Question on statute barring BOI / Cabot mortgage

Discussion in 'Mortgage arrears & negative equity case studies' started by Carl W, Dec 16, 2016.

  1. Carl W

    Carl W New Member

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    Hi all,

    I lived in Ireland from 2005-2008 and purchased a property for €330000 putting down a deposit of €80000. Mortgage was with BOI. I left Ireland in 2008 and relocated back to the UK due to the financial crisis. I had no opportunity to sell the house without being in negative equity so had no contact with the bank at all apart from one letter in 2011 saying I owed them money. I never heard anything from BOI again, until last week.

    Last week I received a letter from BOI stating that as they had had no contact with me around the mortgage they would be passing my debt over to Cabot Financial and they would be in contact in due course.

    This week I recieved a standard letter from Cabot stating that the account has been passed to them for collection and was €144,000

    I have a couple of questions I'm hoping someone might be able to help with:

    From what I have read, mortgages take 12 years before becoming statue barred whereas unsecured debt is only 6.

    Now that the debt has been sold to Cabot Financial Services Ireland does this mean that the debt is now statue barred as the debt is not secured or does the 12 year term still apply?

    If the debt is not statute barred how likely are Cabot to progress this and can they do this across international borders?

    Timeline
    2005 - House pruchased €330,000 - Deposit paid €80000 - Mortgage BOI for €250,000
    2005 - 2008 Mortgage always paid ontime
    2008 - Left Ireland as made redundant / Stopped paying mortgage
    2011 - BOI sent later stating we owed them money for the mortgage
    2016 - BOI letter stating as no contact debt trasfered to Cabot
    2016 - Cabot letter stating they now manage the debt for €144000


    Thanks in advance
     
  2. vandriver

    vandriver Frequent Poster

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    The account being passed to Cabot for collection does not imply that the debt has been sold.
    Does the letter state that the debt has been sold?
     
  3. Carl W

    Carl W New Member

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    Good point. The exact wording is: Your account has recently been referred to us for collection by the Lender. We are now responsible for collecting the amount you owe as set out above.

    This would imply they are collections only as you correctly state. This still leaves the question that iIf the debt is not statute barred how likely are Cabot to progress this and can they do this across international borders?
     
  4. Brendan Burgess

    Brendan Burgess Founder

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    30,299
    If you still own the house it's a secured loan.

    They could sell it to Cabot but it's still secured.

    It's surprising that they have not initiated repossession proceedings.

    Brendan
     
  5. Carl W

    Carl W New Member

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    The house has already been sold. I checked online and it was sold about 3 years ago so it must have gone through the repossession process but I was never notified
     
  6. Brendan Burgess

    Brendan Burgess Founder

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    Hi

    OK, it became an unsecured debt

    But I am not sure at what stage its classification changed.
    The date of the order
    The date it was taken into possession
    The date of the sale?

    Brendan
     
  7. Brendan Burgess

    Brendan Burgess Founder

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  8. Carl W

    Carl W New Member

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    The answer to all of these questions is I don't know as I was never notified by the bank, even though they had my contact details. I'm going to have a good read through that thread, thanks Brendan.
     
  9. Brendan Burgess

    Brendan Burgess Founder

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    30,299
    The Circuit Courts do not grant repossession orders easily.

    If they were unable to serve notice on you or if their registered letters were returned to sender, they would have had to apply for substitute service which could have been a note pinned to the door of the premises.

    But if you had not paid in years, what's the issue? Do you feel hard done by that they repossessed your property?

    Brendan
     
  10. elcato

    elcato Moderator

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    How did they find you ? You must have given them an address at some point. More importantly, did you engage from your current address with either Cobot or the Bank ? If not, don't.
     
  11. Carl W

    Carl W New Member

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    No, I'm not feeling hard done by, just stating facts. :) As for contact, I'm listed on the electoral register in the UK so can only presume it came from there.
     
  12. elcato

    elcato Moderator

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    Yes but barring you having a very unusual name they are/were probably just chancing their arm and sending out a few letters to see if you would bite. Did you answer them in 2011 ?
     
  13. hubble

    hubble Registered User

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    I think that there is a strong chance this debt is statute barred. The action would have accrued when you defaulted. This is when the Statute of Limitations starts. I suspect that a receiver has sold the house leaving the debt unsecured. You have not acknowledged the debt or made part payment of Principal or Interest within the last six years.
     
  14. Carl W

    Carl W New Member

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    My name is quite unusual so could be easily found but at no point have I ever contacted or responded to them, even after the 2011 letter.
     
  15. Carl W

    Carl W New Member

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    Is there any way to find out, without asking the bank :)
     
  16. hubble

    hubble Registered User

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    Don't contact the Bank or Cabot. Do not respond to any correspondence. There is no way of being certain as to whether a cause of action is statute barred other than a court ruling. However, based upon what you say, the Debt is likely to be statute barred.
     
  17. Carl W

    Carl W New Member

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    I have this morning received another letter from the bank stating that I now owe them another €25000 in missed mortgage payments from the time I stopped paying the mortgage until the property was sold.
     
  18. hubble

    hubble Registered User

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    You quite possibly do owe those monies. However it is doubtful that the Debt is enforceable given the Statute of Limitations. Ignore that correspondence. If proceedings are issued then you will obviously have to defend them. Hold tough!
     
  19. TLO

    TLO Frequent Poster

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    110
    +1 on what hubble is saying. It is really important that you don't acknowledge, reply or respond in any way to these letters, or any other form of communication. To do so would reset the 6 year Statute of Limitations. The bank is getting really anxious as the 6 year period from 2011 is nearly up. Ignore, ignore, ignore.