Receiver appointed although only €10k in arrears and making full repayments.

[kieranmcs39]

My mortgage I have - its 330k . It's 10.3k in arrears. It's being fully repaid 1.6k a month, I used to live in Dublin. Had to move back up north 8 years ago , times got too tough. Got apartment let . So able to keep paying off mortgage and now back up to full repayments. A new mortgage admin. support team took over the admin. at start 2016. I then got a letter from them saying that they were appointing a receiver in August. I rang when I received this letter as I couldn't understand this. An admin. guy said it was a standard letter as they had not heard from me on arrears. I said my case handler from previous handler had said to keep up full repayments, then they would consider recapitalisation of arrears balance. I had done that. He said that all those staff were gone and I would have to fill out a new Industry Standard Financial Statement. I did this by deadline of 3 October, 2016. I rang and they confirmed got all documents and would be in touch. Had nothing since until today I got a letter from the receiver. I rang the company doing the mortgage admin. They apologised when they realised they had not communicated their credit committee decision to me not to recaplitalise. I've always cooperated and would have paid off arrears. They said they will get a manager to ring me today/tomorrow, but no guarantee that will change anything. Lost and a bit anxious. Any help/guidance greatly appreciated at this moment.

 

[Gerry Canning]

Gather your notes and records of calls .
Please , please , from now on, any agreement in writing , any communication in writing.
Send a reg letter outlining exactly how you have worked for them and request threat of receivership be removed.
It looks like you (trusted) their system , please don,t in future.

Contact the receiver, even by phone , give a short explanation and ask and get a proper contact person to write too..

Are you in negative or positive equity?

 

[TLO]

Also, have a read of this thread:

http://www.askaboutmoney.com/thread...-invalidly-appointed-and-a-trespasser.195955/

It discusses the appointment of receivers, and whether they were validly appointed.

Another thought, did you originally buy this property with the intention of living in it? If so, it may have the status of a family home rather than a buy to let, which could invalidate the receiver's appointment.

 

[Brendan Burgess]

It's 10.3k in arrears. It's being fully repaid

If you are in arrears, it's not being fully repaid.

I've always cooperated and would have paid off arrears.

Why didn't you pay off the arrears if you could have done so?

Arrears on a buy to let property is a very serious matter and if the loan agreement allows them to appoint a Receiver, they probably will do so.

Which lender is it?
Were you on a tracker rate?

Check the mortgage agreement to make sure that they are entitled to appoint a Receiver.

And, of course, pay off your arrears immediately.

Brendan

 

[Bronte]

If you are in arrears, it's not being fully repaid.

But he was told by them, having gone into arrears, to continue paying the full amount and they would look at recapitalisation of the arrears. So it appears he did that. But then they pulled the rug from under him.

What I don't understand is why he didn't go bankrupt up north eight years ago as he'd be debt free now and be out of bankruptcy.

I also don't understand the logic of the bank appointing receivers in a situation of a 330K debt where the loan is being paid, with a miniscule amount of arrears by comparison. And it would be pure madness if the property is in NE.

 

[Brendan Burgess]

Hi Bronte

We have not been given all the information to make such judgements.

The property may be in positive equity. He may have a good job with plenty of income. He is able to service the mortgage after all. He is able to pay off the arrears but has chosen not to for some reason.

If it's a cheap tracker, then it's worth the bank's while to appoint a receiver.

Brendan

 

[kieranmcs39]

Thank you for your replies. In answer to points raised. Yes it was my PPR when I bought it first. My wife and I lived in it. We both worked and lived in Dublin.

Its rented since we moved back . It was with BOS, now Tanager with administration by lapithus. It is a tracker, yes. The arrears arose due to a BOS mistake originally-they are still my liability. An error was made and no payments being were taken for 7 months. These have sat on account. I was told by case manager, to focus first for the last few years to get repayments to full repayment mode - then the final step would be to look at recapitalisation. I have completed that and have been in full repayments for well over a year.

In August I was given a default letter, a 10 day notice to pay debt left of 330k in full. When I rang, the guy on the phone said they sent it out as they hadn't any update , it was a standard letter. I talked about the recapitalisation of the arrears and the case manager previous that I had been dealing with that had suggested it to me once I was satisfying the full repayments step.

He said most of the old staff including the case manager I had dealt with had all changed. , as a result of a new administration team. I was asked to fill out new financial information and to put my recap. request in writing. I followed this up with phone calls . They received information and I was told it was being proposed to the credit committee for recapitalisation.

I got no word until a receiver letter earlier this week. One of the manager's said to me on the phone this week, that I should have been communicated the outcome of credit committee - which was to turn down recapitalisation. They apologise for not communicating that in writing or verbally.

I have said if I had known recapitalisation was not an option , I would pay off arrears as can do so at the minute. So they asked me to send in more info. today - but will not guarantee they will stand down receiver.

Equitywise, market value circa 300k and debt capital is 330k. We want to hold on to the property and although we have to add a bit to revenue to cover it we are now in position we can with our current jobs. Hope I have made sense here in answering questions as best I can.

 

[Brendan Burgess]

If it's the only property you own, it's covered by the Code of Conduct on Mortgage Arrears. They might not know that, so have a read of the CCMA and tell them.

I don't buy that it's their mistake. They took no payments for 7 months and you did nothing about it. At least 50% responsibility on your side.

