Property legal rulings going in the right direction!
 

Just caught this from an online newsletter I get.
It does seem that sense is starting to prevail re mortgage repos and I know a few on this forum will be pleased to see this judgement. It may provide leverage in their own cases. In the same article there is mention of banks having their hands slapped for not returning peoples deposits (for offplan not completed)held in safe accounts, when building ceases.


"In a second case another bank also lost a judgement, but this time over a matter where Spanish law would normally rule in their favour.

Under current law, when a mortgage is in default, lenders have the right to make a claim against all of a borrower’s assets – not just the property on which the mortgage was granted.

So, when BBVA repossessed a property which they later sold at auction for nearly 30,000 euros less than the property’s mortgage, they continued to request payment to reclaim the full value of the debt.

However, this particular judge effectively ruled that the bank had only themselves to blame – arguing that they had initially over-valued the property and provided a mortgage in excess of its true value.

In a surprise verdict – at least to the bank – it was decided that the proceeds gained from the sale of the property would clear the former owner’s debt in full.

The case highlights a general lack of empathy with the banking industry at the moment".http://news.kyero.com/2011/02/01/spa...nder-scrutiny/

Re: Property legal rulings going in the right direction!
 

Unfortunately some judges tend to be rather "senile" for lack of a better word :rofl:

This ruling goes against national Spanish law (just as it would in the UK) and I suspect that it will be overturned at appeal.

Re: Property legal rulings going in the right direction!
 

It may be. But at least the situation gets looked at properly.
I know there will be bankers, builders, property dealers etc on this forum but it's ultimately in everyones interests (except the greedy 'wunch' at the top end of the banking system) for for mortgages not to go over 100% of the *real* value of the property.