Hi, I'm looking for some general advice as to whether an informal arrangement with a Vulture Fund is possible in the following situation, which we find ourselves in:-
We currently own 3 Buy to Let properties, all of which are in arrears and have recently been sold by the same Mortgagor to a Vulture Fund.
These properties are all in negative equity to the tune of €170,000 approx. combined.
Modest Family Home not in arrears and mortgaged with a different bank.
No other loans.
2 children in primary school.
We don't have any other assets.
All service charges, NPPR, LPT, income tax etc. paid up to date out of the rent received.
The original mortgages we received were interest only for 5 years then extended for another two after the crash. Eventually the Bank pulled the interest only and we came to arrangement with them whereby we paid them all rent except for expenses, repairs, income tax, etc.
We have continued to pay the Vulture Fund when we received the letter informing us to do so.
Both of us are working (one part-time) with a combined salary of under €90K gross.
Usual expenses of mortgage, food, childcare, etc.
Additional expenses of Occupational Therapy and Speech Therapy for both children with additional needs.
We would rather avoid Bankruptcy if possible, as one of our employers would have to be informed and a regulatory body having to be informed.
I assume a PIA would not be the best option for us either as our family home is not in arrears.
We recently received a letter from the Agents of the Vulture Fund requesting all arrears to be paid within 21 days. I take it the next step they will take is to appoint a Rent Receiver/Receiver over the properties.
We would be happy to sell the investment properties and give the Vulture Fund the proceeds of sale but I imagine this would not be enough for them. I suppose realistically I am asking how much extra would a Vulture Fund be expecting us to pay to settle with them? Not sure where we would get the extra money from as it will be impossible for us to take out a loan at the moment to pay them off as our credit rating will not allow it. If this restriction were lifted then I believe it would be possible for us to get a loan to allow us to settle.
I would like to be proactive about this and would be grateful for any advice from those who are familiar with this type of situation.
Thank you.
We currently own 3 Buy to Let properties, all of which are in arrears and have recently been sold by the same Mortgagor to a Vulture Fund.
These properties are all in negative equity to the tune of €170,000 approx. combined.
Modest Family Home not in arrears and mortgaged with a different bank.
No other loans.
2 children in primary school.
We don't have any other assets.
All service charges, NPPR, LPT, income tax etc. paid up to date out of the rent received.
The original mortgages we received were interest only for 5 years then extended for another two after the crash. Eventually the Bank pulled the interest only and we came to arrangement with them whereby we paid them all rent except for expenses, repairs, income tax, etc.
We have continued to pay the Vulture Fund when we received the letter informing us to do so.
Both of us are working (one part-time) with a combined salary of under €90K gross.
Usual expenses of mortgage, food, childcare, etc.
Additional expenses of Occupational Therapy and Speech Therapy for both children with additional needs.
We would rather avoid Bankruptcy if possible, as one of our employers would have to be informed and a regulatory body having to be informed.
I assume a PIA would not be the best option for us either as our family home is not in arrears.
We recently received a letter from the Agents of the Vulture Fund requesting all arrears to be paid within 21 days. I take it the next step they will take is to appoint a Rent Receiver/Receiver over the properties.
We would be happy to sell the investment properties and give the Vulture Fund the proceeds of sale but I imagine this would not be enough for them. I suppose realistically I am asking how much extra would a Vulture Fund be expecting us to pay to settle with them? Not sure where we would get the extra money from as it will be impossible for us to take out a loan at the moment to pay them off as our credit rating will not allow it. If this restriction were lifted then I believe it would be possible for us to get a loan to allow us to settle.
I would like to be proactive about this and would be grateful for any advice from those who are familiar with this type of situation.
Thank you.