BTL Loan Sold by bank to Goldman Sachs

[greeneman]

I have had BTL mortgages (2 flats in UK) with KBC for past 11 years. First 5 years were interest only. Then 2 years of full repayments. When these became too much I negotiated for a reduced repayment system for 5 years. Basically they get everything I net. I have 1 year left of this arrangement. I have never missed a payment.

In reality the operating income is low and at this rate it will take a further 20 years to pay down the loans from operating income. I am 60.

I expect KBC saw this and decided to offload To GS. KBC notified me in September. GS/Pepper have not been on to me yet.

My financial situation is improving soon so I probably could make a contribution to paying these off faster. They are hard to sell. One property has 40K equity, one has 3K negative equity. I have an offer for the one in negative equity and I think I will accept it and pay who ever owns the loan the 3K.

Its a chance to get out and I think I should take it. My CGT loss will be 40K.

I am thinking that there is an opportunity here if I can pay off Goldman Sachs/Pepper.
If they bought these loans for say 50p in the pound, would they take 60 p in the pound from me. ? They are hardly going to value the property and they wont know much about my financial position. I hope they would take an offer. Am I naive ?

Can anyone tell me how to play this with GS/Pepper.
Do Pepper read this site ?

 

[RedOnion]

Am I naive

Yes, a bit.
I'm not familiar with the make up if this sale, but the UK portfolio was largely performing. KBC just wanted out of the market, so the discount might not have been that big.

Do Pepper read this site ?

Probably.

They are hardly going to value the property

That's exactly what they will have done already as part of the offer, although based on a 'desktop' valuation. They're not accurate, but they'll have a fair idea of what it should be worth.

 

[dub_nerd]

Also, when someone buys a package of distressed loans they need/expect to make a killing on some of them, and a loss on others. It's naive to think they'd take some tiny margin on top of what they paid for a loan on an asset in positive equity.