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Hard Foreclosure Times



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By : Samanta Parks    99 or more times read
Time of banks goodwill has passed. In the past, they were flexible and tolerant with repayment terms, as if they offered free credits. On the contrary, now they are rigid and merciless as if they wanted their money back as soon as possible. The stress of debts recovery by financial institutions generates situations if not ridiculous, at least abnormal. Abusive behavior has every day new forms of expression. Some banks have logged by a day the deadline for the payment, as it was not specified in the contract. Others threaten their customers with listing their names among bad debtors for amounts that exceed… 1 dollar.

If only one day passed after the deadline, the bank hurries to send the foreclosure warning. Official, especially written to intimidate, in a juridical language are very different from the friendly language in the invitations that are part of any commercial urging anybody to contact a consultant in order to get a loan.

People are told that their names are listed in the banks’ records with payment delay between zero and fifteen days. They are reminded that if they do not keep the contract provisions, the bank has the right to begin foreclosure procedures in order to recover the amounts they deserve. People find out that according to the current law they will be recorded as debtors, in the database of the credit bureau, after 30 days since the deadline.

With approximation, these words make a two-page notification finishing usually with the formula “Sincerely yours.” However, they are not signed. This is a clue that, as far as the unpleasant aspects are concerned, there are less people involved. They are replaced by a machine, which obviously is not sensitive at all. One dollar or one hour does not make any difference when we talk about debts.

In the past, taking into account the fact that people always need extra money, the banks used to compete in finding the most persuasive ways to attract people in order to require loans. Nevertheless, the global foreclosure crisis put an end to the competition for market rates increase, leading to a reevaluation of credit portfolios’ quality.

Warnings concerning the dangerous increase of crediting, especially for individuals, but not only for them, tend to be confirmed by the reality. On the background of unemployment growth, now, the number of people who have debts will exceed considerably the number of employees. Who could ever anticipate, though, that pensions received from the government, rather than salaries, would keep the sale – purchase balance in 2009!

Meanwhile credits offered generously for speculative projects, not only in the area of real estate, start to show off their structural vices.

Lack of balance concerning loans cost because of national currency decrease in most of the countries and because of expensive financing led to threefold increase of the failure rate out of the total number of credits, in three years time. At the end of the year the indicator can be found at a distance of 4 percent points compared to the level of 10%, considered dangerous for the stability of the bank system.

Nowadays, aggressive marketing campaigns focused on the infinite offer of credits are replaced by bankers’ image campaigns. A recurrence of the soft expression formula when they speak about debts recovery is suggesting the idea that banks are not real estate agencies, therefore they are not interested in selling anybody’s house. Banks are partners of their customers and that is why they are not interested in foreclosure.
Find Foreclosed Homes for Sale and Foreclosure News at ForeclosureDataOnline.com

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