# Are Banks Taking Less than Loans



## Commercial (24 Aug 2009)

I have heard numerous stories in recent weeks of banks accepting less than the amount than the loan in order to take the property from their books.
For example there is €1m owed on a property and the loan is in distress. The borrower is offered €600k and the bank accept this to clear the laon and the write off the rest of the loan.
Is this true? I reckon in some cases this would make sense as the banks ahve provisions made for such cases and in the case of NAMA, they may get less than 60% of the loan on the property!!!


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