Foreclosure Sale and Banks Nationalization

Foreclosures are sold according to rigorous laws, but there are situations when it is not possible to do it. If the foreclosed property could not sell according to legal issues, any creditor who, according to the law, can ask foreclosure on the mobile assets of the debtor can take it over for the price, which is stipulated by law. If this price is higher than the debt, the creditor may take the property only if filed, under the law, the amount of money representing the difference between the price and the value of the claim.

If many creditors want to take property under the law, it will be assigned according to the order of preference established by law. The goods foreclosed, which could not be recovered under this section, are not used about 6 months from the date of foreclosure. During this period, the executor can capitalize again these goods. If after the expiry of that period the goods cannot be recovered, they are returned to the debtor.

In the case of sales made under this section is not admissible any request abolishing sales awarded against the third party who paid the price, except for the case that there was fraud on the part of it. When the creditor has been awarded, the sale will be removed, if there are reasons for revocation.

To continue with, the last wave of problems, which hit the banking sector, has raised investors’ concern that the U.S. government will nationalize affected institutions such as Bank of America Corp and Citigroup, writes the Wall Street Journal. Such a dramatic step could help some customers of banks to get a loan easier.

Meanwhile, customers who have deposit accounts will continue to be protected by federal insurance, as there are today. However, consumers could be witnessing the closure of several branches of banks, of an enhanced standard in the banking products and a decline in service quality for customers. In addition, many shareholders will be removed in case of nationalization of banks, under the foreclosures crisis.

In the context of all the problems that hit the banks today, it raises a number of key questions about the collapse of banks and the impact of possible nationalization of their own.
What is the “nationalization of banks? A nationalized bank is government owned and led by it. The shock of the foreclosure crisis last autumn led officials to semi-nationalize the banking sector, nearly 314 institutions have already surrendered their shares to the National Treasury, in return for government funds TARP (Program for Saving Risky Assets), worth 350 billion dollars. The government could do the next step, taking ownership of everything with some banks, in particularly difficult situations.

Why should be nationalization of banks necessary? This makes sense only if banks are in danger of becoming bankrupt. In Western countries, nationalization is used most often as an emergency to rescue banks in difficult periods. It is usually used for loans to small and medium businesses, and for restructuring burdensome loans for consumers.

                                                

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