BOI sells mortgage of my deceased brother to Mars Capital
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BlackandBlue
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Did your brother have life insurance to cover the mortgage?
Brendan Burgess
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Let's be clear here - the arrears are irrelevant.
Your brother's estate has assets and liabilities.
If his assets exceed his liabilities, then the Executor must sell the assets and pay off his liabilities. It's not complicated.
So if your brother has a house worth more than the amount due on the mortgage, the house must be sold and the mortgage cleared.
If the mortgage is worth more than the house... well the house must still be sold and the proceeds go to the bank to clear the mortgage.
If he has other assets then they should be used to pay off the shortfall.
I don't really see what you are trying to negotiate?
Brendan
That doesn't really make any sense.
I'm assuming your late sibling was not married and had no children.
So by the Succession Act, his estate is divided equally between your parents.
Its seems from what you have posted, that only your mother was living at the time of your siblings death, in which case all of the estate went to your mother.
And before the sibling's estate was settled, your mother passed away.
So now the next question is - did your mother have a will and if not do you have other siblings?
He had no life insurance.
Sorry my post want not clear. He had mortgage arrears. There was approximately €100k equity in his house. As the house was in bad repair I tried to negotiate with the bank to to see if I could offer 30k less than the arrears & I take possession of the house. They wouldn’t reply to me & I then find out the sold house to Mars capital. He died in intestate. His only surviving parent was his mother. As she was elderly she passed her rights to me. She passed away a few months after him. She had a Will passing my brothers affairs to me. He had no other assets. I wanted to hold onto his house as it’s the only thing I have left belonging to him & because of its segmental value.
My question is can a bank sell his house to a vulture fund without notifying me? How do I now deal with Mars capital?
He had no life insurance policy.
It still is very unclear what happened when
Could you give dates as to when your brother died
Did someone apply for and get Letters of Administration from the Probate Office
If so, when?
Was your brother's estate administered and his assets and liabilities clearly listed
The Bank did not sell your brother's house, they sold the mortgage on his house. They are quite in their rights to do this
Are you the only surviving next of kin?
Could you give dates as to when your brother died
Did someone apply for and get Letters of Administration from the Probate Office
If so, when?
Was your brother's estate administered and his assets and liabilities clearly listed
The Bank did not sell your brother's house, they sold the mortgage on his house. They are quite in their rights to do this
Are you the only surviving next of kin?
I am so sorry you lost your mother and brother within a short space of time. It must all be very difficult for you.
I think trying to negotiate with BOI over arrears on a mortgage on a house of a dead relative is the wrong approach. Once he died, the debt needs to be paid. Either fully from his estate, if there are assets to cover the debt or partially if the assets are less than the estate.
What you can do if you wish for sentimental reasons is purchase the house.
Say the house is worth €300K, the bank is owed €200K, you purchase the house for €300K. This money goes into your brothers assets. His estate pays his debts, €200K to the bank, €7K funeral expenses, say €7K fees, and €7K other costs. Your mother’s estate receives the residue of €79K. This passes to you along with the rest of your mothers estate.
You cannot negotiate the amount owed to the owner of the mortgage if the estate is valued more than the debt. Why would they take less? You can of course ensure all their calculations are correct.
Do you have a solicitor handling it all? I would recommend it to you to ensure everything about both estates is done in the correct order etc.
Best of luck.
I think trying to negotiate with BOI over arrears on a mortgage on a house of a dead relative is the wrong approach. Once he died, the debt needs to be paid. Either fully from his estate, if there are assets to cover the debt or partially if the assets are less than the estate.
What you can do if you wish for sentimental reasons is purchase the house.
Say the house is worth €300K, the bank is owed €200K, you purchase the house for €300K. This money goes into your brothers assets. His estate pays his debts, €200K to the bank, €7K funeral expenses, say €7K fees, and €7K other costs. Your mother’s estate receives the residue of €79K. This passes to you along with the rest of your mothers estate.
You cannot negotiate the amount owed to the owner of the mortgage if the estate is valued more than the debt. Why would they take less? You can of course ensure all their calculations are correct.
