NO, a thousand times NO.
Perhaps the best way to explain our response is by reading the following article in the opinion, which humorously, was published online on Friday, June 8, 2007. We felt right at the same time entertaining the author's exposure on certain loans made by private capital. Lean, is priceless:
Investment Representation Private Equity Mortgage with three acts: Presentation and Nudo
I think most people will ring us. They have multiplied like mushrooms. And yet, sometimes I have the feeling that the operation is unknown. I say this because there are still people who resort to it, both from the investor side, and from the side of the debtor. Focus the shot and see how it develops this classic drama in three acts.
To begin with, and although the operation is usually very similar points, I will not talk about the typical private lender for life. I will not talk of that man who lends you money and that it is better for your physical and / or property, give it back. There are those who resort to law and mortgage guarantees, and must rely on the extensive experience of Eastern Europeans in conflict resolution through dialogue ...
From what I am talking about is refinancing these firms engaged in private equity investors look for suckers to plug financial holes evicted. The protagonists in this theatrical performance are:
- Refinance Company (ER): Advertise investment returns secured by mortgage and 2 digits. That if, curiously, they do not usually put your pasta into a business so buoyant. The commissions range, but rarely move to these issues below 6,000 euros. Refinancing company will also be responsible for coordinating with the notary signature and documentation to prepare / generate.
- Investor bold (IA): Usually people who mumbles as the Bank misleading. Rather mature age above 45, well positioned and with excess liquidity. The stock market and fixed income long seem very risky. But good vibes give references to mortgage loans, the statement to the notary, the wide coverage between investment and the value of the property in question.
- Financial Kamikaze (KF): Drowned debt and short-term situations that often lead to foreclosure. Usually delayed one or more mortgages on your home, and is in pole position of the debtors' records. Obviously the options that an entity would agree to refinance the gunboat is 0 1,000 million. Count the days waiting to be called the court .... Suppose you have a house worth 360 000 euros and a mortgage for 180,000 euros LCSA balance to this date and who once was signed by 200 000 ... ..
And now, as promised:
PRESENTATION:
ER comes in contact with our two friends. A KF will sell the bike with the philosopher's stone for your problem:
If, KF, your problem is that your credits CIRBE listed as in default, have an egg in Asnef notes, etc ... boy, you are not presentable. But we can give a hand painting. We can get enough money to put your credits up to date and regulate other debts, sacándote well as listings of default. Do you have arrears of 37,500 euros but between expenses and other I think with a loan EUR 50000'll fix it. As you're pretty and shiny, like a car Belgian import, we can take friends where financial institutions that are sure to give credit for all debts detus. because you've had bad luck ( have had money, I'd say). Interest? as a credit card, 20%, but boy, will be only for six months ... and then salvation. In addition, the interest you will pay in the end, you will not have to pay anything monthly. Not notice it. Already canceled the new mortgage you get along with the rest of your debt. "
On the other hand, ER is going to eat the ear to IA.
I have a fucking great investment option. Look at six months a 20% return. And, hey boy, you can do whatever you want, you must declare it in theory but I met people who do not. You know what I mean. The minimum amount is 50,000 euros Do not have 50,000 euros? It's okay, I'll get other investors who are in your situation and together you guys put that extra money cost. And hey, if you need your quiet pulp before those six months this will assemble on bills of exchange . You can take them to your bank and those you anticipate no problems , that will be backed by mortgage collateral. What you do not pay? You'd better do, is to guarantee your home, worth 360 000 sweet potatoes and a mortgage that is less than 180. If not paid, you keep your home and sell it later. It's almost better not to pay ....
KNOT:
Everyone is happy. They meet at the notary the three. IA has taken the money from the bank, avoiding prying questions of the director.
"What a cocoon, or that it was his money. He has no idea of how profitable. Luckily I could raise the 50,000 euros. "
KF breathe at last for months. Salvation is near.
"If the type is expensive but not much more than that card revolving I squeezed. Hell, because LCSA will not be such a solution occurred to me. Do not know how to treat customers. ER if you are a professional or the top of a pine. I think I like (Time modosita). "
ER is in a state of near mystical explosion ..
"Life can be wonderful, Salinassssssssssssssssssssssss ... ... ..."
