The system of expropriations and real estate auctions: inefficient and harmful for everyone, but nobody does anything
A real estate entrepreneur is in crisis, has debts of 700 thousand euros, but an estimated assets of 1.2 million. So he should have no problem covering the debt. Instead, after countless discounts, his assets are sold for 242 thousand euros, money intended above all to cover the costs of the procedure, so the entrepreneur is left without assets and overburdened with debts.
Paradoxically, even the creditors were "screwed": in the end they lost the guarantee, but the credit was not satisfied.
There are 300,000 over-indebted in Lombardy alone, of which 100,000 without even a current account, now cut off from the banking system. it is expected that they will reach half a million with the covid crisis, when the moratoriums end, We are talking about numbers of several million throughout Italy, and we face the problem with a punitive and inefficient system such as judicial sales.
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The article The system of expropriations and real estate auctions: inefficient and harmful for everyone, but nobody does anything comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-sitema-degli-espropri-e-delle-aste-immobiliari-inefficiente-e-dannoso-per-tutti-ma-nessuno-fa-nulla/ on Sat, 27 Feb 2021 12:38:02 +0000.