# Crazy Bank Offers



## xicoalc (Apr 20, 2010)

Hi All

We all know the financial trouble the banks are in both here and in the UK, but today really opened my eyes just how desperate they are.

I got a call yesterday from my bank manager asking if I would kindly pop in for a chat (don't you hate those calls!). I went in today and she basically offered some things to me that seemed almost illogical.

1) I keep a reserve of money for all kinds of things, working capital for my business, rainy day, etc etc. A reasonable chunk but nothing too grand. She asked if I would tie this money into a 1,3,or 5 year investment. I explained that the particular money in question needs to be available should I need it. Guess what she offered...

Invest for a period of time and they would pay me up to 5% interest (depending on the type of investment), the 100% secure and safe investments were more live 4%. In order to overcome my objection of needing access to my cash she offered to grant me a guaranteed credit line that I can call upon at any time during the investment period to the same value of the investment (common practice), however they were willing to lend to me at just 3%.

So... I bang cash in and they reward me up to 5%, i borrow up to the same amout and pay only 3% on whatever amount I borrow (which I can dip in and out of almost like a wopping great overdraft account). That's like them paying me!

I asked why they would offer something so crazy and she said that they deperately need to get their investment portfolio up and it's something that in some cases they are willing to do in order to achieve this

I then said that I am considering buying a house in the next year or so and again this is a reason I may need access to my cash. She showed me a file of thousands of repo houses, new and pre-owned and said if I buy from them they will happily lend 90% of the VALUE not sale price, meaning that as they are reduced repos I can in effect take a 100% mortgage. She also "quietly" told me that she would be willing to accept any "reasonable" offer on any of the properties on her books. I enquired as to the lending criteria for mortgages (assuming that after the boom and bust they would be strict), her reply was "it won't be a problem, its just a few formalities at head office - I am confident you will be accepted Steve" - clearly they just need to shift the properties!

When I said that I may want to buy from another source she said that providing I leave my investment for one year they will allow me to draw it early penalty free.

So clearly there are a lot of great deals to be had out there now for people who want to save a bit or buy property but it really shows the crap these banks are in when they are willing to offer such rediculous things.

In the UK I always felt in banks like I was the one being interrogated if I asked for so much as an overdraft but here, right now I think the customers can call the shots to a certain degree. I really don't get the lending at lower rate than they pay to invest, I can only assume they know I am unlikely to use the borrowing facility so its a punt for them, but the fact remains I could and in theory if I did they would be paying me for doing so!

I have to be honest, my Spanish is not 100% so I will be taking my OH with me to discuss it all again, because there has to be a catch to some of this stuff doesn't there? Surely! ????


----------



## gus-lopez (Jan 4, 2010)

When I was in the bank the other week they had 000's of flyers with local properties on from their re-sale dept. at ridiculously low prices. When I commented on the prices ( low, very ) the assistant manageress said " & we'll take offers . " Being nosey I asked how many they had , to which she just raised her eyes & said " you don't want to know ." If we were interested it was the same, make us an offer, 100% mortgage ( if I wanted one ) they'd pay all costs , etc, etc.

" I was talking to a manager last month about the "increase" in house sales last month. El sabio said quietly and slowly. "Esteve, look at the figures carefully. Have you seen the number of dacion en pago cases?" So, I guess it's just lies, damned lies and bankers' statistics!"

Exactly, they include D en P & also inheritances in house sale figures, so you've no idea but it looks good to the general public !


----------



## nigele2 (Dec 25, 2009)

SteveHall said:


> Thoughts please, ladies and gentlemen?


I think the problem comes with reference to previous values "two years ago .....".

The losses have occurred. The 200k Es two years ago is 100k Es today. The lost 100k Es has already been lost. So the bank is selling at the going rate in a slow market.