The Notary reads KF parties issued a bill of exchange for 6 months worth 60,000 euros, and for IA, with the guarantee of a mortgage on your home. ER has clarified just before going to sign "
"The difference between 50,000 and 60,000 receive acknowledgment of debt in the letter is interest, this 20%. In addition, well, not express interest we save a little money in the face of the Treasury. "
Ahhhhhhhhhh.
Well, receive, receive what is said gets nothing. The 50,000 euros in IA are broken down into:
a) $ 10,000 go straight to the ER. (in some performances it documented and not in others, we're among honorable people and bills are dishonorable).
b) EUR 2500 notary costs, registration, agency, tax letters and the registration of the security thereof, and lifting of embargoes on the registration number, etc ... (NDA ... I have not stopped to adjust the cost and also varies CCAA)
c) ER keeps them 37,500 euros to pay his client's creditors, mainly LCSA before you run. So also end up leading him out of the default files.
In the Property Registry shall register as a second mortgage, after the LCSA a mortgage bills of exchange articulated in favor of IA, maturing in six months, amounting to 60,000 euros.
In the next post:
KF Will reunite their debts and worry only if Real Madrid win the league?
Will it give in to their noses IA Bank director explaining his brilliant financial transaction?
ER Will collect another commission in the final reunification of KF?
Does it really cost was 20% for KF? and most importantly, do we really care?
And Finance, will think of this?
Mortgage Investment Representative with Private Capital: Alternative Outcomes
In the previous post we had presented to our friends. We had also explained the fraternal relationship that had been sealed before the Notary. It is now the outcome. As I noted in comments to the first part, I love the timelines, parallel universes, alternative endings. There's always more of an end, although not all with the same odds. I therefore two finals, but also the factors to take into account that each mount the one you like.
Disney's cut
It is possible that our friend KF does no more treats in these six months. IA also sleep easy at night while thinking about the next operation will do with this monster of ER, and how to pack on the Christmas dinner with his brother about his financial eye. And that ER moves with recognized financial institutions to accept a mortgage that recasting the debt. Perhaps saving sign that mortgage before those six months, in a reasonable and viable codiciones. Maybe .... Maybe go to the Uefa Cadiz in the next 5 years ....
Because, as I said at the Santiago Segura interviews documentary called Sex Oral and write memory and adapted:
What if I have ever had sex with a complete stranger? Yeah, right. I went into a bar, exchanged glances with an aunt, and without saying anything, just 5 minutes in the bath so.
Nope. NO NEVER happened to me.
For that, I do not know any case like this, but certainly are like witches. Having Hayles.
Chances are other outcomes. And this is due to the existence in this play of the following subplots:
1. MORTGAGE LOAN infeasibility: Suppose that ER is really the search is at work redeeming the mortgage. I say assume, because some only sought the commission already sausage. But the thing is very sick. Because this bike preferential agreements with banks to get that mortgage later they are still in most cases an exercise in voluntarism advertising. Agreements exist, but commissions, and not to eat brown. And as you know the Bank is a brown, if our megaprofesional has been cleaned up and cleaned debt delinquency records?
Perhaps because ER did not do more to bring brownies to the office?
Perhaps because the simple registry note there is a second mortgage with bills of exchange?
Perhaps because of that second mortgage is a particular?
Perhaps there is some resistance to hand extracts the last year of the loan and the account associated with it?
Perhaps, perhaps, perhaps ... ..
And ER thinks it is time for KF move your ass, that's not going to do everything him. That he has already won the hardest.
2. Illiquidity of letters: And if IA needs the money ... This sucked. ER told him to go to your bank and that the anticipated money. For that, one day about his branch and that it poses dunce director, who stares at him with bovine eyes.
"You see, this is like a loan, even having this mortgage. We will anticipate the dienro you, but do not pay (and our experience is that they do not pay) to you
debited with the commission. Bring your personal income tax, your payroll, writing home, the criminal and the certificate of baptism and ... we'll see if what you give, because my boss does not like anything these operations. If at the end supports it, the type will be more expensive than we have in personal loan campaign. "
IA does not leave his astonishment ...
3. PROFITABILITY OF OPERATION: If there is a French method of depreciation, to speak of a return of 20% in this operation is to speak of a method for calculating Galician TAES, where the fundamental variables we add a variable called D: Depends ...
