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I don't know if you are like me Baywatch but I always find it incredibly sad to see this happen, I remember the unprecedented amount of reposessions in the uk.


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Discussion Starter · #3 ·
I don't know if you are like me Baywatch but I always find it incredibly sad to see this happen, I remember the unprecedented amount of reposessions in the uk.


Cheers
I think the law before made it almost impossible to sell foreclosure properties. Banks must get a chance to get rid of the properties, otherwise they will be in trouble forever. But for the owners, yes it is tragic
 

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I think the law before made it almost impossible to sell foreclosure properties. Banks must get a chance to get rid of the properties, otherwise they will be in trouble forever. But for the owners, yes it is tragic
Property repossession is tragic for anyone caught up in it, and the banks bear much responsibility for their reckless attitude towards advancing loans for properties which were many times the average national wage here, even before the financial crisis.

I learned in my Greek lesson tonight that part of the new legislation ensures something that I believe is called either a 3 tier or a 3 generation guarantee.

Apparently, this means that when the bank's repossess a property and auction it, the losing family plus their parents and their children, may buy it at the highest price at auction with the cost (and presumably any loan) being split across the 3 generations.

Another important amendment to the legislation before it was passed was that guarantors to the original mortgage would not be held responsible as guarantors any longer and would not be required to pay the difference between the mortgage and the price received at auction for the property being repossessed/sold.
 

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Discussion Starter · #5 ·
Property repossession is tragic for anyone caught up in it, and the banks bear much responsibility for their reckless attitude towards advancing loans for properties which were many times the average national wage here, even before the financial crisis.

I learned in my Greek lesson tonight that part of the new legislation ensures something that I believe is called either a 3 tier or a 3 generation guarantee.

Apparently, this means that when the bank's repossess a property and auction it, the losing family plus their parents and their children, may buy it at the highest price at auction with the cost (and presumably any loan) being split across the 3 generations.

Another important amendment to the legislation before it was passed was that guarantors to the original mortgage would not be held responsible as guarantors any longer and would not be required to pay the difference between the mortgage and the price received at auction for the property being repossessed/sold.
Can anyone tell me then what a guarantor is for? In my book, if the borrower cant pay, the guarantor must. That's the idea with the system. But this is typical Cyprus.

In this case I can feel sorry for the banks, whatever thy do they will loose money.

Just hope they will now allow creation of a bad loans bank so they can start earning money again and someone skilled can manage the bad loans
 

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Can anyone tell me then what a guarantor is for? In my book, if the borrower cant pay, the guarantor must. That's the idea with the system. But this is typical Cyprus.

In this case I can feel sorry for the banks, whatever thy do they will loose money.

Just hope they will now allow creation of a bad loans bank so they can start earning money again and someone skilled can manage the bad loans
Whilst I cannot argue against this logic, I am not at all sorry for the banks. All over the world, they have made poor decisions based mainly on avarice and greed and when the whole thing fell apart, most national governments considered them too big to fail and used taxpayers money (OUR MONEY) to bail them out. Meanwhile, they did not learn the lesson, other than they had a get out of jail free card and still paid (and continue to pay) themselves exorbitant bonuses even though they are not performing. The fines that so many UK banks have paid over the last few years for malpractice, the appalling customer service we receive from them and the pathetic rates of interest they pay make them an industry in desperate need of reform in my opinion.

There is something radically wrong with banking.
 
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