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bolsa simbolo dolar escudo proteccion 72572 1036 - Five aspects of the nullity of mortgage guarantees

Endorsing a mortgaged person is a really important commitment. Do not forget that, in the event of non-payment of the loan, respond with your present and future assets. Under normal conditions, the guarantor cannot lose anything to fear, but the crisis of a few years ago showed us that a person may be responding to his debt one day and losing his job and staying in the street the next day, having lost his home and that of the guarantor, in addition to having this to continue paying. In this post, we detail issues such as when the endorsement would disappear and when they might have no doubts.

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parejas mayores hablando finanzas alcancia 1150 7852 - Why does not the reverse mortgage triumph in Spain?

In Spain, there are more than 8 million people over 65 with property in their own homes. Accumulate savings of 600,000 million euros in housing compared to 120,000 million in pension plans for the total population.

However, last year only 45 reverse mortgages were commercialized in our country, according to the figures offered by the General Council of Notaries. But, let us start at the beginning. What is a reverse mortgage? And why are so few marketed?

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Last week, Spain’s so-called ‘bad bank’, which was set up in December 2012 to take over toxic property and land assets from the country’s troubled financial institutions in order to ‘cleanse’ their books, started promoting its first batch of properties.

2705707 935679 foto 1 300x156 - Spain’s 'bad bank' begins businessThe new state-run bank, ‘Sociedad de Gestión de Activos Procedentes de la Reestructuración Bancaria’, known by its acronym SAREB, began its operation by putting 13,000 properties, once belonging to rescued lender Bankia, on the market.

In total, by the end of last year, SAREB had taken on 37 billion euros worth of assets from four nationalised banks. In exchange, the banks received EU rescue funds as well as bonds.

These assets, purchased at knock-down prices are to be sold on to investors over a 15-year period, offering a minimum return of 14 per cent.
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The Bank of Spain had chosen two consultants so that they value the Spanish banks’ assets.

The purpose of this evaluation is to “increase transparency and definitively dispel doubts about the valuation of bank assets in Spain”, Economy Ministry sources said.

De Guindos 300x198 - Spanish Banking System under examThe independent consultants selected are the German Roland Berger, and Oliver Wyman of the United States. Oliver Wyman has a dark point on his curriculum as he classified Anglo Irish Bank as the best in the world in 2006, just two years before this bank was nationalized.

Economy Minister Luis de Guindos refused on Monday any further serious regression in home loan defaults.

The performing loan ratio for mortgages currently stands at 2.8 percent, compared with 21 percent for credit to the real estate sector. The banking system’s loan portfolio is currently around 1.76 trillion euros, of which 656 billion is in the form of mortgages to individual homeowners and around 310 billion to property developers. In a decree approved earlier this month, the government increased provisions for loans to developers to up 45 percent of the value of the credit.
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According to an article reading in El País, the government may inject public funds into the banking system if this is necessary to save the banking system. 

Euro 300x216 - New Push to Uphold Spanish Banks

The government had guaranteed not to give money to the banking industry which is struggling in the wake of a collapsing ten years of housing boom.

"If it was necessary to reactivate credit, to save the Spanish financial system, I wouldn't rule out injecting public funds, like all European countries have done," Mr. Rajoy said in interview with Onda Cero radio stations.

On the other hand, an official at Spain's finance ministry said measures that are expected to be approved by the cabinet on Friday will include guidelines to remove impaired real-estate assets from banks' balance sheets.

The segregation of toxic assets is seen as key to completing the clean up and calming investors.

The Spanish finance ministry official explained that the government and central bank are studying a specific cleanup plan for Bankia SA and Banco Financiero y de Ahorros SA, which could include a total change of their management. Newspaper El País said Monday the government also plans an injection of state funds via convertible bonds with a rate of about 8 per cent.

Sources: El País, Wall Street Journal.