Your mortgage sold to a third party

Much talk on this and on your rights for acquisition of the debt at the price it was sold to the third party ( bank, fund, vulture fund...)

Do you know of this? Were you ever communicated by the bank on the sale of your mortgage debt to a third party?

Cheers from Algeciras!

We had a mortgage with GE, who in turn told us they "created a new company" to deal with their mortgage book because they didn't want the portfolio any more. Can't remember the name of the new company, there is a thread on EOS somewhere. Would be good to know if we come under this scheme.

Mark

This was my thread asking questions: https://www.eyeonspain.com/forums/posts-long-21951.aspx

From the response from a employee, definitely sold on.

Mark

Hi Maria

The mortgage book has been sold on once again apparently, 2 weeks ago. Is there a way we can find out what the amount the new company paid for the debt is and if we could have the opportunity of purchasing the debt at a reduced rate?

Thanks

From my point of view, you do have now the 9 days established by Law. Since reception of the notice of sale. Did they send a communication to you?

Apparently a letter has been sent to the property, but I haven't been there this year. They are going to send me a pdf copy. The letter was recently sent, not sure when. The lender representative has said:

"Approximately 2 weeks ago a company called *removed* purchased the *removed* portfolio.  We have sent out a Welcome Letter to the property in Spain.  Again this does not affect your original mortgage conditions and *removed* are still the service provider for the loan."

I am assuming that there is no requirment for them to offer me the opportunity to purchase at the lower rate then?

Thanks

This matter is currently under Preliminary Ruling to the European Court of Justice:

http://eur-lex.europa.eu/legal-content/EN/TXT/HTML/?uri=CELEX:62016CN0096&from=ES

Preventively, it is good you activate the request to the entity/entities

Do mortgagees have the right to identify where they want all communications of this urgent nature to be forwarded? Or alternatively would they be expected to use some form of mail re-direction process? For that matter does such a facility to redirect mail to an address abroad exist in Spain?

It would appear that many may not be recieving these notices that require timely action, so this would appear critical to the administrative process.

What would be the best way to activate the request please Maria? Should I just write stating I wish to exercise the right to purchase my property debt at the rate purchased by the new business, or is that too easy?

Thanks

Dear Mark:

Yes, a registered letter to the acquirer asking them for the price they bought your debt as a way to activate your buy-out rights is enough for the activation. Let´s see what they answer!

M

Ads:

Parties agree in the contract on an address for communications regarding the mortgage contract

Thanks Maria. When I find out who the company is and where they are, I will write and ask. I don't suppose writing to the company that is servicing their portfolio counts does it, as I know who they are?

Mark

I received a reply from the servicing company:

"The law recently changed and it states that this may be considered when it deals with “crédito litigioso” credit in legal dispute. This is very complicated and can be a applied to very few clients.  Unfortunately this is not your case or that of the majority of the clients. The mortgage portfolio has very recently been resold to *Company name*.  Your mortgage conditions are still the same and the Service Provider continues to be *Company name*.  Apart from the change of ownership of the debt there is no changes for the client."

So it seems I am not one of thise lucky enough to benefit. That said, I borrowed the money, so it needs paying back, so I shouldn't be surprised.

Mark

Which presumably begs the question have you been denied this opportunity due to circumstances beyond your control I.e. time constraints associated with this procedure which you were possibly ? denied due to them not advising you in a timely and formal manner?

Just a thought...

European Commission is analysing Spanish Legislation regarding this.

IMHO Banking compliance as a whole needs reviewing by the European Commission if the truth be known Maria, given the extraordinary malpractices that have occurred during this last decade, and how this has significantly compromised all too many innocent citizens. 

There is little point in having compliant structures in place if inadequate monitoring and effective TIMELY enforcement measures to deter such abusive behaviour are not in place from the outset nor followed through to provide greater accountability and transparency going forward.

Innocent citizens are now understandably cynical of the rhetoric displayed in BANK’s mission statements and the hypocrisy that sadly accompanies such..... If we learn anything from this it is that self regulation does not work in reality and there is growing need for trusted independent structures that protect innocents from all too powerful financial institutions.

But also early preventative administrative structures( mandatory registration, Bank Guarantee registers etc ) to deter potential conflict of interests and hidden agendas from the outset!

Thank you once again for your educative post, Maria.

https://www.eyeonspain.com/blogs/costaluz/18269/legal-tip-1456---spanish-law-finance-regulators-and-hedge-funds-business-examined-by-european-commission.aspx

This message was last edited by ads on 09/05/2018.

Fully agree with you, Ads. 

You are very welcome!

M