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How To Get a 50 Year, 100% LTV, Euribor + 0.35%, Two Year Grace Period Mortgage

Tyler Durden's picture




 

...Just live in Spain. With millions of Option ARM mortgages still coming due in the next two years in the US, the Fed's ongoing push to drop mortgage rates has only made the problem worse, and instead of people refinancing out of adjustable rate mortgages into fixed, with the opportunity cost being so little, if any, the whammy of rising interest rates on home values upon Option ARM expiration will only exacerbate the triple dip in home prices once the ARM cliff hits some time in 2012/2013. Yet it seems that this final recourse to extend and pretend the housing bubble is only now coming (a tad too little too late) to those European countries which are already bankrupt and will do anything and everything to prevent reality from appearing. Behold the BBK Euribor+0.35% 5 Year Option ARM 50 year mortgage with an LTV of up to 100% (but only if you can be enslaved early on: the mortgage is only open for people 18-35). And just in case you can't actually afford Euribor+ 0.35%, that's factored in too: you have the option of not paying for years.

Details of the BBK "young mortgage" offer:

From Euribor + 0.35 (*) and 50-year term for young people between 18 and 35 years (35 inclusive). Funding adapt to your needs. bbk always offers housing finance solution that best suits your desires.

Purpose

Acquisition of residence

Advantages

You choose your terms with the advice at all times by our team of professionals

  • fixed rate period up to 5 years of your choice
  • funding of up to 100% of the value of your home
  • flexibility in payment
  • you can pay your fees monthly (indicating the day of the month you prefer)
  • the repayment system that best suits your needs
  • and if you need a break in the early years, we will let you you amortize later on. No amount necessariy to be paid during the early years.

Features

maximum amount: up to 100% of assessed valuation
maximum rate: up to 100% of assessed valuation
term to 50 years depending on your current age
depreciation system: constant or increasing share share

Commissions

study group: from 0.00% (*)
origination fee: from 0.00% (*)
(*) Offer detailed and personalized consultation at any of our offices

Documentation

Legal documentation

  • taxation

It is unclear if making any money would disqualify one from this mortgage. Then again with well over 40% of the Spanish under-25 population unemployed, w don't think finding qualified NINJA applicants will be an issue. 

And just in case anyone finds the conditions in the above mortgage offer too Draconian, here is Banco Caiza Geral with an offer for a 45 year mortgage with a 2 year grace period. After all, there are iPadi to be purchased and millions of Chinese workers to be made richer.

Euribor + 0.55%
APR 2.3726% *
Period of up to 45 years
Commissions

0% Commission to Study

  • 0.20% Commission Opening

Termination fee

  • 0% for partial repayments.
  • 0.50% the first 5 years of the loan and the remaining 0.25%, if full repayment.

Up to 2 year grace period

And the main prequalifying condition for the above offer:

  • At least 3 bills and hire a credit or debit card carrying with it a minimum monthly payment of 10 €.

And one wonders why Erik Nielsen is so confident the European bubble will go on.

At least Spain has conclusively shown to America how to get HAMP to work once and for all: just let people never pay ever again. Done and done. After all the taxpayers will be more than happy to always foot the bill.

With Geoffrey Batt

 

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Sun, 12/05/2010 - 13:27 | 779575 TheGreatPonzi
TheGreatPonzi's picture

Well, given the fact that banks make their money on credit, and that they never suffer losses - as they are paid by taxpayers - it's actually an intelligent and profitable offer.

Sun, 12/05/2010 - 14:14 | 779657 quintago
quintago's picture

how long does it take to get residency in espana? or is that not a requirement either?

Sun, 12/05/2010 - 13:49 | 779610 Rainman
Rainman's picture

This is really a landlord's move-in-special joke, right ??

Sun, 12/05/2010 - 17:18 | 779993 IQ 145
IQ 145's picture

 It translates as; "just buy something for christ's sake; anything". Need to get the property signed up as a "purchase"; worry about the rest later. Tremendous built overhang in residencial units.

Mon, 12/06/2010 - 07:22 | 781570 StychoKiller
StychoKiller's picture

Perpetual servitude?  Good, 2nd door the left, one set of leg-irons each!

Sun, 12/05/2010 - 13:49 | 779613 jakethesnake76
jakethesnake76's picture

makes perfect sense to me lol so why would a bank ever suggest such a thing unless the government is backing it so that all the people in these houses will be beholding to the big G its a crazy world out there hope the sheep wakeup before its to late !You are getting married to something that will not be so pretty when the wedding gown comes off lol 

Sun, 12/05/2010 - 13:52 | 779619 JOHNICON
JOHNICON's picture

I think the 2-year grace period is for paying the principal.  Looks like interest still has to be paid.  In the fine print:

      "La carencia es de capital por lo que durante dicho periodo el cliente sólo deberá abonar los intereses correspondientes"

Even though I've taken high school Spanish and three semesters in undergrad, I still need to go to Google Translate.  Google Translate says that this means:

"Lack of capital is so during this period the client will only be charged interest."

