Still an effort by Banks is necessary but...we, lawyers, could greatly help to have the estate market resurrect and live. Very possibly, the effort by Banks whis is needed will come along as soon as the "bad bank" is born.
How?
I was offering this possibility to our russian friend , who is trying to help our clients sell their properties to russians:
As they are properties being handed over to banks as dations, and we try to do these efforts in conjunction with the Bank and, when doing do, we try to find a buyer for the property, I was thinking...
If Banks were open to apply a reduction on pending mortgage, these properties will go out to the market at prices which are really attractive to new buyers and realistic with their possibilities.
Again. Very possibly, " the bad bank" will help this to happen. It will make the real estate market to get back to healthy hands: buyers and sellers in market, and to finish with the death of this market as far as it keeps being in hands of banks looking firecely just to their balances... come on!!
This way, again, all parties will end up being benefitted:
- Mortgage debtor: He finally gets out of the debt
- Bank: He gets a new debtor in charge of the mortgage loan instead of a house he has to sell
- Buyer: He obtains a house at same conditions as if he waited to the public auction in Courts, with the possibility of inspecting it before buying it.
It is true that the bad bank" will finally make all this to happen more quickly. No way... if someone needs to lose more to get out of the crisis this is BANKS.
That losing will help also to have them changing mentality and philosophy again.You cannot build gains being far to society.
Previous posts on dation and balance:
http://www.eyeonspain.com/blogs/costaluz/7686/legal-tip-822-dation-and-balance-iv.aspx