Diego Yumbla stopped paying for the used house he acquired in the Sauces area with a mortgage loan from Biess. He was canceling $ 345 a month for the $ 25,000 loan he acquired in 2013, but after he lost his job he was unable to continue canceling.
It began offering its accounting and tax advisory services, but with the crisis that worsened with the pandemic, its income became more complicated. “Of four small clients that I have, three do not cancel me,” says Diego, who sees how his debt that he acquired for 25 years is growing.
The possibility of establishing an arrangement for past due payments is distant because, he says, he does not have a source of fixed income to be able to restructure his debt, so he would hope that there will be a more accessible alternative for members who are in his condition.
As of December 2020, Biess reported 17,044 mortgage loan operations with more than 180 days in arrears. And the pandemic increased the number of affiliates who were unable to continue paying their loans.
Since the start of the pandemic, at the end of 2020, 5,519 transactions in arrears greater than 180 days had increased. “The impact of the pandemic on employment has undoubtedly been one of the factors that has impacted on arrears,” acknowledges the bank.
The portfolio with a default of more than 180 days amounts to 657 million dollars as of December 2020, refer data from Biess. Guayas, Pichincha, Manabí, Esmeraldas and Santo Domingo de los Tsáchilas They are the provinces with the highest number of transactions overdue for more than 180 days.
Marco Proaño Maya, former deputy and specialist in social security matters, considers that this portfolio in arrears is important and worries that the Biess will not be able to solve its finances due to having a strong past-due portfolio.
But, what to do before hundreds of affiliates who have lost their ability to pay to cover their debts? Proaño says that Biess must manage the affiliate’s obligations with weight and thus be able to manage well the resources that give it economic sustainability.
Days ago, the Biess began to publish collections notices Aimed at those who were in arrears more than 180 days (6 months). In these, he urges the immediate cancellation of overdue installments and interest to avoid the seizure and auction of the goods. Depending on each case, it offers novation, refinancing and restructuring options.
These announcements disturb several seized media workers who have failed to collect their settlements and who have fallen into default on mortgage loans. Israel Vélez, who for 16 years worked in Cablevisión, You owe $ 2,400 for 291 days past due on your mortgage.
He says that a few weeks ago he approached Biess to find out how he could restructure his debt, but they told him that he cannot do it because there was a pending debt from his employer.
For operations that have expired more than 180 days, the Biess allows a restructuring, which consists of modifying the original conditions of the credit. This applies when the debtor falls into default in the payment of the loan, registers the risk category established in the regulations in the case of restructuring and when other alternatives for repayment of the credit obligation have been exhausted.
This option can be accessed when the unpaid amounts related to default interest and insurance costs are covered.
Losing debtors, according to the Biess, can avail themselves of a refinancing or restructuring, as long as they meet the established requirements to benefit from an obligation arrangement. (I)
How to deal with debts in the face of job loss?
The unexpected loss of a job or a significant reduction in wages when significant debts are maintained represents a severe challenge for a family’s finances.
Greta Ferrín, finance and tax advisor, points out that in these situations the first thing is to analyze the debts (mortgage, personal loans and credit cards) that are and try to identify sources of income to cover part of those loans.
Establishing a process of austerity, avoiding unnecessary expenses and restructuring consumption habits, are measures that should be applied in these circumstances.
The specialist argues that loans such as the mortgage have a collateral effect, because they carry a real guarantee on the property in case of non-payment, so she considers that it should try to pay this type of debt over any other.
If there is no fixed income, Ferrín points out that it is necessary to look for other sources of immediate income, such as the sale of some good or household items to obtain the resources that allow the payment of interest on arrears and insurance costs; and begin the restructuring process.
Andrés Mórtola, financial specialist, says that if a person has fallen into default with a mortgage loan, they should review the refinance options and evaluate how much they can pay off and thus establish a new amortization table.
The specialist agrees that the path is to detect opportunities that allow income to be paid to the debt capital and thus pay less interest in the coming years. “Adjusting our expenses is important, while we get out of this crisis, that’s why the importance of having a good family budget,” he says.
Mórtola warns that there is a risk in seeking financing in an entity to cover an outstanding debt, as that will end up increasing the debts. “Looking for another loan is the last option we should take,” he says.
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