In the United States a person can buy a house and ask for a mortgage loan to a bank without problems. If with the time difficulties arise and the owner cannot face to his obligations with the bank it has it so easy as to leave the keys in the office and to go away to live to one of these trailers that we see in the movies. Nevertheless, in Spain, going away to «to live under a bridge» is not so easy. That you go, insurance, but you will keep on owing money to the bank and this one will be in charge of receiving it from you. This is a measurement contemplated by the Spanish mortgage law, one of the laws that more straight affect us, but that any more we do not know. Has anybody fixed in the meaning that has the phrase «loan with mortgage guarantee»?
It seems that this modest preposition, with, does not pay very much the attention. In fact this week the newspaper El Pais, in an article he was gathering critically the practice of the banks in certain cases of sequestrations. According to the article the banks force the clients with problems to pay the difference between the current commercial value and the purchasing power of his mortgaged housings. Namely those who cannot keep on paying his mortgages, in spite of the sequestration and of losing his house, keep on owing money. And the fact is that in fact, the Spanish law establishes that that one that requests the loan must answer for him and that the mortgage, the housing, is an only one guarantee. If, at the moment of crisis when one proceeds to the sequestration the house has lost value and does not sell in auction for the amount of the debt, the borrower must keep on answering with the patrimony that it should have until it covers his loan.
This aspect, now it surprises many people and there are dramatic cases that wake up our solidarity, but: of whom is it the responsibility? Obviously, of whom he signs the loan that should worry about knowledge what he signs before doing it as he gathers the Civil Code. Another thing, the fact is that in practice the current people do not go with a fixed lawyer of the arm all over and that he ignores it. Morally let's be able to think that, both the bankers and the notaries, must explain it to us before stamping the signature that ties us to one of the most important obligations of our life.
This crisis should teach us more financial culture to the clients and more transparence to the professionals.
- To do a trackback to this article, it uses this linkage
- To continue the comments of this article for RSS, it uses this linkage
We want to put the economic and financial actuality within reach of your hand, with a simple and direct language, so that we all could comprise it. The real estate market, the Stock Exchange, the different options to invest, you count and bank deposits... So that you know what to do with your money.
- Spain is the country with more deflation risk
- The slowness in maxima for 12 years
- Housing, it continues the collapse
- Movements to receive deposits
- The Euribor keeps on beating descent records
- Week of breather and increases in Stock Exchange
- SICAV, an alternative of investment
- The unknown side of the mortgages in Spain
- Loans 2.0, credit between individuals
- Price war in the feeding
- It continues the fall of the interest rates and the Stock Exchange
- Measurements of the government against the unemployment, without consensus
- The bank crisis in Stock Exchange
- The unemployment in Spain and the bad economic management
- The economic crisis generates opportunities
- The labor calendar of 2009
- TAE, meaning and calculation
- Interprofessional minimum wage 2009 and minimal pensions
- The IPC of the rents: calculation and update
- Forecasts of the Euribor for 2009
- The best deposits of January, 2009
- The Euribor: calculation and meaning
- Evolution of the interest rates and his consequences
- Where to put the money in epochs of crisis
- Pension plans 2008 of the Santander
I am sorry to indicate him the deep ignorance that it has both of the Anglo-Saxon mortgage world and of ours. On parts:
Comment for mucius- With regard to the mortgages in norteamérica, the following article is illustrative:
http://www.registradores.org/principal/ficheros/noticias/cincodias9mar09.pdf
And there is not any more that to add.
- With regard to our own ones, the obligation of the notaries is not moral but LEGAL, an art. 7 Ministerial Order 5-Mayo-1994; and except test (judicial, clear, I do not tattle) in opposite, I do not meet any notary who does not fulfill his duties of legal warning.
What happens (and in of course I agree with you) is that we have scarce financial culture, we do not ask about the sufficient thing, we do not find out of our rights and sign without much ado.
For sample a button, how many magazines, articles, promotions, do you offer, consult and the others we do not do when we are going to acquire, for example, a motorcar or a TV set, and it turns out that when we buy a housing (200.000, 300.000 € …) we do not notice we try to understand what we are signing.
And then yes, we blame the edict, the notary …
Very Spanish.
13-03-2009 10:47
Friend goes mucius long time ago that was not reading such a partisan and interested comment as yours!!! I suppose that you are a registrar or a notary, enclosed one a banking employee! As if it was not quite the same thing. The collaboration is so narrow between these groups who make a mistake and scare.
Comment for PedroIt is curious as to refute an article you use other of a part interested like the registrars. Do not you believe that it had been a bit logical to make the mortgage law American? I would put it to you, but sincerely I do not want to translate it now.
But the fact is that I have read myself the article and the same one is contradicted assuming that although the law is supposedly similar to ours is not fulfilled and the people are not chased as here, here IF THAT CHASE YOU UP TO EXTRACTING THE EYES.
I have lived during more than 10 years in the State Joined and can make sure the whole world that when you do not pay your house it impedes it to you, and much more rapid that here certainly, but they neither chase you later, they do not even remain a part of your payroll, do not take from you the car, your actions, other properties, etc ….
As for the notaries, clear that they do not break the law, it would be missing more. All that we have bought to ourselves a house one day we know it, it read to you that law these held but they do not explain it to you. In most cases they give you the contracts in the notary's office without practical time to read them. Perhaps the people know how is the calculation done to pay the quotas? do they know that, after paying half of the quotas, scarcely they will have paid a third of his house? but nevertheless the formula if that appears and the notary reads it, but he does not explain it.
You see mucius you are not the informed only one and do not try to manipulate the people if you are a part.
13-03-2009 12:08