There is nothing ‘Spanish’ about what is being described here. If anything, it reinforces my overall prejudices against bankers and banks.
In the US, most banks refuse to re-negotiate mortgages, even with existing, good clients who demonstrate that they can continue to make payments but less than the original mortgage terms. So instead of taking a small loss or delaying the same profit for a few years longer, the banks choose to foreclose, making the home owners homeless and adding yet anther empty, unsaleable house to their now extensive real estate holdings. I don’t know if there is something in the tax laws that favors this scenario, but given all the whining I hear, I doubt that this in any way benefits the bank. And the industry is saying that foreclosures are down this year – based upon the statistics as of April, they’re predicting that only 850,000 homes will be repossessed in 2011. Somebody open a bottle of cava!