Banks settling with properties

Legal tip 602. Banks settling Out of Court 
26 September 2011 @ 07:50 

Would you accept? 

It's very difficult to work with banks and it would mean a lot of negotiation on each development, manager, head office - it can take up to 12 months to get anything signed off or agreed and that's even with the support of a local manager.

Also banks want a lot of money in addition to what has already been paid so it's not a great solution.

Maybe if banks started losing more cases then they might move quickly to do deals.

Also they do not make commercial decisions.

Hi María

It may work for some (maybe the minority) - but definately not for all.

Take for example the Finca Parcs Action Group - the houses are almost 4 years late.  On many other developments the delays are even greater.  People do not live forever.  Their lives have moved on.  They may have already purchased an alternative property in Spain or another country.  Or they may feel so 'damaged' by the whole situation both physically and mentally that they would never ever buy a property in a foreign country again.

Unless you are a victim you can never know how it feels.  It consumes every waking hour.  It affects your health, family life etc etc.

Banks should be settling valid claims - with or without Bank Guarantees - out of court - IN CASH WITH INTEREST AND LEGAL COSTS.

The Banks are the root cause of the problems with their reckless real estate lending and total lack of professional due diligence.  They were massively negligent.

The Banks are the Guardians of LEY 57/68.  They abused that status.  So they are now the Devil.

But now they are the Devil In Disguise - in a disguise dressed up as a Real Estate Agent.

If the Banks are allowed to off-load all their repossessed properties on the innocent victims of Bank Guarantee Abuse then they will have got off very lightly.

In my opinion the Banks are more guilty than the developers.  The developers and promotors are just crooks but the Banks are professional entities supervised and regulated by the Banco de España.

They have abused their status and deliberately worked in collaboration with the corrupt developers to steal innocent purchasers money.

Our inalienable rights granted by LEY 57/68 have been violated.  Our health and family life has been damaged.

It is impossible to put a price on that.

Kind regards

Keith

Hi Keith:

I wish we could achieved those results soon enoug for people to feel rewarded but, Court cases are so slow, that I have been thinking that if Bank honoured it out of Courtsit will be brilliant.

I can see them settling more if the claimers, once their trust is regained, want to buy one of the properties in their portfolio but, of course: it is not: it is not a solution for all. Just for those willing to accept a quicker settlement.

I fully understand and endorse the perspective you are giving to the problem and fully believe that Bank of Spain should have regulated this on time.

We will keep on the fight. Gaining energies from our clients´support. It is not being easy.

Kindest as always and thank you Keith always for your brave and determined fight for Justice.

Cheers!

Maria 

I cannot see banks giving credit for sums previously paid.

So if you have paid EUR100k deposit then you can take any property listed at that price by the bank.

Dream on - that bank will want another EUR100k on top.

Hi Keith, I agree with you totally, Banks are thieves, leeches, pariahs. We have won our case, deposit plus interest plus legal fees. It has taken 5 years but we won our case only to be told the bank won't pay us our money. You are right when you say it consumes your lives, 5 years of daily waiting for an email from the solicitor, we might be only one of their many clients but we wait and wait and wait. In your sixties, 5 years is a long long time, in fact a year is a long time. During the five years wait when we should have been enjoying our home in the sun spent with our visiting relatives and friends we have seen 3 close relatives die quite suddenly - only in their sixties, and several friends suffer serious illnesses and without being over morbid, you do start to look differently at the years of waiting and wonder if you will ever solve the problem in our lifetime.  We seem now to be looking at how we can write this scenario into our will, ie outstanding money owed in Spain, a deposit on a house we no longer have any claim to, a judges ruling to ?? Bank. We don't know what we have, or haven't as the case may be. It is easy for those who have not been through what we have suffered to just say write it off, but it is difficult, so we just put our faith in God and our solicitor and hope that somehow justice will eventually prevail, and to see the other side of the coin that Maria puts forward .... yes at least a property would be something to enjoy for a few years and something tangible we could leave to our children.

Sorry for sounding morbid, but after a day of further family illnesses I am allowed to feel a bit down, but God willing not out.

 M11block: lots of encouragement to you from here! Please count with us!

 As one of Maria's clients who has been waiting a long time for a return of the deposit I would be delighted if Maria could get the compensation in the form of a property.  I know in an ideal world she would be able to get the money back with interest, but I suspect it will still take a long time to get to that stage and I've already been waiting nearly 3 years. In spite of everything I'm still interested in having a property in Spain. 

Any property would have to meet my requirements though and if the bank expect me to put in a substantial sum (like the 100,000 euros Faro suggests) the case against them would continue.  I would have to feel I was getting a good deal. The problem with that is I don't think anyone has ever got a good deal from a bank. Maybe Maria can change that!

We are working with a great team of property consultants, who already have agreements with Banks for the change to happen Cardifflan. Please email us so we can start working on a proposal for you.

Any other one?

 http://www.eyeonspain.com/blogs/costaluz/6091/legal-tip-595-bringing-life.aspx

Hi Maria,

This sounds like a good idea and i would like to hear what kind of deals might be offered. Count me in.