And that depends on the profitability of IA when copper. If charges due, without problems, or even before, your yield will be far superior in terms of APR, because the transaction was not a year. We could talk about a return to almost double the 20%. But if the operation is delayed, if you have to stop claiming in court, the profitability depends on the costs and deltiempo it takes to charge ... ayyyy, than harm.
But is that KF is not as simple as 20%. If KF gets to pay the debt within the agreed time, Debrie not forget that it was not 6 months, so the APR is doubled. But then I dont really should include the commission of a friend who has become ER. Friend KF, interest 10,000 10,000 avence more jerking commission will make that SAD is triggered by over 80% ... ... ... glups.
With respect to profitability for saving me comments ER.
4. WARRANTIES OF OPERATION: A RE you forgot to point out a number of temillas IA unimportant.
a) It is true that the LCSA mortgage is for 180,000 euros, even a little less after regularize their status. But he said that ensuring that mortgage debt is not only effective, but also the interest on late payments and legal costs of LCSA if aa KF bring him to trial ( mortgage liability ). And that coverage is approx. 150% of the loan granted limited, so LCSA has preferential right to recover the amount of 300,000 euros compared to him. The incredible shrinking warranty.
b) Nor has said that if LCSA, in these six months, and to further breaches of KF, leads him to court, it will get interesting. IA must appear in person at the trial lawyer and prosecutor, to enforce their rights. And what are they? Well, if LCSA auction just getting good this entity will have two options, or let a third will stay with him or calling its price to keep the floor. If at the end a third party as the friend Tristan , just staying with the good the situation may not be as happy as he expected. The first one is recovered LCSA and the remainder would be for IA. Be something?
c) And when reached maturity and does not charge LCSA IA is still doing nothing? IA shall, in all milk, to urge an enforcement proceeding. That if, when the time of the auction. Everything will get first to LCSA. Sound familiar story, right?
d) Neither has spoken of the ER to IA Azcarate Act or usury . The law is the beginning of last century and although it is not repealed is seldom used in court. But when I used is devastating, because if it is felt that in light of the law is usury, the contract is void. If KF can be shown that only received the money said the interests included in the letter should not be paid to IA.
5. DIFFICULTIES IN THE SALE OF PROPERTY: If KF trying to sell the property during those months will see some faces. And will the faces of real estate agents or buyers when they see the existence of this unusual second mortgage on your property. Some are frightened and they will back. How are you going to give a signal to someone like that? Others do not want to complicate life too much. And others, sniffing blood, he held it tightly.
6. PROBLEMS WITH THE CANCELLATION: Hopefully you will find a buyer. But this will require IA present at the notary on the day of signing the letters. Go find a IA. And pray for no points deducted at the Bank. Or worse, they have been granted a third, who is the current holder of the letters. Some people are said to buy this kind of letters. More least oo are the profile of companies specializing in undivided and maybe referenced through ER.
7. MONITORING OF FINANCE: IA, tax objector occurred, has no intention to declare such income from capital. How is Treasury going to find this operation between individuals? Certainly you may not find out, but has the means to do so ...
a) He asked for a cash refund of the amount in its branch in 500 notes. The money in your account is absolutely clean and transparent. As your account to the Treasury. These movements were recorded and a possible tax inspectorate little eye, which drives up the serial numbers in some cases ...
b) Finance has direct computer access or a copy of all scripts involving a notary. Without even asking permission. But in this case, to register the mortgage in favor of AI in the registry has been forced to liquidate AJD tax with taxable IA ... Well, you just need to let the IRS a path of crumbs ...
8. THE PHYSICAL LAWS OF APPLIED TO GAS GIMMETWO: I think it was Boyle who said that the gas has to occupy as much space as possible. For with the irresponsible financial and KF is the same. KF, almost certainly, will come to this point not a disgrace, but by a systematic lifestyle. Spending methodically over what comes in, giving your body like the consumer and without missing anything. Resorted to easy credit will butt as making use of the hard drug. And does anyone think that a credit will be rehabilitated junkie when it recovers again its ability to repay?. Again the financial gases will tend to occupy all of its resources. Dr. ER Him has alleviated the symptoms, but not cured cases.
