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The Spanish Lawyer Online
The Spanish Lawyer Online

Spanish Equity Release Fiasco

Exposing Danske Bank, Rothschild, Nykredit, Sydbank and Others


Archive for December, 2011

Mortgage Broker Arrested in Madrid

December 8th, 2011

A “cowboy” mortgage broker has been arrested in Madrid in connection to a mortgage fraud affecting South American immigrants. The Judge in Court of First Instance 42 of Madrid accuses him of setting up a scheme to assist immigrants in qualifying for mortgage loans that would not be available to them in normal circumstances. The fraud consisted on a scheme whereby groups of immigrants would “pool” their income-supporting documentation to buy several properties on a same day, thus avoid detection by banks’ risk-assessment analysts who, on knowing that each buyer was guaranteeing several loans on other properties, would have rejected those applications outright. Unfortunately, the net collapsed once a borrower was not able to meet the repayments.

El Pais considers this as a major step forward among the few criminal complaints filed in relation to practices that were common in the boom days.

The 10 families that have lodged the complaint argue that Enrique Caño, the broker, abused borrowers’ trust and their limited financial knowledge to involve them in high-risk transactions.




76 Year-Old Evicted for Failing to Pay Mortgage

December 5th, 2011

It was the second most read article on the most read Spanish online newspaper in the world: a 76 year-old being evicted from her home due to her providing her home as collateral when signing up a refinancing package for debt accrued by the son. Whilst we do not know the particulars of the case, we cannot stop associating the predicament of the lady in the tent with that of hundreds of pensioners duped by foreign banks and imposter IFAs.

I wonder how will the Equity Release banks (Rothschild, Nordea, Danske Bank etc.) cope with being on the press if they choose to start enforcing foreclosure and eviction clauses now that pensioners have, by and large, opted to stop repaying those mortgages.



Two Rothschild Equity Release Victims Interviewed

December 5th, 2011

Antonio Flores of Lawbird interviews Julia Hilling (88) and Peter Cosgrove (78), two Rothschild and Hamilton’s victims.

Stories of Victims