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"Created in 1988 BBS Abogados Asociados Asesores Legales y Tributarios specializes in all the fields that make up the law of the company."

Vulture Funds and Mortgage Securities

BBS Abogados Specialists in the Negotiation and Intermediation of "Vulture Funds".

At BBS Abogados we are experts in Vulture Funds and Mortgage Securities. Thus, taking into account the increase in foreclosures by Banking Entities, and above all, the causes of opposition on which the consumer can assert their rights, it is very important to know the existence of securitisations.

What is a vulture background".

They are venture capital funds that buy debt from troubled economies, close to bankruptcy, to subsequently pressure and collect the full value of that debt, in addition to the interest for the years owed, without attending to restructuring or write-offs.

What is a bank qualification

It consists of grouping a set of credit rights in the same portfolio. This portfolio is transferred to an ad hoc structure (companies, funds …), which in turn places it among investors. In other words, financial institutions transform illiquid assets into instruments to obtain financing, and in turn eliminate the risk of default. Mortgage securitization was born from Law 19/1992, it is the process by which financial entities “sell” their mortgage loans to third parties, eliminating their risk.

How are mortgage titrations carried out?

  1. Financial entities create a subsidiary company, which becomes the Mortgage Certification Fund (FHT).
  2. This Mortgage Certification Fund (FHT) acquires the bank’s mortgages (mortgage packages, mortgage participations, etc.).
  3. The Mortgage Certification Fund (FHT) issues the Title Bonds to investment funds.
  4. These in turn market them either to collective investment institutions or to private investors.
  5. These Securitization Funds fulfill the role of eliminating risk from the bank’s balance sheet, in turn granting them liquidity.

How to know if my Mortgage is “securitized”.

If you want to see if your Mortgage is securitized, you can consult the website of the National Securities Market Commission (CNMV), where banks are obliged to publish these operations. There, the interested parties can access the issuance brochure, according to the corresponding entity and the date of the signing of the mortgage, and the deed of incorporation, and thus know if their Mortgage is
in the hands of a “Vulture Fund”.

What is the Retracto action.

The right of withdrawal is a legal figure regulated by the Civil Code. It refers to the right of a person to keep the thing that a second person has sold to a third party, in exchange for the same price that the latter would have paid.

It is, thus, a real right of preferential acquisition that allows a subject to subrogate, with the same contractual conditions, in a sale contract on a specific asset.

It is feasible to file the withdrawal action, which will allow you to keep the house at the price for which it was sold, which is usually a much lower amount and even much less than the market price. You will enjoy more privileges than a conventional or normal mortgage debtor.

As indicated by numerous Judges in their Sentences, the purpose of this right is to avoid situations of abuse and speculation with disputed credits and that certain people take advantage of the difficulties that the debtor may have in collecting the credit, acquiring these at low Therefore, making use of this right of withdrawal, we can extinguish the debt by paying, to the “Vulture Fund”, the same amount that he has paid to the bank to buy our debt.

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