Is an assignment clause mandatory?

  • Erstellt am 2013-08-11 08:08:56

nordanney

2014-09-03 09:35:38
  • #1
I don't see the "problem" either! What "bad" thing happens after the sale?
 

wewerad

2014-09-03 12:36:56
  • #2
I assume the following situation: I have taken out a loan with a 30-year fixed interest rate at 3%. Now, let's say after 5 years the interest rates rise to 6% and the bank sells my loan.

Now the question arises: can the new owner demand immediate repayment of the outstanding amount? - If yes, then I see the problem that my fixed interest rate has brought me nothing... - If the fixed interest rate can remain, then nothing changes for me and I see no problem...
 

nordanney

2014-09-03 12:57:23
  • #3
That's exactly right! There is an existing contract and it must be adhered to by both parties (interest rates, terms, securities, ADBs, termination options, etc.)
 

Jochen104

2014-09-03 13:57:01
  • #4


The fixed interest rate is called fixed interest because both parties are bound to the interest rate. If the fixed interest rate were not fixed, you (or the bank) could just as well conclude a variable loan. Usually, banks refinance such long-term deals accordingly.

Best regards Jochen
 

toxicmolotof

2014-09-03 14:28:55
  • #5
It is not about interest rate risks at all.
A contract is and remains a contract. Binding for both parties and also for the "buyer".
 

f-pNo

2014-09-03 15:53:28
  • #6
Now my two cents on this – although I’m treading on somewhat thin ice with this topic.

The assignment or sale of the claim has no impact on the borrower as long as they comply with the contract terms (installment payments).

However, under certain circumstances, problems could arise for them if the borrower gets into payment difficulties.
An agreement can possibly still be reached with the bank that originally granted the loan – e.g. deferral, reduction of the installment, suspension of repayment. In my opinion, this also depends somewhat on the overall customer relationship as well as the communication between the customer and the bank (advisor). That’s why it is often said that the local bank, even if it has a slightly higher interest rate, may be the better choice.
Under certain circumstances, such agreements may also be possible with the purchaser of the claim – this party also does not want the loan to go down the drain and suddenly have a default recorded in their books. However, I can imagine that such a buyer might be quicker to play the "house sale" card if it significantly reduces or completely eliminates their default risk.

For example:
The loan is already 50% repaid.
The (lending) bank keeps the overall customer and the long-term customer relationship in mind. They will possibly try to support the customer with the aforementioned measures so that they can get back on their feet. They still have the "forced" sale of the house as an option.
The purchaser of the claim only has their purchased loan portfolio in view. If a default looks imminent, they could possibly realize the remaining 50% of the outstanding loan amount plus lost interest income / advance interest through the house sale. I think there is indeed a higher risk of sale here.

For us, it should be said that the financial advisor had only offered us loans where the bank had waived the sale of the claim.
 

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