Sadly there are still individuals and organisations who have not accepted their losses. The owners of a certain successful football team in England for example seem a case in point. They have outlandish values on their balance sheet for empty shopping centres based on potential rent revenues. If only we could all live off potential revenues 

I think the 'no off plan' is simply because only a looney would currently buy off plan in Spain 

But I guess if you are sitting on the readies and in for the long haul then there is real opportunity out there


----------



## mattferrier (Oct 18, 2010)

there are vacant properties all over. i am heading out to spain and found an agent who deals with lettings for long term leases (11 months+).
there are so monay to pick from that they are negotiable on every part, even to allow me to reduce the term to 6 months and even a 2 month get out clause!!!
if they cant even rent vacant properties for such small monthly amounts then what chance have they got to sell properties. who would want to take a risk in buying when as steve has mentioned it is still unclear what the real value of properties are until the people holding out decide to cut their losses and try to cash in on their investments.


----------



## MaidenScotland (Jun 6, 2009)

I am sure my daughter is not the only one who gets an email from her bank with a list of distressed sales but surely there must be more than one bank that does this???? 
Does every bank do this?

Maiden


----------



## MaidenScotland (Jun 6, 2009)

SteveHall said:


> No, I would not say every bank does (although they may well do so if you specifically ask) but there are plenty of lists available. Whereas 3/4 years ago it was all a bit cloak and dagger and my manager liked to show me the details in his office, nowadays much is in the public domain.
> 
> As somebody said to me the other day, "One and half million empty houses and another twenty million that will be soon". Whilst I think that is an iconoclastic view, there may be a grain of truth in it.
> 
> Have we hit the bottom yet?




ahh Ok thanks, where could I find these lists as I havent seen anything I fancy on the list my daughter gets sent?

Maiden


----------



## jojo (Sep 20, 2007)

MaidenScotland said:


> I am sure my daughter is not the only one who gets an email from her bank with a list of distressed sales but surely there must be more than one bank that does this????
> Does every bank do this?
> 
> Maiden



Me and my OH always get e-mails from CAM and others (yawn, I always stick em my junk mail box) about distressed sales. A friend of mine has just bought a house through CAM - no agent involved as they were on their e-mail list too and as this property was illegal (tut, tut), the bank very kindly arranged to have it legalised and have made sure that all permissions are in place for reformation work to be carried out. The house owed CAM 1.5 million, and my friend wont tell us what he paid, but it wasnt anywhere near that much!! Is it a deal??? Only time will tell

But yes Maiden, most banks e-mail out their prepossessed lists if you ask

Jo xxx


----------



## MaidenScotland (Jun 6, 2009)

O.K I will try and get on various banks emailing lists, no point in paying commission to an agent if I can do it myself.

On another note.. my daughter bought her house three years ago for the asking price and I recently asked her if she had thought about it would she have given the asking price ? She replied

Mum a house is worth what you want to pay for it this is my home and it's the best thing we have ever done and no I wouldn't dither about to get the house I want.


----------



## jojo (Sep 20, 2007)

SteveHall said:


> I think your daughter takes a very sensible view. If others had done that (approx 43 million others!) then perhaps Spain's property market would not be the shambles it is.
> 
> It was reported yesterday that the RBS has been instructed to sell off 3 Billion euros worth of Spanish property. That's just NOT the message that the market wants to hear.



Its a great shame that people view the whole property thing as an investment market! As Maidens daughter has stated, its about a home not money, that IMO, is what its all about and those who try to make money from it all deserve to get their fingers burnt!

Jo xxx


----------



## gus-lopez (Jan 4, 2010)

MaidenScotland said:


> O.K I will try and get on various banks emailing lists, no point in paying commission to an agent if I can do it myself.
> 
> On another note.. my daughter bought her house three years ago for the asking price and I recently asked her if she had thought about it would she have given the asking price ? She replied
> 
> Mum a house is worth what you want to pay for it this is my home and it's the best thing we have ever done and no I wouldn't dither about to get the house I want.


" La Caixas" repo arm is servihabitat. Just google that & it will be the top one on the page. It's a bit of hard work to use unless they've upgraded it. I've just noticed on the flyer from them that if you are in the 'multi estrella' programme ( whatever that is ?) you get an additional 5% discount !


----------



## geez (Apr 4, 2010)

gus-lopez said:


> " La Caixas" repo arm is servihabitat.


Thanks for that Gus-Lopez. Anyone else any other links of interest?

PS I'm totally with JoJo and Steve... we're not seeking to speculate, benefiting from others' misery. We're needing a place to live in which we can live on likely future humble wages.


----------

