# Loss of Property: FSPO Mediation



## PFS7979 (11 Sep 2019)

Hi,

Due to attend mediation at FSPO office shortly.

In summary, property was sold on voluntary sale for loss. Later transpired lender had overcharged at early stage of mortgage. This error was unique to the account. Lender failed to apply tracker after coming off a subsequent fixed rate period. Property sold on false understanding of interest rate being a high variable rate.

Property was pdh initially before moving in with partner to their house. Rent could cover tracker repayments. Also lost option of choosing this house to live in with family @cheap tracker versus higher rate on spouses home.

Compensation paid was c 25% of the omv of the house. Appreciate any opinion/share experience of fspo mediation on tracker related issues. 

Tks


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## Brendan Burgess (11 Sep 2019)

Tough one. 

The Ombudsman will have to decide if you would have sold the property had you been on a tracker rate.  

I think you need to show the p&l account 



SVRTrackerRental income€15,000€15,000Mortgage interest€20,000€5,000(loss)profit(€5,000) €10,000Tax€5,000Profit after tax (€5,000)€5,000

Make sure to steer the argument away from the repayments.  Because, even low interest rate trackers are usually cash flow negative. 

Another good reason for holding on to such an investment property is that any price increase up to the price you paid would be exempt from CGT.

Don't make false or exaggerated claims. For example, if living in that house was a reasonable option, then by all means raise it.   

Were you in arrears?  

Were you pressurised to sell? Or did you just make that choice? 

I have seen a similar case where the person sold his investment property and bought a new house with his girlfriend.  It seemed fairly clear to me that, tracker or not, he would have had to sell the house anyway to get a mortgage for the new home.  However, that doesn't seem to apply in your case.

Brendan


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## PFS7979 (11 Sep 2019)

Thank you Brendan.

To clarify.. its a mediation meeting with a view to settle. Not adjudication by Ombudsman.

Much appreciated


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## TrackerThieves (12 Sep 2019)

I thought the way it worked with the ombudsman's  office is they will always try to resolve it a through mediation techniques first with both parties having the option to skip this stage. If there is no resolution during the mediation period it then advances to  the investigation phase which they will then  adjunicate on when this phase is completed


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## PFS7979 (12 Sep 2019)

TrackerThieves said:


> I thought the way it worked with the ombudsman's  office is they will always try to resolve it a through mediation techniques first with both parties having the option to skip this stage. If there is no resolution during the mediation period it then advances to  the investigation phase which they will then  adjunicate on when this phase is completed



You are correct.

I hope mediation will be successful.


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## Brendan Burgess (12 Sep 2019)

PFS7979 said:


> To clarify.. its a mediation meeting with a view to settle. Not adjudication by Ombudsman.



I understand that.

However, you will have to decide before the mediation about how much you would be looking for. Then if that is offered during the mediation, take it.
If not, go to adjudication.

Brendan


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## Seagull (12 Sep 2019)

If you can provide figures to back the amount you're asking for, you're more likely to be listened to.


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