These elements can build multiple outcomes. In my opinion, the most common is ... I will share.
DIRECTOR'S CUT:
1. After 5 long months ....
KF does not sleep at night. Missing a few weeks to expiration of the letter. The issues have been raised to the nth degree. ER can not solve the mortgage credit. The eLearning Awards website has done a tour of visits to financial institutions and telling his own case "sweetened" was brewing ... when it appeared the particular mortgage passed to establish a sanitary cordon around him. Evicted. LCSA has spoken with to try to take over but the response has been brutal.
"Look sooo nice, we do not like what that private mortgage. Although we do not directly affect the burden placed on the farm you know that this makes it difficult for you to sell on the market. In that sense you have worsened our viability and indirectly. No barracks because we can give you is fat to die, so to the first defaults are going to get you to trial. You are warned. "
And the first default has already arrived. And also notice from the district. And during this time is that KF has been turning to go into debt with loans faster than expected to remove the magical mortgage ER, which never comes. The situation becomes untenable. Fortunately, you have counsel and legal aid. Does not pay a penny, that something has to make the state by people like him.
IA for its part has also been notified as an interested party in the proceeding. Take diazepam as if they were Sugus. Talk to ER and this says to stay calm. What guarantees. That this property. But what the hell warranties. The money and now he wants money. And instead you have to pay a lawyer and a solicitor to represent him. The lawyer has been clear:
"The issue is complicated. The LCSA will be, so starting again the 180 000 euros. But the quotas will continue to accumulate and earn interest on late payments. Besides the minutes of the LCSA attorney also be included in the guaranteed amount of the mortgage. Put that $ 10,000 will remove them but not anyone. 190,000. You must be the IBIS the council for three years and has arrears of the owners of such works, all worth over 15,000 euros. Although such charges are preferred also do not appear to yours. Reza because it comes up for auction because the value of the property will plummet. Maybe you should bid to stay even with good. And beware if you do not Azcarate implement the Act. "
ER sleeps peacefully. It's a professional. No, not finance. The nose. No calls will affect any of the parties. He has done everything he could and is quiet. You are older. He's like a doctor. Heals the sick but some will die. And while you sleep, guess you have this man in the head?
"Life can be wonderful, Salinasssssssssssssssssssss."
2. At 18 months long ....
A year has passed since the theoretical maturity of the note. IA has started legal proceedings to that point are not prejudiced, but this at the tail of the procedure still has lamzado LCSA. This has been completed, and condemns LCSA KF to pay the balance credited to a 195 000 euros. It has already set for the next days the auction, with an output value 300 000 (amount by which the house was valued for mortgage).
KF has found a buyer at 280,000. No big deal, but going to auction is a lottery where you have much to lose. It is very unlikely to be any money for him in that case. The purchase has made their accounts and still has a beak for the transfer and leave rent
LCSA 195 000
IBIS + 15 000 CDAD
IA 60 000
To KF 10 000
The IA is carried by the devils. Almost two years years later going to collect the letter. With interest if, but it will suck up the costs of lawyers and the prosecutor, as well as the accrued interest. Numbers with the lawyer making his return would come barely a 6 or 7% annually. And thanks. If does not agree and falling sales, faces the awesome scenery of the auction. Swallow. Go if swallowed.
3. One year after the facts ...
KF continues to rent. Let's see what goes through your head.
"Uffffff to see when I just pay for these personal. Sure, the card's Carrefour are wrong. I have uploaded something that is not mine. Do not forget me next year sign up for social housing. See if you touch me, that the subject is impossible. And I say that all the Spanish have the right to home ownership, no. Speculator so no one can buy .... "
IA, unlike others, if one writes ...
"And this letter I have to pick me back to the Treasury, what will? For no good, for sure. By the way I'm going tomorrow to pick it up and see if I find out about an investment in repurchase bonsai .... And this letter from the bank? Hell, go shit in interest. They're thieves. As ER and KF, and judges, and legal system. Not because it does not protect people like me. The Administration is also guilty. "
ER is a winner. Life will smile, tiki-taka ...
"Let's see if the franchise business. I can not let my know-how is not developed. I give back to society what this has given me. I like the Lexus .... "
