a chance to get out of debt honourably, and the right not to have to sleep in the fucking gutter ...

I believe that has recently changed, and some banks now allow you to simply "Walk Away" I know of two recent cases where this has happened. Perhaps our banking expert on here can advise. (after she has fed the little Piggies of course)

[Janet]

yes, this has happened, but it's at the bank's discretion ... and the government avowedly supports banks refusing a dacion en pago where the mortgage is cancelled as part of the handback ...

Mortgage legislation in Spain insists, indeed, that the debt remains with the customer even after repossession, and only last year the government made a formal statement that these mortgage rules would stay in place. The government said, in fact, that the rules were "impossible to amend".

After riots in the streets, a couple of repossessions have been granted where the mortgage has been wiped out in the process. It remains to be seen whether this becomes widespread ... but it is not supported by law ...

[Guanche]

I know of one example where a house was repossessed but the bank and the person involved came to an agreed figure that had to be repaid. Now I'm not saying this is right but it would seem there is some room with some banks to negotiate.  Whilst I agree the banks should bare the heaviest burden for this problem, some of the problems must fall on the people who went to the banks in the first place with unrealistic needs. If someone went to a bank and bought a house for €1000 but borrowed €1500 and two years later defaults and is evicted owing €1490. The house is sold for €490 due to the 'crisis' who pays the €1000, not to mention the interest? Whats being said is that the banks pay OK, but in reality I pay, we pay everyone who wasn't over ambitious or unrealistic pays, because you can bet that the banks won't lose or will the government allow the banks to lose.