BIESS Lists Three Options for Mortgage Borrowers in Arrears

The Banco del Instituto Ecuatoriano de Seguridad Social, known as BIESS, is pointing mortgage borrowers in arrears toward three debt-regularization options.

The alternatives apply to affiliates, retirees and pensioners with pending mortgage-loan obligations.

The Three Options

BIESS lists three mechanisms:

• Refinancing
• Restructuring
• Novation

The options are meant to reduce late-payment interest, protect the borrower's credit history and avoid legal actions related to nonpayment.

Who Each Option Is For

Refinancing applies to clients whose loans are current or have up to 180 days of arrears. The mechanism can extend the loan term, defer overdue installments without generating additional interest and allow grace periods.

Restructuring is for borrowers with more than 180 days of arrears on mortgage loans. The goal is to establish new payment conditions that keep the financing active and avoid loss of the home.

Novation modifies the original credit conditions when the borrower's personal or economic situation has changed. BIESS lists examples such as dissolution of a marital property partnership, extending the term to lower monthly installments or reducing the term to pay the debt faster.

How To Apply

Borrowers must enter the BIESS portal, select Arreglemos, review the available alternatives and choose the option that fits their financial situation.

The process requires an Ecuadorian ID number and BIESS password.

What This Means for Expats

This matters most for foreign residents who are affiliated with IESS or who have used BIESS-linked mortgage financing.

If you are current on payments, this is mostly a background housing-finance story. If you are behind, the key dividing line is 180 days: the options differ depending on whether the loan is below or above that threshold.

The practical step is to check the BIESS portal before the debt moves further into legal or collection territory.