Banks Looking to repossess/appoint receiver Investment Properties with cheap trackers

Lets make this very simple - has anyone out there been subjected to their bank appointing receivers while they were making full interest and partial capital repayments?
 
robert 200 said:
Lets make this very simple - has anyone out there been subjected to their bank appointing receivers while they were making full interest and partial capital repayments?
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Yes, I'm personally aware of cases where that has happened.
 
Ok , so you are saying that a bank appointed receivers while the customer was making full interest and partial capital repayments on buy-to-lets , what bank?
 
Yes, I am saying that I am personally aware of cases where a lender has appointed receivers to rental properties where the borrowers in question were not fully discharging their scheduled repayment obligations but were meeting the interest on their loans

I think the best course of action in these circumstances is to try and negotiate a reasonable settlement or restructuring of the loans with the lender in question. If the OP doesn't feel confident doing so himself then engaging an insolvency practitioner to do so on his behalf seems like the sensible course of action.

Trying to be "clever" in these circumstances rarely works out well.
 
I didn't say I couldn't name the lender - I simply chose not to. Hope that's ok with you.
 
There is no need to name the lender. This happens with almost all lenders. Anyone who is not paying their full repayments on a buy to let is in danger of having a Receiver appointed.

If they have substantial assets elsewhere or equity in their home, then it makes it even more likely. If I were a buy to let lender and a customer had been paying their home loan in full while stretching out the cheap tracker buy to let, I would appoint a Receiver.

Sarenco said:
Trying to be "clever" in these circumstances rarely works out well.
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Couldn't agree more. As I pointed out, doing a Data Protection request could actually make the bank take more interest in this case.

Brendan
 
No need to name the bullies - we will see them all next week making fools of our elected representatives.

I think we should allow Longford to decipher the "fake news"

The Robert
 
robert 200 said:
Longford is perfectly entitled to request debenture documentation in order to make an informed decision of such magnitude concerning his future / pension.

To the best of my knowledge ( and I stand to be corrected ) no lender has appointed receivers if full interest and partial capital is being repaid.

The bank will bully , torment and threaten like Gestapo officers but they will continue to negotiate once this repayment level continues.
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To the best of my knowledge, no one said Longford was not entitled to request documents. Did they ?

As for your point that Longford is entitled to request the documents in order to make an informed decision - I think you may be missing the key point in Longford's scenario - the debt is not being serviced in accordance with the legally binding loan contract(s), so the decision may not be Longford's to make, if the current situation is not resolved.

Regarding the rest of what you have said, you are speculating based on whatever experience and knowledge you may or may not have... but it's no more than that, mere speculation. I don't think it's right for you to expect Longford to take a serious financial risk, based on your speculation. Do you ?
 
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Longford said:
Hi All.

Just got in from work

I don't want to sell or release equity from my home (anyway I would not get mortgage). As this is gone over my head. The properties are in Dublin and getting good rent. 2 apartments and 1 house. These properties have been rented for the past 10 years so probably not in great condition. Im on .75% over ecb rate

I have a permanent job with gross income around 50k
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Hi Longford,

Thanks for the reply.

I respectfully suggest that you get a suitably experienced and qualified party to assist you. They may be able to assist you in negotiating some form of compromise, or perhaps even a possible restructure of your debt (subject to various considerations).

The loan interest is in the region of €510 per month, I reckon.

How much more than the loan interest are you paying each month ?

Also, what is the gross rental income please ?

Ultimately, what I am wondering is do UB feel that you could be giving them more of the rental income (regardless of what the scheduled loan repayments actually are - I'm guessing they are between €4,500 and €6,500 per month excl. any arrears).

Because you have had interest only for 10 years, have you saved some surplus rental income each year, or has it all be used to pay tax on the rent earned, costs directly associated with the properties, or loan repayments ? If UB have been looking at this and concluded that you have not given them all net available rent for the last few years, this may be bit of a thorn in their paw.

It strikes me that if you could cover monthly repayments in the region of €2,800 - €3,000, then there are reasonable grounds to try and get the debt restructured. That would necessitate the current loan rate being retained and the term being put back out to 25 years (with all arrears capitalised). Depending on your age, they may not fancy agreeing to a new 25-year loan term, but then there is the option to agree a shorter loan term, but subject to a 25-year repayment schedule so as to keep the loan repayments a similar levels to those I am suggesting (with a bullet repayment at the end, most likely to come from the sale of the properties).

If the above won't work, then perhaps a deal can be agreed whereby one or two of the properties are sold, with net sale proceeds used to reduce the debt, then the remainder of the debt is rescheduled over an appropriate term, to get repayments close to matching the remaining available rental income.
 
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