Amount of Property in Foreclosure Sharply Up This Year
The amount of property in foreclosure is sharply up and the collateral of sureties is hitting the auction block increasingly often.
The recession did not result in mass foreclosure as some speculate, and to this day banks underscore what they say is a policy of trying to work with debtors. But the amount of real estate that is being sold off by Swedbank is growing rapidly, reports Eesti Päevaleht. The number of such properties is nearly double of that of last year.
Debt counsellor Terje Lääts says there is a "worrisome" trend that guarantees by loan co-signers are called in by banks. Many people gave their consent cavalierly during the boom, she said.
"The sureties were not aware of their responsibility back then but now in many cases they face forfeiture of their property," she said.
Lääts also deals with more debts that have been sent to collection agencies followed by a bailiff. In many such cases, apartment owners fell behind on utilities bills and only attend to their obligations once the bailiff gets involved.
Kristopher Rikken