Alicante, Spain -- (SBWire) -- 05/17/2013 --EU Investigations, prepares a comprehensive report into the murky world of expat Mortgages and Property deals and how the corrupt banking system has landed many thousands of people in negative equity on their investments and properties with the threat of action being taken against their UK Assets.
Initially, EU Investigations opened an investigation into Property frauds which had occurred in Spain and have been amazed at the extent of the problems which have affected many having being inundated with personal stories of how the developers have ripped off many expats, selling properties off plan and in many cases taking monies for properties which don’t even exist. Later the developers and real estate companies have filed for Bankruptcy leaving many bitter investors out of pocket with no means of redress and nothing to show for their trust which they put into these “recommended “schemes.
Over the past few months it has become increasing clear that, since the start of the boom in Spain, a vast number of innocent buyers who having invested their hard earned cash into Property and businesses are now in a negative equity situation. Many thousands of them are now find themselves in a situation whereby they cannot sell their properties, and have to continue to pay for a depreciating asset. Most properties in Spain having lost over 45% of their value since the crisis had started, but many expats are locked into a Mortgage arrangement with the Spanish banks meaning that they will end up paying almost treble the value of the property.
When the Banks went cap in hand to Brussels to request bail out money, it was assumed that they would start to become more realistic and lenient to their clients, however, in only the past 12 months the Banks have repossessed over 40,000 properties – kicking out many hundreds of thousands onto the streets, with many of them being expats who have lost their dream.
The Law in Spain states that a person in default can have their home repossessed BUT they still can end up owing the outstanding debt to the bank, even though they have given back the keys. The Banks then, in many cases, are selling these properties at way below market value – especially to their “connected “clients. Then the banks start to go for the short fall against the UK assets
EU Investigations regards this as an outrage and is preparing a portfolio of individual cases in an effort to highlight just how prevalent is this practice and requesting that the EU commission force Spain to make amendments to the law on this subject.
If you have been affected and would like our assistance, or know of anyone who has, please contact EU Investigations. Propertyfraud@euinvestigations.com
Web: http://www.euinvestigations.com
EU Investigates Property Fraud in Spain