Letter from KBC regarding loan sale even though I'm bankrupt.

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Eilish

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Hi,
I'm hoping someone can advise on this letter I just received. I have posted here before and received great advise which has been much appreciated. I just received a letter from KBC letting me know they are selling my mortgage loan. I went bankrupt in 2014 and the loan was also part of the tracker enquiry. They acknowledged my bankruptcy in the letter but say the loan account will remain in place until the loan has been repaid in full due to it being secured against the property. They have made no effort to sell the property and its still sitting there completely falling apart. I did offer to buy it back a couple of years ago and they let me have an engineers report and valuation done on the property and then just said they were leaving it on hold and didn't engage any further. My question after the long essay is, is this correct that I'm still named on the loan and they can transfer my data onto the buyer of the loan.
Thanks in advance.
 
Eilish said:
Hi,
I'm hoping someone can advise on this letter I just received. I have posted here before and received great advise which has been much appreciated. I just received a letter from KBC letting me know they are selling my mortgage loan. I went bankrupt in 2014 and the loan was also part of the tracker enquiry. They acknowledged my bankruptcy in the letter but say the loan account will remain in place until the loan has been repaid in full due to it being secured against the property. They have made no effort to sell the property and its still sitting there completely falling apart. I did offer to buy it back a couple of years ago and they let me have an engineers report and valuation done on the property and then just said they were leaving it on hold and didn't engage any further. My question after the long essay is, is this correct that I'm still named on the loan and they can transfer my data onto the buyer of the loan.
Thanks in advance.
Click to expand...

The property is still security for the loan so they can transfer the benefit of that security to the purchaser of the loan.

Can they transfer your data? Yes, that will be provided for in the mortgage, which is still valid.

Is it correct that you are still on the loan? Your debts are extinguished by the bankruptcy but the bank still has recourse to your property via the mortgage. It is correct that you are on the loan in the sense that there is a mortgage in your name securing the loan.
 
Hi Dazzler123,
Thanks for your reply, much appreciated. I wonder why the bank has left the house so long to end up in such a state that it would be worth a lot less than the value of the mortgage. They allowed me to get a valuation and engineers report to possibly let me buy the property back but then just said it was on hold and haven't put the property up for sale since. Obviously I'm in a much better position now than I was in 2014. Will Pepper look to me to recover the mortgage potentially? I don't even know what's owed at this stage as I haven't received arrears letters in a few years and am I entitled to that information seeing as my name is still attached to the mortgage? Thank you.
 
Dublin Abu said:
So the bank might have potential to recover all of some of the debt ?
Click to expand...

Only via the security for the loan, i.e. the property. The bank cannot get anymore than the money made from the sale of the house be that a forced or voluntary sale.
 
Eilish said:
Hi Dazzler123,
Thanks for your reply, much appreciated. I wonder why the bank has left the house so long to end up in such a state that it would be worth a lot less than the value of the mortgage. They allowed me to get a valuation and engineers report to possibly let me buy the property back but then just said it was on hold and haven't put the property up for sale since. Obviously I'm in a much better position now than I was in 2014. Will Pepper look to me to recover the mortgage potentially? I don't even know what's owed at this stage as I haven't received arrears letters in a few years and am I entitled to that information seeing as my name is still attached to the mortgage? Thank you.
Click to expand...

I suspect the tracker mortgage issue is the likely cause for the delays, followed by general inaction followed by covid.

Depending on the value of the property, pepper may look to force the sale of the property. The question is whether its worth the costs and hassle of doing so. If its worth at least 100k you might suspect they would try.

You are entitled to statements but if this is a loan in your name only, then i would not necessarily bother. The bankruptcy has extinguished the debt. The only reason you wojld want to contact them is if you really wanted the property back.
 
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