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Sancho Panza

Missing Property Addresses And Keys Hamper Spain's "bad Bank"

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Reuters

'(Reuters) - Spain's "bad bank" not only has to sell the soured property loans and unwanted housing it took on from the country's rescued lenders - it first has to find them.

A review of the 51 billion euros ($66 billion) of property loans and buildings transferred to the state-run vehicle as part of the industry clean-up has uncovered swathes of incomplete records, including tens of thousands of missing addresses, three sources familiar with the process said.

Keys to the wrong homes have also been among the challenges faced by teams of lawyers and property experts hired to sift through the assets and value them, two of the sources said

The administrative muddle risks delaying the sale of assets and ultimately how much money the bad bank, known as Sareb, is able to salvage from a property crash that drove many of the country's banks to require a European bailout.

Belen Romana, who chairs Sareb, said this week the bad bank had sold just 700 properties by June 1. Its target is to sell 45,000 properties in five years and it is aiming for an annual return on equity of 13 to 14 percent over its 15 year lifespan.

"The front office of Sareb looks like a merchant bank with people in pin-striped suits and nice ties," said a real estate broker familiar with the organisation, which is trying to seal its first major sale of a portfolio of properties to investors.

"But behind the scenes ... you have an army of people in a warehouse scanning and filing documents and combing through data tapes. That's where the mess is."

WRONG KEYS

Sareb's roughly 107,000 properties and 90,000 loans come from nine rescued lenders such as Bankia and Barcelona-based Catalunya Banc, and these banks still have the contract to manage the assets.

The loans are linked to another roughly 400,000 properties or tracts of land used as collateral, two of the sources said, adding that tens of thousands of those lacked proper addresses, hindering the valuation process.

"We had some addresses with just '4C' registered as the address, and with the name of a very common street in Spain," one of the sources said, speaking on condition of anonymity.

"You might also get 150 assets and addresses then realise they are all one same apartment hotel," the source added.

The review of the collateral has already delayed the valuation process by some weeks, the sources said. Thirteen firms including law firms, property consultants and accountants, led by Clifford Chance, are working on the process.

"There were instances with one of the banks involved where people went to check out a property and were given the wrong keys, or were told there was no-one living there and walked in and there was," a third source familiar with the process said.

Binding bids for the sale of Sareb's first portfolio of properties, of about 100 million euros, are due in mid-July, a source close to that situation said.

U.S. funds Lone Star, Cerberus Capital Management and Apollo Global Management are among those still in the running, the source said.'

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Farage said something about this the other day.

"Now I'd been wondering for the last 2 or 3 years, what was going to happen when things really hit the fan in Spain. Because I'm absolutely confident that the Spanish banking figures you see do not reflect the true extent of the liabilities.

If you go into a Spanish bank, and say look, there are the keys. I can no longer go on paying the mortgage on this property. The banks says, no, no, no, no...Please keep the keys, just pay us 10 Euros a month. And we know that's been going on."

At around 19mins in.

Edited by sleeping dog

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If you go into a Spanish bank, and say look, there are the keys. I can no longer go on paying the mortgage on this property. The banks says, no, no, no, no...Please keep the keys, just pay us 10 Euros a month. And we know that's been going on."

Exactly the same issues here in Ireland albeit slightly differently, the banks just do not purse defaulters or repossess properties.

Irish_mortgage_arrears_Q1_2013.jpg

March 2013

Residential: 774,109 residential mortgage accounts, to a value of €109.9bn. Of this total stock of accounts, 95,554, or 12.3%, were in arrears of more than 90 days.

Buy-to-Let: 149,395 buy-to-let properties held in the Republic of Ireland, to a value of €30.9bn. Of this total stock of accounts, 29,369, or 19.7%, were in arrears of more than 90 days.

The BIG question is, when does all of this blow up again? After the September German elections?

There are huge problems with banks holding housing stock off the market in Vegas at the mo. At some point in the next 10 years all of this housing stock in the EU and US will fall into decay and be worthless, all that will be left are building plots which the banks can sell us along with a mortgage to rebuild the properties.

I could post 100+ links to empty houses around here that are in relatively good locations, but are not for sale, occupied or rented. I suspect there are over 1,000 in this county alone - possibly more. Multiply that up for the whole of Ireland, Spain, US etc and you will mind millions of empty housing units sitting empty and falling into decay.

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There are huge problems with banks holding housing stock off the market in Vegas at the mo. At some point in the next 10 years all of this housing stock in the EU and US will fall into decay and be worthless, all that will be left are building plots which the banks can sell us along with a mortgage to rebuild the properties.

I could post 100+ links to empty houses around here that are in relatively good locations, but are not for sale, occupied or rented. I suspect there are over 1,000 in this county alone - possibly more. Multiply that up for the whole of Ireland, Spain, US etc and you will mind millions of empty housing units sitting empty and falling into decay.

Great for TPTB.. will reduce supply and help keep a floor under house prices.

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Great for TPTB.. will reduce supply and help keep a floor under house prices.

Which is of course the aim, albeit it is not in the interest of the population or the country.

The total losses on a few thousand houses kept off balance sheet are less, I imagine, than the losses would be if the whole housing stock fell in value by 50%.

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Great for TPTB.. will reduce supply and help keep a floor under house prices.

As I've said.. people will starve and freeze in the streets whilst houses stand empty and food rots in the supermarkets.

Because the alternative is rich people taking losses (or paying tax, perish the thought).

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As I've said.. people will starve and freeze in the streets whilst houses stand empty and food rots in the supermarkets.

Because the alternative is rich people taking losses (or paying tax, perish the thought).

got to keep bankers employed...the ultimate parasites.

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  • 242 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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