Just to clarify, PTSB do not appear to be buying properties. Instead, it would appear that they will let negative equity landlords sell their but to lets (BTLs) on the open market at which point the difference between the sale price and the outstanding mortgage will be written off.
It is an excellent idea. For PTSB it helps clean up their ledgers. For negative equity landlords it is an excellent opportunity to exit a "no win" situation. The downside might be for tenants who may be asked to vacate so as to facilitate the sale.
For sale by the bank is mentioned in this piece in the IndoWhen contacted, Permanent TSB said it was writing to certain buy-to-let mortgage holders who have been in arrears for a long time, to explore their willingness to surrender properties for sale by the bank.
“For customers who are offered and who agree to a voluntary surrender in this initiative, the bank has agreed to clear any arrears or shortfalls that remain on the loan after the property has been sold and that it will not seek any further repayment by the borrowers in respect of the relevant mortgage.”
The bank said the offer is restricted to certain buy-to-let mortgages and is being made following a detailed review of the loan accounts by the bank.
The offer is limited to customers who the bank believes have no means of meeting the repayment terms of the loan or the shortfall debt which will arise upon the sale of the property, the spokesman said.
Why oh why do the people who messed up get the deals.
Why oh why do the people who messed up get the deals.
Why oh why do the people who messed up get the deals.
No one will write off the negative equity on my buy to let, because I am not in arrears.
This nonsense makes me so cross. These landlords should be forced into bankruptcy.
It is a practical solution.
It will apply only to people in negative equity and heavy arrears. They were never going to pay their mortgage anyway.
The courts system is loaded against the lenders. They can't do much if the borrower won't pay.
But this is the moral hazard issue. If you raise it in public, you get savaged.
Brendan
This nonsense makes me so cross. These landlords should be forced into bankruptcy.
This nonsense makes me so cross. These landlords should be forced into bankruptcy
Why oh why do the people who messed up get the deals.
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