Regards,

Paul

Hi Maria,

You say "Court cases are so slow, that I have been thinking that if Bank honoured it out of Courtsit will be brilliant. "

But  I'm also reminded of a recent quote "If you got rewarded for failure would you change? "

Surely the answer is to address the source of these problems relating to non enforcement of law, the incompetence of the justice administration in Spain, the unaccountability of the Banks, as these are all facts that are compromising Spain in the wider eyes of the general public and will continue to do so until true justice prevails.

This form of dealing, if not careful,  is effectively legitimising a terrible system where Banks are not made accountable for grand  theft of monies and also , if not careful, could result in a two tier system where the Banks will continue to be obstructive (if not more obstructive) to those unwilling to "deal" in this way.

What we need is a fast track process for refund by the Banks to alleviate this paralysis, and then let people decide what to do with their monies. Purchasers should not feel pressured to "deal " with Banks, in fear of them failing in their lawful obligations and with all the continuing insecurities relating to lack of consumer protection in Spain. (I'm not suggesting that you are pressuring, but this would be the outcome if a two tiered system was to prove a reality).

Banks should be pressured to respond with recompense, and respond quickly if they want to bring life back to Spain. It is for them to demonstrate this willingness, not innocent purchasers caught up in this catch 22 scenario.

The whole body will only heal, as you put it, when the Banks recognise and meet their lawful obligations. I would suggest that only then will some faith be restored for those who wish to reinvest.

'Well said, Keith and Ads'

 You have both  perfectly and clearly outlined my mood for not wanting to 'Do a Deal' with the banks.

Whatever   they offered   would not cancel out the years (6) of   stress and upset they have created for  my retirement years. As Keith points out, until you have gone through it you cannot begin to understand the depth of the distress they have caused people.

Ads is right, in that this kind of solution is no solution at all. It is merely papering over the cracks and encouraging the present system to flourish.

I'm pleased and grateful to have two such people batting for my team.

Maria, all I want is my deposit returned along with such compensation as my contract stated. Plus, I would like the fees for the lawyer I was forced to engage because the developer refused to pay me and, so far, the bank has failed to follow a judge's decision by honouring my bank guarantee.

I can then use MY money to purchase or not a holiday home wherever I choose.

Dear All,

I suggested this sort of scheme a long time ago and was condemned.

My position may not be unique, I was investing directly for inheritance purposes, something to pass on for family holidays. It was hoped to be a way of making limited life savings go a little further, not to go into professional thieves pockets.

The property built and offered at Casares del Sol was nothing like the brochure promises and was not on a secure holiday complex with every possible luxury facility to a new highest standard never seen before.

It did not fit the bill in any way and as seen was only worth the 30% deposit for someone who might want such an ordinary urb' apartment.

As Faro says it may be difficult but if there is really any chance of such honesty in Spain I would be more than happy to consider it.

I may be very "thick-skinned" but do not really wish to give the abusers here any more amunition to accuse me of leaving my brains on the plane again.

the guarantees would have to be "cast iron" with all expenses covered.

Regards

Norman

 Ads,

I fully agree with you. Banks need to compensate. That is the main line. Their careless, illegal behaviour has been the main factor of the mess ( not the only though)

But there is  some people who wants to settle out of court and avoid the length and stress of judicial procedures.

I can endorse the two positions always provided Banks aknowledge and respond according to Law 57/68.

Maria,

Could Bank's liquid assets be frozen if they refused to meet their legal obligations according to Ley 57/68, without having to go to court?

Dear Ads,

that sounds like a brave new world not yet here.

perhaps even an appeal to a deity of some kind.

hardly pragmatic.

But never mind me dream on.

Regards

Norman

With reference to Law 57/68 it needs clarifying perhaps. 

As far as I understand it, according to law 57/68 no-one should have to go to court since the Bank Guarantee is like an insurance policy that you claim against under specific conditions. As we all know however, Banks are refusing to honour this "insurance" agreement, therefore in straight forward cases where these conditions are clearly met, why shouldn't Banks who refuse to honour this agreement be forced to do so by freezing their assets? Why should innocent purchasers who meet this specific criteria be made to go through lengthy (and costly) legal routes to pursue what should be a straight forward claim?

Obviously there are situations that are more complex than this, but in straight forward cases there should be no get-out by the Banks. It should be (and was intended to be from the outset) a simple procedure to protect offplan purchasers from abuse.

 Is this correct Maria?

Is it possible that Banks can be enforced to return monies by freezing of their liquid assets according to Law 57/68 if they refuse to comply to this law?

Dear Ads,

lateral thinking......thinking out of the box etc!!!!!!!

who would be the enforcer?

could you just go to the bank...... fill in the complaints book.............go to the Bank of Spain............fill in the complaints book

then to the police station and do your denuncia.................sit back and wait for the police to return your money????????

how do you see it working?

Regards

Norman

It would work according to Law 57/68, hence my query to Maria about the legal scope of this law and whether Banks assets can be frozen if they refuse to comply with this EXISTING law?

 No enforcement of assets of anykind, of anyone, can be done without a previous judicial procedure and judicial order.