The Hypo-Vereinsbank swindle.
Have you ever heard of a German bank, going bankrupt? Not me. The reason: Banks are insured and ALWAYS INSURED, no matter if they get back the loans they issued or not. An example: You want to buy a house. Value: 250,000 €. The Bank finances the house. A few years later: 100,000 euros have been paid off. Suddenly you go broke. No more securities, you cant pay the mortgages, etc. etc.. What now? What about the remaining 150,000 euros plus interest you owe the bank? All lost for the poor bank? No way, jose. The bank is insured against such eventualities. The insurance company pays the bank the missing amount of money, which was not paid by you. The bank offers the house in foreclosure for sale. Proceeds go all to the bank, none to you. So the bank cashes in twice. Thats how the swindle works.
Hypo-Vereinsbank in 2002 provides the latest fraudulent example. Slogan of the Hypo Verteinsbank: "Just live, we take care of the details." We'll see. How does this bank takes care about the detail, while the gullible customer is "alive". Hypo-Vereinsbank swindle works or rather worked like this: A Hypo-Vereinsbank salesman sells (thousands of) apartments fully financed by the bank, for, lets say 100,000 euros, although the Hypo-Bank is well aware of the fact, that the property is only worth maybe half as much. The salesman pretends to investors or buyers of the appartment, that it (the mortgages) will be fully financed by rental income, including interest and tax benefits and that the client himself must pay or invest only 150 € per month. Sounds too good not to say yes, but in fact ist to good to be true. Because suddenly after couple of weeks or so the rental income is not secured anymore, now the bank wants the client to pay monthly MUCH MORE for the appartment. He cant. They forclose on the property and sell it by auction, plus cashing in the insurance. The client is broke and may, in worst cases, go to jail.
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„Der Rubel muss Rollen"
Christian Anders / Lanoo
http://www.christiananders.com/buch/rubel.shtml