IBRC Mortgages Sold ; Should we keep paying IBRC ?

[Neoman]

Hi; Just wondering about what is likely to happen next ? As my mortgage is in arrears, It has been sold to Lone Star or Oaktree I think the other Vulture fund is called.
Has anyone any Guess as to how this will play out ?
What day is the point of sale ? and what happens to our mortgage money that we give IBRC from now on ?

 

[Brendan Burgess]

Hi Neoman

This is a very interesting questionand we don't really know. Here is my take on it.

If you have positive equity or small negative equity

You are the big losers. The new owners will be salivating. They have probably paid around 50% of the nominal value of the mortgage. Their objective will be to get you to sell and redeem the mortgage.

They will deem your mortgage unsustainable and suggest a voluntary sale.

If you do not want to sell your home, you will have to try to clear your arrears. If you can't clear them, minimise them. Pay at least the interest.

They will begin legal proceedings against you at some stage. However, they presumably will go after the worst cases first. The bigger the arrears, the more likely they are to get a repossession order from the court.

If you have big negative equity

I think that their strategy will be to get you to agree to a voluntary sale. They will probably write off the shortfall if you have no means to pay it.

So I see no point in continuing to make payments in this situation. You will need the money to pay a deposit on a rental property.

 

[cremeegg]

"Lone Star" "Salivating"

This brings up images of an unshaven guy in a black cowboy hat, with a colt revolver, getting ready to attack the homestead.

Lee Van Cleef raids Little House on the Prairie.

I agree with Brendan's point, if you are going to loose your house anyway, stop paying.

 

[Neoman]

They will be managed by Pepper, Initially anyway.
Its a case of is it a long term investment for these Vulture funds ? or are they 'get in make as much possible fast, and get out' .

If they want to make a killing in 3 to 5 years then sadly we are in trouble as I dont see them doing any deals/split mortgages etc and allowing us stay in a house with 50% negative equity.

So I guess it's a case of if we are a lost cause, no point throwing good money after bad