Julia Gavin sold more than a house a week as the Spanish real-estate boom peaked last year. Now that business is drying up, she's sharing leads with competitors, reckoning a partial commission is better than none at all.
Gavin and her clients are paying the price. In one case last month, she says, she thought she had a sale after three months of negotiations among buyer, seller and mortgage lender. Then Ibercaja SA, a Spanish savings bank, refused her client a loan covering the 168,000-euro ($247,000) purchase price. The bank said it had concluded the client was overpaying for the property in El Escorial, near Madrid.
"The banks are coming up with a million excuses not to give loans,'' Gavin said. "They don't want to take any risks.''
Banks are refusing mortgage because the Client is overpaying for a property: Sounds like Banks are coming back to earth and follow sound pratices. At least this credit crunch created a return to normality over there. Hope the message spreads among reckless lenders throughout Europe.