Number of foreclosed property is growing in Estonia
19.10.2011, 12:20The amount of foreclosed property keeps growing in Estonia and there is an increasing number of people who may lose their property because they have guaranteed a loan of another person, reports Eesti Päevaleht daily.
Although banks claim that they are ready to find compromises with people who cannot repay their mortgage loans, Swedbank has foreclosed almost twice more property than a year ago.
The bank estimates that the amount can grow next year too.
Debt councillor Terje Lääts said that it is worrying that in addition to loan takers, guarantors who gave their signature to papers during the boom are in trouble more frequently.
“Guarantors did not realise their responsibility then and now there have been quite a few cases when even a complete stranger, from whom a signature was bought a few years ago, can lose his real estate,” said Lääts.
Lääts said that besides bank loans, the amount of people she has to help who have neglected payment of utilities bills and now the court executor is demanding payments is constantly growing too.
Representatives of banks stressed that the aim is not to sell someone’s home and if a client cooperates, he will be given sufficient time and possibilities to sell the collateral himself.