KBC selling my mortgage to Cabot Asset Purchases (Ireland)

Discussion in 'Mortgages and buying and selling homes' started by petitverdot, Jan 6, 2017.

  1. petitverdot

    petitverdot Registered User

    Posts:
    17
    Got a letter in the post from KBC this morning saying they are transferring ownership of my mortgage account to Cabot Asset Purchases Ireland Limited. Date of transfer to be confirmed. All private details will be passed on to Cabot.

    The mortgage brief history:

    Sold the mortgaged house in 2014 and was left with a shortfall of 55k which i have since being paying monthly at same 4.5% variable rate.
    New property found to move to in a few months. The mortgage approval on this had incorporated the negative equity from previous sale and was due to be rolled into one new mortgage. Like a negative equity trade across mortgage typically would.

    Questions:
    1)Now that they are transfereing to Cabot does this mean i will not be able to bring negative equity into new mortgage seeing as KBC don't own it after transfer?

    2)Are these asset companies like banks? What rate will i be charged and who sets the rate?

    3) Should i try renew AIP to bring negative equity with me into new mortgage to get lower rate.

    I intend asking KBC directly but whether their answers will have my best interest at heart i always doubt.

    Thanks
     
  2. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    32,437
    I don't think that KBC has made any announcement that they have sold loans to Cabot or anyone else.

    But I presume that they haven't sold any performing, secured mortgages.

    You might still get the full mortgage and be able to discharge the shortfall to Cabot.

    Or it might work in your favour. Cabot might do a deal with you.

    Cabot will set the rate, but as far as I know, they have not been increasing the rate on loans which they have purchased.

    Brendan
     
  3. petitverdot

    petitverdot Registered User

    Posts:
    17
    Thanks Brendan.
    Have you ever heard if it would be possible to do a deal with the bank before it is transferred over from them to Cabot.
    They obviously sell these loans at a highly reduced rate. I'm thinking if they sold it for 20% of what is worth, why would the bank not accept 21% settlement from me directly.

    I can't imagine these debt collection agencies are too friendly at negotiating.

    Thanks
     
  4. Repman

    Repman New Member

    Posts:
    2
    Interesting to hear any more info on this, we got the same letter on Friday on a 130k shortfall on a BTL (so unsecured now) that we have unsuccessfully been negotiating with KBC on. If anyone has info are Cabbot more likely to accept a full and final lump sum settlement? I'm sure there not as interested in 20+ years of small monthly payments...
     
  5. petitverdot

    petitverdot Registered User

    Posts:
    17
    I take it KBC did not entertain any one off payment of the shortfall? Why would a bank not take a one off payment from the customer if they are willing to sell to a debt collection agency at what is probably even less than what they would get in a customer settlement. Maybe it's part of the deal that they sell lots of these unsecured in bulk. Everyone gets to make money from the customer. The customer never seems to get a deal. Not saying that I want a way out of paying my negative equity, it's my bad luck they loaned me €300k on my own single wage in 2008 which dropped considerably in the subsequent years. However if banks and debt collection agencies are doing these deals together on my back, then I want something out of it too.