Vulture fund demand letter

P

Peabody

Registered User
Messages
64
Hi all.
We received a letter from oyster this morning looking for full repayment of btl mortgage. It’s in my partners name and there has been a few missed payments. Genuine reasons but I know they don’t care about them.
Truthfully I don’t care about the property. It’s in negative equity and no profit was ever made from it. What I do care about however is my home which is in both our names. Will we be forever in debt to them. Will we have to sell our home. Feeling sick at the thought of this. There is not a hope of repayment. He has bad credit and my income isn’t sufficient to cover any loans. Thanks for reading.
 
When you say your home is in both names are you saying that you both bought your current property together ? It really depends on whether there is any equity in the home which is his or not. BTW try not to feel sick or over worry here. A solution will be found which will not put either of you out on the street.
 
Yes we bought our current home together but he bought the btl with a different lender around the same time. Can they force us to sell our home if the btl is in his name only with a different lender. Btl is in negative equity but home isn’t- not by a lot anyway. They are saying if it’s not repaid in 2 weeks they will appoint a receiver. Do they knock on your door. Do you go to court. Feeling v naive and lost. Where do people go for information
 
Peabody said:
Will we have to sell our home.
Click to expand...

The short answer is No.

The longer answer is that they can certainly threaten all kinds of things. And the bad news is that this can rattle around for years.

The fact that it is a different lender is very significant.

If you want more advice from AAM you will have to put up the full details. Dates amounts of the purchase, details of the arrears etc.
 
Just be aware that a lot of these letters will threaten all sorts but are generally hot air and are there to push you to get a repayment. Don't fret from any of them and always do correspondence in writing. Do not ever entertain them if they phone or call (highly unlikely) to your home. Just tell them to put everything in writing and you will also deal with them in writing too. As pointed out read this thread and follow the template that's there to post and you will get good answers here.
 
You should post this information.
Information required for mortgage arrears and negative equity questions

He needs to check the mortgage agreement as it probably allows them to appoint a Receiver over the buy to let property.

If he engages with them, there is a fair chance that they might agree to write off the shortfall if he agrees to sell the property, especially if it's a cheap tracker.

If they appoint a Receiver, it will be sold at less than market value and there will be substantial costs to pay.

Your husband will owe the shortfall.

They could get a judgement for this and secure it against your family home.

That would mean that if you ever sell your home, his share of the gain would be used to clear the shortfall.

In theory, they could apply to the court to sell your home, but they won't do it, as Irish judges don't allow it.

But post all the information so that you can get a full answer.

Brendan
 
Brief update. Sorry for not completing the questionnaire but the long and short of it is he didn’t honor the agreement and they can appoint a receiver. They want him to sell the apartment himself through sherry fitz and come to an arrangement with them re shortfall. They’ll want to to look at his income but his contract his up next month and starting again late Jan feb. there is substantial arrears on management fees. How do we proceed. Do we let them take over the property and sell it themselves or take it on ourselves to. When do we tell tenants. Do we cancel direct debit. Has anyone an idea how much receiver fees and court fees are. If we sell it ourselves the shortfall would be 70k. If they sell it god knows how much it will be. We don’t know who to go to negotiate a write down. Completely lost
 
Whoa Slow down. We need more information to help you. First things first. You got a letter asking for the total owed. Have they now contacted you and asked you to sell the property and they will negotiate a settlement on the arrears ? How much rent are you getting from the tenants ? How much are the repayments as they currently stand ?
 
Bronte said:
Going forward, it would be best if the bank let Mr. P sell the BTL and they write down his NE. The more he demonstrates he cannot afford it and the more he shows he owns nothing, the more likely a bank will do a deal.
Click to expand...

Bronte's advice from six years ago is still valid today. Offer to voluntarily sell the BTL in exchange for a write-off of the shortfall.
 
I know deep breath,in a bit of a flap. He rang Cabot offered to pay the arrears but they said the entire loan was in default and their client would not accept this offer. They either want full repayment or sell it. They would then address the balance. Their explanation was that Ulster bank had already demanded full repayment before they bought the loan - we have no recollection or paperwork relating to this and there has been missed payments ( I only found out about these 3 weeks ago when filing returns ,atmosphere in the House is great at the moment by the way)The monthly mortgage repayments are 810. Rental income 875. First time it has ever covered the mortgage in 15 years- yes 15 years!. He wants to fight it and I’m resigned to it
 
Peabody said:
we have no recollection or paperwork relating to this and there has been missed payments (
Click to expand...
Ask them (in writing) to forward the written letter requesting this to you as you seem to have not received it. No offence but your husband is right to at least stand up to these people. how many missed payments ? What is the total outstanding debt and what is the current expected value if you sell ? You may be in a stronger position than you think.
 
No offense taken The missed payments are about 4K. I will ask them for that letter. Will it do anything though. They maintain the previous bank sent it. A few months ago I requested all information that ulster bank and Cabot had on us nothing back. Forgot about it. Regretting it now. Recorded the phone call almost felt sorry for him. He was just following a script
 
The estimated value is about 110/120. Mortgage is 150k management co looking for 4K plus 4K in interest. 5 missed payments
 
Peabody said:
A few months ago I requested all information that ulster bank and Cabot had on us nothing back. Forgot about it. Regretting it now.
Click to expand...
Send it again reminding them that all correspondence from now on must be done in writing. Reply to all letters from now on and keep copies of them. Until you get a copy of this keep answering that you are awaiting their response.
EDIT: So your arrears after selling would be about 50k assuming you can get an agreement about the management fees.
 
You need to establish if they can appoint a receiver without going to court. Your way forward is very different depending on the answer to this question.

If they cannot, (and I suspect that is the case) then by all means "stand up" to them.

If they can appoint a receiver without going to court, then the opportunity to sell yourself without a receiver being appointed is a valuable one, that you should co-operate with.

The answer is contained in your mortgage contract.

Bear in mind that you are not anywhere looking at your home being sold. Brendan said in post 7 above that in theory they could apply to the court to sell your home. As there is a mortgage with a different lender on the home, I think that would prevent a sale in any case, as well as the judges not allowing the sale of a home in these circumstances.
 
I’m after ransacking the house I can’t find an oyster agreement- letters about it but nothing physical. Have they just used the old Ulster Bank one?
 
Peabody said:
I’m after ransacking the house I can’t find an oyster agreement- letters about it but nothing physical.
Click to expand...
Are you talking about the mortgage contract ? Or some correspondence that states they can appoint a receiver ? I'm not sure of the legality of appointing a receiver. If they are saying they can based on the fact that UB sent out a demand letter previous then ask them for a copy of that same eltter when requesting all info on file. Remember these guys are hoping you don't know the law and chance their arm with such statements. Maybe someone here can explain how a receiver can be appointed in the first place ?
 
We have someone calling up today. He is a pip. He said we don’t need this but he’ll advise us and write any letters we need to do. Our accountant recommended him to us. I found letters from Ulster saying they can appoint a receiver if there was a default - he also had arrears with them too. Trouble is i can’t find that loan agreement. He really wants to fight this. I’m 50/50. Based on his current income I think there won’t be any write down. He’s a contractor and could be let go anytime. They also sent him a statement of financial affairs request. Do we exaggerate childcare family loans etc.Also thank you for your help and replies,people are in the dark and you are providing comfort .
 
You must log in or register to reply here.
Back
Top