Reply To: Walk Away

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Claire 🙂
Yep that too
Steve 6 .Hi Think you have it wrong as your supposed to offer 70% off. 😕
Surely the point will be when /if these illegal builds are legalised and the value of property is seen to be in negative equity once the mortage is applied.
Surely the banks will want to reduce their risk and expect the buyer to come up with extra cash.
In many cases where those that contracted to buy at an inflated price may have to find and extra 100,000 euros for example at a very poor exchange rate.(falling prices in the U.K will make it tough to raise equity on their property here)
We all know that a massive amount of property was bought as short term monitary gain and these are the ones that are going to loose bigtime as they had no intention of completing in the first place.Why else would anyone contract to buy 3/4/5 properties.
This will be what we will read as property losses or dropping values as they try to minimise losses
What are the Spanish Banks view of negative equity and do they extend interest only payments due to the credit crisis as this will hit hard for many when this period is up.
The currency situation may very well be the one to tip this all over the cliff :cry:.
Hows that for a balanced view 😆
You can play around with figures and forcasts but reality will be decided on world events and the attitude of the lenders as to how this all is going to end.
Many buyers will have no option than to walk away but what gets me is surely the Banks realise this 😕