# Consumer deal with Pepper.



## soundforlife (18 Jan 2019)

Hi. this is my first post....

I am looking for some advice:
We bought our first home in 2008 and ran into difficulty and €20,000 areas before reaching a re-structured deal with PTSB
Three years on we have an new agreement with PTSB based on a recent completed SFS, this came into effect on 19th November 2018, we committed to increasing our payments by around €120 pcm. This includes a split mortgage which has been in place and serviced for three years to their satisfaction. We would argue that as we have and have had a re-structured agreement with PTSB we are a performing mortgage. We received one letter only stating the mortgage was (to simplify) sold to Pepper vulture fund early December 2018.

Our mortgage is €160,000
Our warehouse account is €110,000 (the €20,000 areas are included in the warehouse account).
Total owed €270,000

For arguement sake we are speculating the Pepper vulture Fund payed €113,400 (42%)

We are offering an additional 15% =

Our theoretical offer is €130,410 for the house and get it off their books. (For arguement sake lets assume this is market value in this case).

If we could raise this capital in full, is there a route for an individual (consumer) to deal with PTSB/Pepper and get a write-down and settle?

Look forward to hearing back,
Cheers


The 42% is based on this: _LONDON, Dec 6 (Reuters) - U.S. private equity firm Apollo has bought a portfolio of Irish home loans from Britain’s Lloyds Banking Group for 257 million pounds ($419.4 million), less than half their nominal value.
Lloyds, which has lost billions of pounds in Ireland since the financial crisis and is one-third owned by the UK government, said on Friday the non-performing loans had a nominal value of 610 million pounds. They were sold at a 58 percent discount to that value._


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## BilliamD75 (19 Jan 2019)

Why do you think you should get a deal, I am totally stunned or am I missing something, you owe the money 270k regardless of who owns the account, pay your bills please like everyone else, if your struggling pay what you can,


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## paulgee (19 Jan 2019)

BilliamD75 said:


> Why do you think you should get a deal, I am totally stunned or am I missing something, you owe the money 270k regardless of who owns the account, pay your bills please like everyone else, if your struggling pay what you can,


What a silly post.   The op is aware the fund bought the loan at a significant discount and in theory, would love to flip it.  If they can make a cool clean 20k  in 6 months, they may well jump at it.

It is a bit harsh of you to attack the op where they are trying to be as efficient as possible.


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## Gordon Gekko (20 Jan 2019)

It is a peculiarly Irish mindset alright.

A multibillion private equity fund uses its deep pockets to buy debt at ‘X in the Euro’.

Then every deadbeat in town thinks that he/she has a moral entitlement to an exit at ‘X in the Euro’ or ‘X in the Euro plus a small margin’.

Pay your debts! Deadbeats are the reason that everyone else is being royally screwed in terms of mortgage rates.


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## NoRegretsCoyote (20 Jan 2019)

My (fully-performing) mortgage would be sold at above par value today because interest rates have fallen since I took it out in 2013.

Say there is €100k outstanding, BoI could sell it on the open market for maybe €110k.

If payers of below-par-value mortgages should get a discount then the opposite should surely apply to holders of above-par value mortgages. By your logic BoI should be able to force me to raise funds to refinance my mortgage at its higher value just because its value has gone up!


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## Jim2007 (20 Jan 2019)

soundforlife said:


> We are offering an additional 15% =
> 
> Our theoretical offer is €130,410 for the house and get it off their books. (For arguement sake lets assume this is market value in this case).
> 
> If we could raise this capital in full, is there a route for an individual (consumer) to deal with PTSB/Pepper and get a write-down and settle?



That is not how they look at it.  In buying the block of mortgages, the purchaser fully expects that some of those mortgages will to total write offs, some will generate little funds and some will be fully paid off.  To be profitable they need to get as many as possible fully paid off.  There is no benefit to them to give you a deal if you are demonstrating the ability to pay, in fact the opposite, they will loose more over all if they give you and other payers a deal.

In deed when building the block of mortgages the seller needs to ensure they put enough good mortgages into the block to make it attractive to the buyers.  That is why some people's mortgages gets sold even if they are meeting their agreed terms.


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