Sick grandmother reveals week from hell as her home is sold to vulture fund and she discovers that s

Westgolf said:
Tap the head line, leads to full article.
Click to expand...

I did but there is no information about the problem is. She says she is paying interest but doesn't say that it is a formal arrangement with the bank. She still has the same protections that she has currently has so I don't see what the story is apart the health issue but that's just drama for the mirror.

I don't get the bit about the insurance either.
 
Does anybody have a view on what the actual implications are for somebody whose loan has been sold on like this?

Does the loan buyer have the right to change the terms of the loan, such as change covenants, increase interest rates (beyond how the market is moving) etc?
Does the loan buyer have any more/less rights to seize property than the bank that owned it previously?
Is there any precedent for this happening in other jurisdictions and did these buyers end up cranking up rates or repossessions?
 
Hi Zenith

The legal position is unchanged. All contractual obligations remain. Any deals done continue to be valid.

However, it's quite possible that a well run, efficient vulture fund might be more efficient and effective than an Irish bank in dealing with someone who is ten years in default,.

Brendan
 
Zenith63 said:
Does anybody have a view on what the actual implications are for somebody whose loan has been sold on like this?

Does the loan buyer have the right to change the terms of the loan, such as change covenants, increase interest rates (beyond how the market is moving) etc?
Does the loan buyer have any more/less rights to seize property than the bank that owned it previously?
Is there any precedent for this happening in other jurisdictions and did these buyers end up cranking up rates or repossessions?
Click to expand...

There is a very good chance that virtually nobody has a mortgage in this country that is with the bank that it took it's mortgage out of. Most of the loans are sold to subsidiaries or SPV's to enable securitisation. The bank that you took the mortgage out with is basically nothing more than a loan servicer. There is no legal change to any contracts. Consumer protection still applies. They are probably more open to deals because they are not trying to recover 100% of the loan value as they bought a discount.
 
Two follow-up questions -

1. Can you move your mortgage away from these providers? Obviously you'd need to find a bank keen to take your questionably performing loan, but lets say 10 years down the road you've been paying well and all that good stuff, could you move your mortgage to a KBC or any other bank?
2. Related to the previous question, but how are interest rates handled? If you cannot move provider (?) what is to stop these providers increasing their rates unreasonably?
 
A lender cannot stop you switching your loan to another lender if you can find another lender to take you.

There is nothing to stop any Irish lender, bank or vulture fund, from hiking rates on non-tracker mortgages. This is the main vulnerability.

Brendan
 
You must log in or register to reply here.
Back
Top