[Leica] Nathan's PAD 31/1/2015: the human face of the crisis

[Jayanand Govindaraj]

Nathan,
My view, also as an ex banker, and with no love lost for the industry as it
is today, is that banks were greedy and criminal, but the borrowers were
also greedy, and foolhardy to boot, to think that good times last forever.
The basis for the Law of Contract is caveat emptor (buyer beware) - and the
borrower is forever the buyer. In the case you have outlined, from a legal
standpoint, a cursory analysis tells me that the banks have a legal basis
for what they have done. Your friends and the parents seem to have got very
bad advice when taking out the loan.
Cheers
Jayanand

On Sun, Feb 1, 2015 at 1:56 PM, Nathan Wajsman <photo at frozenlight.eu> wrote:

> Sonia and Paco are a young couple with two small daughters. Some years
> ago, when both had jobs, they bought a home, worked, and made their
> mortgage payments without any problems for 5 years. Then the crisis hit,
> Spain’s unemployment rate soared to 25%, and both of them lost their jobs.
> After some months, they were unable to make the mortgage payments and the
> bank foreclosed on them. But because of the fall in property prices, their
> debt exceeded the value of the house, and so the bank is trying to collect
> the remaining debt of 35,000 EUR by garnishing part of Sonia’s parents’
> pension—they had co-guaranteed the loan when the mortgage was taken out.
> The couple and their daughters now live with Sonia’s parents, but with the
> bank’s demands the entire family is on the verge of falling into extreme
> poverty. Supported by a local NGO that campaigns against the banks’
> predatory practices, they have set up a camp outside the BBVA branch next
> to the Mercado Central. I went there yesterday to have a look and a chat
> and to document it. They have now been there for 28 days. Their demand is
> that the bank stop garnishing Sonia’s parents’ pension.
>
> Two snaps. First, the overall view of the encampment:
> <
> http://www.greatpix.eu/All/Picture-A-Day/4253606_kdsZ6C#!i=3853988458&k=3zcKkQz&lb=1&s=O
> >
>
> People signing the petition in support of Sonia and Paco and in general
> demanding that the law be changed so that the debt is extinguished once the
> house is taken by the bank:
> <
> http://www.greatpix.eu/All/Picture-A-Day/4253606_kdsZ6C#!i=3853988612&k=GJs77dK&lb=1&s=O
> >
>
> And yes, I signed also. I am no populist but the banks ARE greedy
> bastards. Just this week, 78 executives of another bank have been charged
> with fraud—they had been given “black credit cards” by the bank which they
> could use freely, and of course this little fringe benefit was never
> declared to the tax authorities.
>
> Cheers,
> Nathan
>
> Nathan Wajsman
> Alicante, Spain
> http://www.frozenlight.eu <http://www.frozenlight.eu/>
> http:// <http://www.greatpix.eu/>www.greatpix.eu
> PICTURE OF THE WEEK: http://www.fotocycle.dk/paws <
> http://www.fotocycle.dk/paws>Blog: http://nathansmusings.wordpress.com/ <
> http://nathansmusings.wordpress.com/>
> Cycling: http://www.crazyguyonabike.com/belgiangator <
> http://www.crazyguyonabike.com/belgiangator>
> YNWA
>
>
>
>
>
>
>
>
>
>
>
>
>
>
> _______________________________________________
> Leica Users Group.
> See http://leica-users.org/mailman/listinfo/lug for more information