AIB/EBS repossessions after long delay

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no_moolah

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I read an article the other day that a vulture fund who had purchased loans from AIB had started proceedings to gain possession of a number of properties that had defaulted in the recession. Original orders for possession granted +-10 years ago and the properties have been lying dormant for years. No attempt from AIB to rent out the properties and gain some income from the properties at the very least. Seems like such a waste and who will they come to for the shortfall? Has anyone had any experience with this from AIB or EBS?

A friend of mine is currently going through this. How many more people have been affected I wonder?
 
Yes we had a similar experience with an apartment that was repossessed and then left idle for years so much so that it significantly devalued. We cooperated the whole time and offered to forward the rent minus reasonable expenses to EBS but they had none of it. Instead opting to repossess it and leave it empty for almost 5 years incurring significant penalties and interest so much so that there was almost the same amount of debt outstanding after the apartment was sold as when we entered arrears!
 
tnegun said:
Yes we had a similar experience with an apartment that was repossessed and then left idle for years so much so that it significantly devalued. We cooperated the whole time and offered to forward the rent minus reasonable expenses to EBS but they had none of it. Instead opting to repossess it and leave it empty for almost 5 years incurring significant penalties and interest so much so that there was almost the same amount of debt outstanding after the apartment was sold as when we entered arrears!
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Sorry to hear this. It's really terrible to do this to people who have already suffered a great deal. Do you mind telling me if they chased you for the shortfall?
 
Yes the vulture chased the residual, well we chased them to deal with it as it was just in limbo accruing penalties and interest until we forced them to make some decisions and have it delt with once and for all.
 
There are two apartments in our development of (200 or so) repossessed by AIB, vacant for years, and still not on the market. Not great behaviour by them when there is a housing crisis.
 
tnegun said:
Yes the vulture chased the residual, well we chased them to deal with it as it was just in limbo accruing penalties and interest until we forced them to make some decisions and have it delt with once and for all.
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Its ridiculous that they didn't bear any of the brunt of leaving it dormant for years.
 
When people get to this unfortunates situations. When house are in repossession and not sold on rapid or in some cases left for years is the owner picking up the cost !!!! Or is the bank showing this cost elsewhere in the books .. . I doubt the bank are loosing to this. ....
 
Banemore said:
When people get to this unfortunates situations. When house are in repossession and not sold on rapid or in some cases left for years is the owner picking up the cost !!!! Or is the bank showing this cost elsewhere in the books .. . I doubt the bank are loosing to this. ....
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In my friend's situation the bank said that they were fully expecting her to cover the shortfall. All of their costs have been added to her debt. They took control away from her when the property was rented and then they left it dormant and didn't bother doing anything with it. I wouldn't be surprised if there will be some pushback now that they appear to be taking action on the properties again. I wonder what position a judge would take if they tried to sue someone for the shortfall when they didn't mitigate their own losses.
 
tnegun said:
Yes the vulture chased the residual, well we chased them to deal with it as it was just in limbo accruing penalties and interest until we forced them to make some decisions and have it delt with once and for all.
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How did you force them?
 
I had to persist with daily and weekly calls to the same guy spelling out exactly what I was prepared to offer now vs the time and costs they would incur as I was prepared to the FSPO and/or courts if they wanted to go that route. I'd had some advice and I had an arguable case with the FSPO so that was definitely a help as it made them second guess themselves/reconsider.
 
Its a good reason to do a PIA as the property can be surrendered at a certain value and any unsecured debt ultimately written off or serviced to a certain extent.
 
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