But pay the arrears immediately.

Brendan

 

[Bronte]

Until Burgess mentioned about the bank wanting the tracker back this story made no sense. (loss making for bank).

Your treatment is unprofessional in anybodies book. But you made a fatal error in not backing up your phone conversations in writing. I suggest you now document this and send it off to them by registered post.

It seems you have added protection via the CCMA. No idea how this works, but maybe if you post the question on here, you'll get an answer on what to do with the bank about this.

 

[Bronte]

If it's the only property you own, it's covered by the Code of Conduct on Mortgage Arrears. They might not know that, so have a read of the CCMA and tell them.

I don't buy that it's their mistake. They took no payments for 7 months and you did nothing about it. At least 50% responsibility on your side.

But pay the arrears immediately.

Brendan

Why should he pay the arrears if the bank told him that they might recapitalise, which is what he apparently wants. Will paying the arrears stop the receiver.

The fact the bank is also responsible for his original arrears means they should be accommodatiog surely. They certainly have been giving him the run around.

Is the CCMA a big document. Would an ordinary poster on here be able to grapple with that? Is the appointment of the receiver incorrect legally because of the CCMA?

Even if the arrears are 50% his responsibility, he's up against the big boys who are able to throw every trick in the book at him to get him out. As far as I'm concered he did what they asked and they hoodwinked him by appointing the receiver. They didn't even inform him.

 

[Brendan Burgess]

Why should he pay the arrears if the bank told him that they might recapitalise, which is what he apparently wants. Will paying the arrears stop the receiver.

The balance on his mortgage is €330k and the arrears are €10k. If he does not pay the arrears, he remains in arrears and still owes €330k.

If he pays the arrears, they are cleared and the the €330k is reduced to €320k. There is no downside to paying what he owes.

There are plenty of upsides. In his conversations and in any future legal/FSO case, he will have a Receiver in place in an account which is not in arrears. That will look good for him and bad for the banks.

Paying off the arrears does not stop the Receiver. Only the bank can pull the Receiver. And they probably won't do even if he pays the arrears. But they might.

The fact the bank is also responsible for his original arrears means they should be accommodatiog surely. They certainly have been giving him the run around.

Not quite. He did not pay his mortgage for 7 months. He knew he wasn't paying it. He knew that arrears were accumulating. He is at least 50% to blame. It's possible that he is only taking the matter seriously now because a Receiver has been appointed.

Is the CCMA a big document. Would an ordinary poster on here be able to grapple with that? Is the appointment of the receiver incorrect legally because of the CCMA?

For most people it's readable.

If they appointed a Receiver without going through the MARP, then he would have a good case for telling the bank to pull the Receiver and he might well succeed in any court case or FSO case.

Kieran

You need to read the CCMA.
You need to read the mortgage contract.
You need to clear the arrears
You need to get legal advice. I suggest that New Beginnings would be worth talking to as they understand all these issues.

Brendan

 

[Johnsoner]

Kiaran, It seems like an unfortunate situation you have found yourself in. Do you mind me asking who the Receiver is? Most Receivers will at least go back to the chargeholder once the borrower tells them in writing that they have paid off the arrears after the appointment of a Receiver. In the case of the national banks they will then stand down the Receiver but given you are on a tracker and the fact that this is an investment fund I feel it is unlikely in these circumstances but as Brendan says not unheard of if you have a good safe job and a solid background. They may also look to discharge the Receiver but switch your tracker to a variable mortgage.

You should also look to get help from local accountant or financial advisor or new beginnings who will at the very least help to stall the process for another year.

 

[kieranmcs39]

Hi Johnsoner. Thanks for your contact. Yes it really has been unfortunate. The Receiver is Deloitte. I've contacted my local solicitor .

The case administrators who link to fund asked last week for my solicitor to confirm it was our PPR - that letter has just gone to them. I have been in constant contact with them and am waiting a call back to the case manager this morning .

On the arrears can I ask - do I just lodge them- I was going to ask this to the case manager this morning - I'm also waiting to hear from solicitors as I'm not sure do they go to receiver or do I lodge direct to my mortgage account.

The case administrator asked me to write an appeal letter+get the solicitors letter (above)- they told me these both get sent back to the original fund decision making credit committee internally - to ask for Receiver to be stood down, but no guarantee.

Local solicitor is fine (they dealt with original purchase and I know them) - so I had just contacted them before Brendan's post and contact details of New Beginnings.

I don't know now at this stage do I switch the case as New Beginnings have a financial/legal mix compared to my local solicitor.

Regards

Kieran

 

[TLO]

Okay, am slightly out of my depth on this one, but my instinct suggests:

1) Have your solicitor write to Deloitte, advising that the PPR status makes their appointment invalid, and insist that Deloitte stand themselves down, and threaten the usual "hell and damnation" that solicitors threaten.
2) In light of Deloitte's appointment being invalid, I wouldn't pay them anything. Just pay directly into your mortgage account to bring it up to date.
3) This is more a legal matter than a financial one. If your own solicitor is up to the job I would stick with s/he and not confuse things further by bringing New Beginnings in.

Chances are that if Deloitte are formally made aware of the PPR status then they will discharge themselves. And with the mortgage account up to date decisions by the fund's credit committee become irrelevant.