BoI selling mortgage of deceased Borrower

Hi all,

I Just wanted to get opinion on the following scenario. I assisted my late sister with her mortgage negotiations throughout her 5 year battle with cancer. She had 2 mortgage protection policies assigned to the Bank as she had taken a top up to finish her home. So the mortgage covered c 150% by the 2 policies. Numerous SFS submitted and partial payments/moratoriums agreed so mortgage was never in long term arrears. In the week she passed, I arranged 1 policy be paid out to BOI on terminal illness claim. This paid down the mortgage by over 50%, the balance being more than covered by the 2nd policy.

After her death, solicitors instructed to handle affairs (basically ensure BOI exercise assignment on the 2nd policy)

What subsquently happened was BOI sold her mortgage 3 months after her death, didnt engage with solicitor. The vulture fund sent a private investigator who doorstepped my niece quizzing her who lived in house and left her very upset.

I should add my sister was divorced and no assistance from ex with mortgage or raising kids.

In summary, is it normal for BOI to sell mortgages within short months of a borrower passing away? Rather than wait and clear loan from the mortgage protection policy?

Why did the second policy not pay out, to clear the remaining debt?

I think you'll find that your sister's sad passing had nothing to do with the sale of the loan, but that it was likely sold within a bundle of loans that were deemed non performing, by the Bank. Bank's have sold these portfolios regularly, given the requirement to hold excess capital to provide for them, along with the complex level of work required to manage the loans.

MrEarl said:

Why did the second policy not pay out, to clear the remaining debt?

I think you'll find that your sister's sad passing had nothing to do with the sale of the loan, but that it was likely sold within a bundle of loans that were deemed non performing, by the Bank. Bank's have sold these portfolios regularly, given the requirement to hold excess capital to provide for them, along with the complex level of work required to manage the loans.

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The loan was within an agreed treatment until a few weeks before her death.

I suspect that BoI agreed with the buyer to sell all loans which met certain criteria.

BoI couldn't cherry pick a few of them to keep them back.

The loan was in arrears so it was sold.

If they looked at the loan on an individual basis, they would not have sold it.

However, it's no loss to the estate. It's BoI's loss and the vulture's gain.

Brendan