Financial and Mortgage Portfolio Overview
Loans past due are monitored closely
Foreclosure procedures are not expected to take more than 18 months
Highlights
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Íslandsbanki takes out a list once a month of all debts that are in arrears
over 30 days. The Bank keeps a close eye on a daily basis on all arrears
that have reached 55 days past-due; on a monthly basis, customers who
do not have other debts in legal collection receive a text message or an
e-mail
The legal publication is read daily and if debt is secured by collateral,
notifications of forced sales are received, in order to spot early warning
signals
On default, the first letter is sent out on the 7th day since default. The
second letter (intermediate collection letter) is issued on the 17th day
since default and finally, the third letter, the Final Warning, issued on
the 31st day since default
Mortgage loans past-due for 90 days or more are removed from the
cover pool
Foreclosure procedure
If the debt is secured, letter number two is a payment challenge 15 days
after the collection letter. A forced sale request is sent out 15 days after
a demand for payment is published by a policy witness or when a
confiscation of property is available. The sheriff issues a time when the
first forced sale takes place (can be up to two months after request).
Approximately 4 weeks after the first forced sale, the start of the auction
takes place and about 4 weeks after that, the final sale of the property
itself takes place. The process can take 6-12 months. If the debt is not
paid in full at auction, a request for enforcement is then made and an
unsuccessful foreclosure is requested, and the debt is then written off
and sent to the claims shift at Mótus (third party collateral)
From the time the case comes in for collection at 55-60 days in arrears,
the process can take from 10 months up to 18 months if there is no
response from the debtor
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August-September 2022View entire presentation