Which Banks Have Lent Money to Developers Against Mortgages

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
02/11/2009 08:18

Becaue of registration, many buyers are now aware of banks that have lent money to developers against a mortgage on sold houses. If the courts uphold the "constructive notice" argument they may well be in trouble. Can we name these banks please so that we can act more prudently with our bank dealings?

ismet

Updated List (including all posts):

1. Koop Bank

2. Iktisat Bank.

3. Limassol Bank

malsancak


Joined: 23/08/2009
Posts: 2874

Message Posted:
02/11/2009 09:26

excellent idea Ismet!

Mal

rwilson


Joined: 14/04/2008
Posts: 87

Message Posted:
02/11/2009 09:40

"so that we can act more prudently with our bank dealings?"

I like that Ismet, like yourself very thoughfully done.



Raises an interesting question... "if people start withdrawing money from banks that have acted immorally, would they be more inclined to solve problems through negotiations instead of trying to evict people as their 'preferred option' "



The cyprus today article Koop bank "Robbery" makes interesting reading. http://www.esentepeolivegrove.com/ct.html



By the way, we're not only looking at "constructive notice" but "actual notice" Koop bank took copies of the contracts in full view of a number of witnesses!

rocky


Joined: 17/10/2007
Posts: 1749

Message Posted:
02/11/2009 10:41

this occurs elsewhere and in the last property recession in the late eighties many developers for example in spain mortgaged the developments after purchasers had paid for the property but before the purchasers were able to apply for the deeds (Escritura). Of course many developers went under owing the banks money an when the purchasers tried to obtain the title deeds they also had to pay off the mortgages taken out by the developers. When I signed my contract for purchase in NC my legal representative said that whilst a check could be made on my plot for mortgages when I agreed the contract it could not be done later??? anyway she also gave me some comfort in that as I was buying on a development she would regularly carry put searches for new purchasers and would be aware if this was happening.... I guess this was happning but not sure any prudent bank would be lending now..but historically yes as you suggest elko - can we name and shame the developers????

Aga Buyers A G


Joined: 04/10/2007
Posts: 488

Message Posted:
02/11/2009 10:43

we will add this list to the blog and update as and when - people need to be aware - very aware



ABAG



xxxxxx

sloan



Joined: 24/02/2009
Posts: 808

Message Posted:
02/11/2009 10:59

http://www.cyprus44.com/forums/3239.asp



3. Limassol

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
02/11/2009 11:46

I'll bet ALL the banks are guilty!

Geoff

Tenakoutou



Joined: 27/07/2009
Posts: 4110

Message Posted:
02/11/2009 13:51

Turk Bankasi claimed to us that they haven't and don't do this scam.

AlexF065


Joined: 07/09/2009
Posts: 271

Message Posted:
02/11/2009 14:27

All this seems to reinforce the facts that one should only consider a property when either fully built or second hand with a PTP in hand so it seems perhaps some Expats wanting to "go Home" could do themselves favors by allowing a buying who can prove they have funds applying for the PTP and perhaps renting off them until it comes through with the purchase funds in a deposit account with no right of withdrawal until both parties to the transfer of the property sign the withdrawal slip? would this work???

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
02/11/2009 14:51

I am certain that Turk Bankasi would not do it. Also certain that banks from mainland Turkey would not do it. I think they have to give 30% of their takings as credits here in Cyprus and instead of supporting the local investors they lent heavily to consumers at lucrative rates for buying cars etc.

ismet

graycoul


Joined: 23/04/2009
Posts: 493

Message Posted:
02/11/2009 15:22

iktsisbank defo dont

elko2



Joined: 24/07/2007
Posts: 4400

Message Posted:
02/11/2009 16:55

From the discussion I had with the chairman of Iktisat bank on Villa Owners Board I had the impression that Iktisat Bank is in a similar position. CAn we have more input on this please. My apologies if my impression is wrong.

ismet

karakum5c



Joined: 18/03/2008
Posts: 1021

Message Posted:
02/11/2009 17:15

If the interest rate looks high---- then there is a reason.



Greed breeds stupidity !!!

nilmoney


Joined: 29/12/2008
Posts: 122

Message Posted:
02/11/2009 20:21

Maybe it be easier to compile a list of banks which did not grant morgages on sold homes!



A Short list I guess!!

Mandy


Joined: 25/10/2009
Posts: 48

Message Posted:
03/11/2009 10:06

Actually looks to me that its only 3, namely Koop Bank, Iktisat and Limassol.



If its only a few banks, it shows it was not acceptable bank practice.

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 11:56

A good idea Ismet. You have to question the morals of the banks when they are fully aware that people have already purchased these properties. I'm going to start a new thread about which developers have taken out mortgages on properties/plots which they have already sold to unsuspecting buyers so the public can make informed choices.

pinkchilli


Joined: 30/11/2008
Posts: 689

Message Posted:
03/11/2009 11:57

I'm thinking of asking the GC propaganda machine to print adverts in their (Cyprus Airways, inc BA) flight magazines warning prospective purchasers of this scam.



Do you think they will also pay for ads to appear in flight magazines of CTA, Turkish Airlines, Pegasus?



I think we need to start a campaign to "force" advocates to warn prospective purchasers about P2P.



What about one of us to hand out warning leaflets at the crossing at Metehan, and one at Ercan!



Maybe not, next week when the Orams' decision is announced, all the builders/estate agents/developers/advocates can all pack up and go back to becoming farmers, etc.

kibrissibel


Joined: 18/02/2008
Posts: 562

Message Posted:
03/11/2009 16:53

I believe their objective on many sites with mortgages is for the mortgage comapnies/banks would be to extract extra funds from the current purchasers. It would be easier for them to do this than try and auction and sell houses in the current financial climate and the property problems that go with buying property here. I think they would weigh up how more a current owner would be prepared to pay to keep their property rather than chasing the developer. The banks etc are fully aware that people will not want to risk losing their homes and life savings. They know people have paid for their homes (sometimes in full) have paid for iron work, gardens, pools, furniture etc and will not want to walk away from this. I believe it is morally wrong for a developer to contractually sell property to someone and then to go and mortgage the land it stands on. A promise was made, and then broken, I believe this is fraud.