RIP's handed over to Vulture in late December 2018 by Ulster Bank

Discussion in 'Mortgage arrears & negative equity case studies' started by In trouble, 14 Jan 2019.

  1. In trouble

    In trouble New Member

    I am a small investor with three RIP's. One in full repayments and two in a reduced capital but full Interest repayment in place. They are tracker mortgages.
    My last contact with Ulster Bank said they would review my situation in Jan 2019 but next thing is that I receive notice that all three have been handed over to the VF. I am not in any arrears and always communicated and met with Ulster Bank and their payment restructuring. The RIP's have been in 100% occupancy for over eight years. The rent will not meet the mortgage repayments unless they are pushed out for the next 18 eighteen years. I retire in 11 years(will be 68).
    I am happy to get out and sell the properties. They are all in negative equity.
    There are no cross guaranties against the family home, Pension, Investments etc.
    How to I go about this situation.
    Under current market values:
    Amount owed = 755K
    Property Value = circa 550K
    Please advise best option and the process to expect. How to negotiate? I am not a negotiator. Guess the VF reads this forum too!!
  2. Brendan Burgess

    Brendan Burgess Founder

    You owe the money. It does not matter if there is "cross guarantee" in place or not, the lender can still pursue you for any shortfall.

    You need to provide the full information, property by property.

    Interest rate
    Term remaining

    What other investments do you have and how much equity is in your home?

    The rent might not cover the full repayment, but it's very likely that it is covering the full interest and therefore you are repaying capital and reducing the negative equity.

    If you have other investments which would help you to keep the properties, you should consider selling them.

    If the fund accepts the current deal, then it will probably be worth continuing it. But without the figures, it's hard to say.

  3. In trouble

    In trouble New Member

    Brendan, thanks for the reply. Below are a few figures:

    Current Value: 165K + 165K + 170K
    Mortgage(Arrangement): 1120 + 500 + 500
    Rent: 845 + 890 + 845 ( Increase by 4% pa)
    Estimate Monthly Expenses: €400 pm
    Interest Rate: ECB + 0.75%
    Term Remaining: 17 yrs +13yrs + 13 yrs ( would they consider extending the two to 17 years??)
    Other Investments: NIL
    Cash reserves: NIL
    Overdraft: €5K
    Credit Union Loan: €30K ( no Arrears repaying €650PM)
    Employment Civil Service: Retirement Lump sum estimated to be €78K
    1 Child 17 years - Disabled
    Wife in receipt of reduced Pension €880pm
    I am the main income renting in Dublin and travelling south on the weekend to be with the family Rent:€560pm
    No posh cars Reg 2009 ( Hyundai Accent / SKODA Octavia)

    Family home valued at circa €345K (3-4 Bed bungalow in estate) / Property is compromised as son to be paid €50K on our death or on sale of property because of modifications.
    Current Mortgage : €560pm
    Outstanding Bal: €75K