Whine, whine, whine

Piece in The Observer about how appalling it is that in Spain, if you\’re over your head with the mortgage, the bank repossesses, then you still owe the bank money!

This is known as \”recourse\”.

Exactly the same as all mortgages in the UK.

Damn these Johnny Foreigners and their strange ways!

4 comments on “Whine, whine, whine

  1. Ah! I see, greedily borrowing 140% of the value of your flat is good. When it goes tits up, the bank is the greedy one.
    Can someone please explain how a law enacted in the Ecuadorian parliament is supposed to have an effect on Spanish banking or property law?

  2. So it means that they cannot imitate Californians and a few others who can just walk away if house prices go down instead of up. Does the Observer think it’s a good idea to encourage gambling on house prices based on “any profit I keep, any loss I stick it to the building society or bank”
    Oh, my bad – of course they do because that transfers wealth from the rich to the poor UNTIL building societies go out of business and no-one can ever buy a house except for cash down in advance.
    A return to housing the working class in Victorian slums – which is all they can afford to buy without a mortgage – might just help The Observer to generate enough support for Labour to win an honest election.

  3. Unlike most (though not all) US states.
    It is the states without recourse that have the problems with “jingle-mail”. Your house goes down in value (when *everyone* knows it should have gone up), so you post your keys and walk away… the lender can do nothing.
    This is the “toxic mortgage debt” that everyone has been yakking on about all these months.

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