State Banks in Costa Rica have a portfolio of over 2,300 properties from the repossessions made because of mortgage defaults.
Tuesday, August 6, 2013
Nacion.com reports that "... the banks, Banco Nacional, Banco de Costa Rica, Banco Popular and Bancrédito had 2,336 properties in their possession, which represents a 35% increase compared to the same period in 2012." Of that total, Banco Nacional has the largest number of foreclosed properties with 60%.
"Collecting property is not part of the bank's business and it is not in it's interest. When someone absolutely can not pay, their case must be passed on to judicial recovery and auction processes are performed by the courts, " said Diego Chévez, head of the Unit of Foreclosed Assets at Banco Nacional.
Through the auction of these properties financial institutions try to recover the money that was borrowed against them, that is why some flexibility is offered in the internal procedures. "It is possible to negotiate reductions on sales processes which is done in accordance with the nature of each case. In this regards the bank has very flexible policies," said Gregorio Segura, deputy general manager at Bancrédito.
At the Banco de Costa Rica the volume of assets received in lie of payment increased by 70% compared to 2011.
A survey by Elfinancierocr.com between 6 financial institutions, including the four public banks in the country, revealed that in February of this year, there were 1259 properties in their possession, in contrast to the 884 properties that were reported in the same period 2012, ie there was a 42% increase.
While preparing a definitive ruling, a Costa Rica tribunal court ordered a mortgage lender to reduce the monthly fee paid by a debtor to its initial amount.
In Costa Rica, interest rate growth has led to significant increases in the fees paid by borrowers to banks and finance companies.
The four state-owned banks intend to lend $682 million in housing in 2012, 20% less than last year.
Publicly owned banks (National, Costa Rica, Bancrédito and Popular) have set a goal of granting ¢351,000 million ($682 million) in housing loans during the course of 2012, reported Nacion.com.
Between September 13 and 21, Banco Nacional will auction 70 properties on the Internet.
The platform for electronic auction - www.subasta-cccbr.com was presented by the Costa Rican Chamber of Real Estate and Banco Nacional.
Chévez Diego, director of Banco Nacional 's assets told Nacion.com, "The auction goes online today (12 September) worldwide, the first properties we have for investors will appear here.
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