In past years, we were able to fund mortgages for American citizens purchasing vacation property in Mexico. The two financial conduits which provided the source of that capital were GMAC-RFC and GE Capital. Both sources stopped funding those loans in 2006-7 and our offerings, for Americans purchasing vacation property in Mexico, have been discontinued indefinitely.
GE Capital just sold its Mexican subsidiary:
Banco Santander SA said its Mexican unit agreed to pay 2 billion pesos ($162 million) for the mortgage operations of General Electric Co. to become that country’s second-largest home lender. Santander will gain a portfolio of about 24 billion pesos in the deal, which will be completed in the first half of 2011, the Madrid-based bank said today in a statement to Mexico’s stock exchange. Santander agreed to pay undisclosed financing costs, according to the statement.
I am unaware of how GMAC-RFC is handling its portfolio but it is my understanding that they have discontinued the Mexican mortgage product for Americans. Loans were also offered through New South Federal until its seizure by the FDIC, one year ago.