who owns my spanish mortgage?

A question for all you legal and eagle eye brains out there - I have spanish mortgage with the Banco De Valencia.  I have discovered that without my knowledge they have 'sold' my mortgage to another company.  No further information is forthcoming from them about why this was done or who the company is.  

I now cannot apply to change or amend any of the mortgage terms as I don't know who the company is.  Banco De Valencia say they could try but don't hold out too much hope as the company does not have to respond to them about individual mortgagas sold in this way.   So where is my money going - I pay Banco De Valencia - they pay................?  What if I want to sell, who has the deeds....?

I have investigated further and found out that this is common practice across the world, most specifically in the USA where financial institutions are in difficulty and sell their debts on, called securitisation.  I have also found out that in the UK , in the case of mortgages, this is ilegal without the knowledge and consent of the person holding the mortgage:

'it is possible in the British jurisdiction to stop anyone who holds a contract for debt (the creditor) from passing that debt to a third party (debt collector) if they have not complied fully with The Law of Property Act 1925 and to hold them to the original contract and, therefore, to their stringent obligations to the debtor under the Consumer Credit Act, 1974. If they do not, the contract is void and they cannot collect or sue for recovery of the debt. And the debtor is at liberty to counterclaim even if they do sue the debtor: which is another reason why they don't do this. For this reason, no one talks about the The Law of Property Act, 1925. They will now!

http://www.opsi.gov.uk/RevisedStatutes/Acts/ukpga/1925/cukpga_19250020_en_1

136 Legal assignments of things in action:
(1): Any absolute assignment by writing under the hand of the assignor (not purporting to be by
way of charge only) of any debt or other legal thing in action, OF WHICH EXPRESS NOTICE IN WRITING HAS BEEN GIVEN TO THE DEBTOR, trustee or other person from whom the assignor would have been entitled to claim such debt or thing in action, is effectual in law (subject to equities having priority over the right of the assignee) to pass and transfer from the date of such notice:
(a) the legal right to such debt or thing in action;
(b) all legal and other remedies for the same; and
(c) the power to give a good discharge for the same without the concurrence of the assignor:

Provided that, if the debtor, trustee or other person liable
in respect of such debt or thing in action has notice:
(a) that the assignment is disputed by the assignor or any person claiming under him; or
(b) of any other opposing or conflicting claims to such debt or thing in action; he may, if he thinks fit, either call upon the persons making claim thereto to interplead concerning the same, or pay the debt or other thing in action into court under the provisions of the Trustee Act, 1925.

Does anyone know if there are there any property or financial laws in Spain that make provision for similar actions in Spain? 
 

My understanding is that this is how the whole credit crunch problem came about.  Banks sell their "assets" on to another bank or financial institution.

In the US the banks were selling off all of their high risk mortgages which is what triggered the worldwide credit issue.

However, this is the first time I've heard of this happening in Spain.

Hopefully Sharon will see your post and offer her advice.  You can try sending her a PM by clicking here.

Justin

Thanks Justin.  That's my understanding too, but we don't understand why our mortgage was considered high risk.  The only explanation that makes sense to us is that is was the bank's mortgage exposure that was the risk to them, but we don't really know.

I am reading more and more that the reasons for this lie in the fraudulent 'ponzi' schemes that the banks operated (illegally) like the Bernie Madoff sting.  I didn't know that this securitisation (selling on ) of your mortgage is illegal without the person having the mortgage knowing and agreeing to it (if I've got the legal jargon right - need help here).

It would be good to know if similar legal protection exists in Spain (probably a hope too far) as I'd tell the bank to swing for their money if the mortgage contract with us had been voided by their actions!   

Hi Jane,

Sorry to hear this has happened to you, like Justin yours is the first case I have heard of regarding this and I am sure others will be effected.    Although I am not sure if there is similar legal protection (maybe Maria can advise?) and remember there is no regulation of the banking system like we have in the UK,  there are a couple of bodies you could contact about this:

Maybe in the first instance, the banks client defender:

Defensor del Cliente

Banco de Valencia SA

D. Victor Beristain Lopez

CL Pintor Sorolla, 2-4

46002 Valencia

There is also the Banco de espana's complaints dept:

Link:   www.bde.es/servicio/reclama/reclamae.htm   (information in English)

AND

Sorry I cannot be of more help; although not connected to your circumstances it does seem a coincidence that Bco Valencia are now not offering mortgages under the subrogation terms for upcoming off plan completions.

If you ever wanted to sell I am sure your lawyer would be able to track down who holds your deeds but with regards to amending / changing your mortgage terms, if you are to carry on paying your mortgage to Bco Valencia? as normal perhaps this is something that is still within their power, at the very least to mediate.

Hi Sharon, thanks for this really helpful information.  I'll use those contacts to try to find out who owns the mortgage but don't hold out much hope.

Yes, it's very possible that there are many others in the same situation who will never find out until something goes wong, or they can't sell because they don't have the deeds .  On a lighter note I would just love to know if it is illegal in Spain.  Imagiine telling the bank that you're not ging to pay the mortgage anymore because they've broken the law !!

Hi Jane,

I hope you have luck and get to the bottom of it; the more I think about it I do feel you need a legal opinion on this.  How did you find out they had sold on your mortgage? and how long ago?  I am not au fait with this situation but you could point out to Banco Valencia that your mortgage deed states them has having a charge on the property.  If you ordered an up to date nota simple on the property I wonder if Bco Valencia would still show up as the mortgage entity? !!