Do you have a solicitor handling it all? I would recommend it to you to ensure everything about both estates is done in the correct order etc.
Best of luck.
Thank you for your kind words.
I’m still not getting answers though.
1. Can BOI sell a loan to vulture fund without notifying me, the executor of the estate?
2. Mars now have bought the loan, presumably bought for a lot less than was owed on the house. If they sell the house do they then have to release the equity? (I guess not).
3. Does anyone have the name of a good solicitor. My local solicitor doesn’t have a clue about banking law.
Letter of administration issued late last year.
I’m still not getting answers though.
1. Can BOI sell a loan to vulture fund without notifying me, the executor of the estate?
2. Mars now have bought the loan, presumably bought for a lot less than was owed on the house. If they sell the house do they then have to release the equity? (I guess not).
3. Does anyone have the name of a good solicitor. My local solicitor doesn’t have a clue about banking law.
Letter of administration issued late last year.
You are getting a lot of good advice here.
Yes
They can't sell the property without an order to do so.
This is nothing to do with "banking law". If there even is such a concept.
Great, so proceed with settling the estate.
The debt on your siblings house will have to be settled.
You do that by either
a. Selling the house & redeeming the Mars Capital mortgage
or
b. Raising a mortgage in your own name & redeeming the Mars Capital mortgage.
Is the property empty or are you living there?
Did your mother leave a property or other assets to you?
Gordon Gekko
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They can sell the loan to Mars. Try negotiating with them. Failing that, sell it. Sorry for your loss.
Brendan Burgess
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Again it's worth stressing a few things.
1) There is nothing to negotiate here. His mortgage must be cleared by the Executor.
2) The Executor must act within the law and sell the house and clear the mortgage. He can't delay things to force Mars to negotiate.
3) The Executor can sell it to you if you can raise the money to buy it.
4) There is no need for a specialist solicitor. Any solicitor can do this. I am guessing that your solicitor explained all this to you repeatedly, but as you did not like what you heard, you thought he hadn't a clue about banking law.
1) There is nothing to negotiate here. His mortgage must be cleared by the Executor.
2) The Executor must act within the law and sell the house and clear the mortgage. He can't delay things to force Mars to negotiate.
3) The Executor can sell it to you if you can raise the money to buy it.
4) There is no need for a specialist solicitor. Any solicitor can do this. I am guessing that your solicitor explained all this to you repeatedly, but as you did not like what you heard, you thought he hadn't a clue about banking law.
Steven Barrett
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Do not put yourself under stress or financial pressure to hold onto the house. If it is not in good repair, it will cost you even more money to get it up to date. And what will you do with it then? Rent it out to strangers? Or else you will do nothing with it and it will end up in an even worse state. Surely there are some belongings in the house that you can hold onto as a reminder of your brother? As well as the memories. Properties are too expensive and are a constant cost to be held onto for sentimental reasons.
Not necessarily.
Without seeing the parents will & given the timing here; it would be a fair guess that the siblings property is not specifically mentioned.
So the OP is the owner of the property & can keep if they wish; however to do so they will have raise a mortgage in their name & redeem Mars Cap.
There's is some time leeway here though & if the OP is able to do so that might be a path to keeping the property.
OP says property is not in good repair; can it be brought up to habitable condition? Deep cleaning, paint & new carpet can do a lot.
Rent out the property via Ukrainian scheme & collect €800 with no tax or let at market rate and estimate tax. See which is the better deal.
You should be able to collect rent for the next 18 months or so & position yourself to take out a mortgage to redeem Mars.
Is this all worth doing?
It depends. Location, condition, value of property, value of outstanding mortgage, OPs financial standing will all factor.
You didn't answer if your mother left you other property as well?
Brendan Burgess
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We might be arguing over nothing here.
I don't think that the OP will be the owner of the property until after probate is granted and title is transferred.
The title cannot be transferred until the mortgage is cleared.
Your post could be interpreted by the OP that he inherits a house with a mortgage attached. He doesn't.
Brendan
Agreed.
But neither must they sell; as our best guess is the parents will doesn't mention the property.
I'm also making a best guess that the OP is the exec / administrator of the estate & so can act in that capacity.