# Sick grandmother reveals week from hell as her home is sold to vulture fund and she discovers that s



## Brendan Burgess (23 Aug 2018)

*Sick grandmother reveals week from hell as her home is sold to vulture fund and she discovers that she is developing dementia*

Her husband Peter has a serious heart condition and has spent ten years battling lenders to save their home in Bundoran


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## Sunny (23 Aug 2018)

Dramatic headline!! And then they follow it up with a no details!!


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## Westgolf (23 Aug 2018)

Tap the head line, leads to full article.


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## Sunny (23 Aug 2018)

Westgolf said:


> Tap the head line, leads to full article.



I did but there is no information about the problem is. She says she is paying interest but doesn't say that it is a formal arrangement with the bank. She still has the same protections that she has currently has so I don't see what the story is apart the health issue but that's just drama for the mirror.

I don't get the bit about the insurance either.


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## Zenith63 (23 Aug 2018)

Does anybody have a view on what the actual implications are for somebody whose loan has been sold on like this?

Does the loan buyer have the right to change the terms of the loan, such as change covenants, increase interest rates (beyond how the market is moving) etc?
Does the loan buyer have any more/less rights to seize property than the bank that owned it previously?
Is there any precedent for this happening in other jurisdictions and did these buyers end up cranking up rates or repossessions?


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## Brendan Burgess (23 Aug 2018)

Hi Zenith

The legal position is unchanged.  All contractual obligations remain.  Any deals done continue to be valid. 

However, it's quite possible that a well run, efficient vulture fund might be more efficient and effective than an Irish bank in dealing with someone who is ten years in default,.

Brendan


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## Sunny (23 Aug 2018)

Zenith63 said:


> Does anybody have a view on what the actual implications are for somebody whose loan has been sold on like this?
> 
> Does the loan buyer have the right to change the terms of the loan, such as change covenants, increase interest rates (beyond how the market is moving) etc?
> Does the loan buyer have any more/less rights to seize property than the bank that owned it previously?
> Is there any precedent for this happening in other jurisdictions and did these buyers end up cranking up rates or repossessions?



There is a very good chance that virtually nobody has a mortgage in this country that is with the bank that it took it's mortgage out of. Most of the loans are sold to subsidiaries or SPV's to enable securitisation. The bank that you took the mortgage out with is basically nothing more than a loan servicer. There is no legal change to any contracts. Consumer protection still applies. They are probably more open to deals because they are not trying to recover 100% of the loan value as they bought a discount.


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## Zenith63 (23 Aug 2018)

Two follow-up questions -

1. Can you move your mortgage away from these providers?  Obviously you'd need to find a bank keen to take your questionably performing loan, but lets say 10 years down the road you've been paying well and all that good stuff, could you move your mortgage to a KBC or any other bank?
2. Related to the previous question, but how are interest rates handled?  If you cannot move provider (?) what is to stop these providers increasing their rates unreasonably?


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## Brendan Burgess (23 Aug 2018)

A lender cannot stop you switching your loan to another lender if you can find another lender to take you. 

There is nothing to stop any Irish lender, bank or vulture fund, from hiking rates on non-tracker mortgages.  This is the main vulnerability. 

Brendan


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## losttheplot (23 Aug 2018)

Similar story here. 'Heartless PTSB' sold her loan to a vulture fund. Nothing in the article about what the impkiimplica are.

https://www.dublinlive.ie/news/dublin-news/dublin-mothers-mortgage-sold-permanent-15057873


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