If my bank goes bankrupt: What happens to my mortgage?

Customers’ concern about the situation that banks are going through. The bankruptcy of Silicon Valley Bank (SVB) and the fall in the Credit Suisse market have caused strong uncertainty among savers. It is true that the money we have in the bank account is protected by the Deposit Guarantee Fund (FGD) in the event of bankruptcy, up to , euros per owner and account. However, in the case of mortgages or other personal loans the situation may be different. The reality is that, if the bank fails, it does not affect the mortgaged . In this situation, your debt will be assum by the new entity that is created . The conditions of the mortgage loan must be maintained , since the mortgage contract signed before a notary remains in force.

What happens to the mortgage if the bank goes bankrupt?

The reason why a bank fails is that it does not have enough funds to meet its responsibilities. In other words, when it does not have money to pay all its expenses. In that case, the entity presents a bankruptcy. Through which it will seek to reach Namibia Phone Number List an agreement with the wholesale. Banks that have lent it money, depositors, bondholders, among others, with the aim of settling the debt . If an understanding can be, the bank would not go bankrupt and would return to normal over a period of time. Now, if an agreement is not, the bank will initiate an orderly liquidation. National and international banks buy parts of the entity so that it can pay off its debt and, thus, avoid bankruptcy. However, if the bank reaches a really situation, for example, in which no entity takes care of it for the debt it has and is about to go bankrupt, the State can intervene and rescue it . After the fall of Lehman Brothers in and the subsequent economic crisis that it, there is a certain consensus in the countries not to let relevant banks fail.

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Is it possible to transfer my mortgage to another entity if the bank goes bankrupt?

If the bank does not reach an agreement with the creditors. It will be either by the State or by entities in buying it and assuming its debt. Here, the mortgagee can change their bank mortgage if they are not in having their Croatia Phone Number List loan with the purchasing entity. It is necessary to be clear that in no case would the mortgage be or to the detriment of the mortgagee. The user must adapt to the new entity, both by searching for their new. Nranch and assuming possible commissions that have no connection with the mortgage. Transferring the mortgage is possible, since the mechanisms that exist to change. Banks can be at any time, regardless of the status of the entity. To do this you have two methods: Subrogation due to change of creditor. This involves transferring the mortgage to another entity and there starting to pay from where we had left off with the previous bank. If you carry out the subrogation before completing three. Years with the mortgage , you will likely have to pay a commission for carrying out the operation.

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