 

Whether that means this is an IO loan or that interest will merely accrue with no payments being made at all is unclear.  I'm leaning towards this being a "Pick-A-Pay" loan with interest only being an option for the first two years.

Sun, 12/05/2010 - 13:55 | 779627 JOHNICON
JOHNICON's picture

BTW, I was referring to the second advertisement:  http://www.hipotecacaixageral.es/landingpageI/?sender=219

The first one is unbelievable.  I guess the people of Spain/EU/USA/World don't give a shit that this bank, assuming it makes any of these mortgage loans in size, will eventually go bust and the tab will be picked-up by the taxpayer in the end.   So goes the moral hazard of having gubbmint backing of the banks.

Sun, 12/05/2010 - 17:21 | 779996 IQ 145
IQ 145's picture

 It's not actually unclear; it says the client must pay the interest, (during the period etc.).

Sun, 12/05/2010 - 14:01 | 779634 RobotTrader
RobotTrader's picture

Heh, leave it up to the "Wall Street Innovators" to concoct all kinds of "new and improved" products to keep the Credit Bubble alive.

Nothing is going to change.

Poor Doug Noland must be aghast at this development.

Sun, 12/05/2010 - 14:12 | 779654 Eureka Springs
Eureka Springs's picture

Isn't this just a twist on what Nippon did years ago?

Sun, 12/05/2010 - 14:37 | 779705 Oh regional Indian
Oh regional Indian's picture

only if you can be enslaved early on: the mortgage is only open for people 18-35

Ahhaaa... such a clincher.

Harvesting prime-livestock.

Takes me back to my Ninja attempting days, I came so close....so close, thank you guardian angel.

2003, Kali-fornia was a flipper's heaven and Ninja's were everywhere. 

Stealthy puckers...imagine, from flipping burgers to flipping houses, all in a single day's work for the go go crowd in those days.

I'm sure spain will continue to party hearty till actual contact is made with ground 300 feet below.

Look out!

ORI

http://aadivaahan.wordpress.com

Sun, 12/05/2010 - 15:19 | 779785 QQQBall
QQQBall's picture

 

No suspense, we already know how option ARMs end

Sun, 12/05/2010 - 15:54 | 779850 Rogerwilco
Rogerwilco's picture

What's the big deal? They've been doing this with commercial RE loans here in Amerika for over two years. All sing along now:

This land was your land
And now it's their land...

Sun, 12/05/2010 - 15:58 | 779856 MrTrader
MrTrader's picture

WOW! Impressing. I have to move to Spain right now. That´s almost for free ! I think that´s just the right "accomodation" for me :

http://www.luxuryrealestate.com/residential/1618230-villa-in-puente-roma...

 

Sun, 12/05/2010 - 16:43 | 779930 Bob
Bob's picture

Ya gotta laugh!  But it works on the books--and what else matters anymore?

Besides, with so many houses empty, why not put people in them?  If it takes silly contracts to escape charges of "socialism,"  why not go through those motions?

It's the new normal.  Adaption will be key. 

I'm moving to a warm climate first chance I get. 

Sun, 12/05/2010 - 16:47 | 779939 ViewfromUnderth...
ViewfromUndertheBridge's picture

Friend of the GF moved to Spain and "bought" a house no money down over two years ago...he made two payments and then wised up, as nobody he knew there was paying...he is still there and the bank has made no attempt to foreclose...nothing.

At the rate they were buying, earlier this year, I think the main Spanish public pension fund will be 100% in Government Bonds by Christmas.

Sun, 12/05/2010 - 19:08 | 780189 chindit13
chindit13's picture

Rent with a call option on appreciation.  The last iteration of the credit bubble, though this does seem to give the plebes something for nothing.  Principal doesn't matter, just like with sovereign debt.  What matters is, can the debt be serviced so we can maintain the illusion that all is well?

Let there be rollover!

And the Lloyd saw that it was good.

Sun, 12/05/2010 - 20:42 | 780466 MyKillK
MyKillK's picture

Can you buy property in spain without being an EU resident?

Sun, 12/05/2010 - 22:14 | 780819 honestann
honestann's picture

Sheesh!

Why take a vacation and stay in an expensive hotel?

Buy a luxury property in Spain, never make a payment, and enjoy a wonderful, relaxing 2, 3 or 5 year vacation courtesy these criminals.

Sheesh!

Mon, 12/06/2010 - 01:57 | 781332 XPolemic
XPolemic's picture

According to the first link I found with the goog, EURIBOR 1Y spot is currently 1.526, so 35bips on top of that is 1.876, not too shabby. Interest only is probably less than rent.

LET THE GUD TAIMS ROLL!

Mon, 12/06/2010 - 04:09 | 781463 firerx
firerx's picture

How can anyone that's upsidedown like most american get refinancing. It won't happen, and that why no one is refing their mortgages. The banks won't even talk to you if your house is worth less that you mortgage.

Do NOT follow this link or you will be banned from the site!