Vulture won't recognise Revenue liability

Peeperk

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Several years ago my wife and I came through life-threatening illnesses but as we were both self-employed our income suffered greatly and we fell into mortgage arrears. In time we agreed with AIB to sell our investment property which had about €300,000 in equity - comfortably enough to more than satisfy arrears, family loans and, crucially, Revenue. The property was cross-secured against our family home and unfortunately we didn't realise the implications of this. Incredibly, with the investment property on the market, AIB sold both loans to Everyday Finance/Link. With the purchaser waiting to sign the papers, Everyday/Link refused permission to sell unless all of the proceeds were remitted to Everyday leaving us with nothing to pay Revenue (a substantial sum which had built up because we knew we could cover it with the property sale) or other debts.

We have been led a merry dance by the vulture fund too upsetting to get into here but even after showing proof of Revenue debt and proof of income showing our ability to comfortably service the related mortgage on our family home they have been utterly intransigent and furthermore are insisting we put the house on the market at a price well above its market value - a completely unrealistic approach. Revenue is looking for its money and thus far we have been able to stall them because they are aware of our intention to sell but a final demand is imminent.

Is there any way to force or persuade the vulture fund to allow us to retain funds to pay our tax arrears from the sales proceeds? Are they within their rights to set the selling price? Is there a strategy here to force us to sell the family home?
 
Are you saying the sale of the commercial property would clear your debt with everyday/links?
 
No. It would clear all arrears and write down the family home mortgage by nearly 50% even accounting for the Revenue debt (well within our capabilities to service).
 
Did you have a firm agreement with AIB?

It is crucial that you act quickly to protect
the positive equity, If they appoint a receiver your problems will be far worse.
 
Everyday's mortgage puts them ahead of Revenue debt (unless the Revenue debt is NPPR or LPT on the specific property.)

Everyday will do what any bank will do: They will set a minimum price that they require in order to discharge their mortgage.

As Thinktank has suggested, if you do not take active steps to sell the property they could appoint a Receiver.

You might be able to do a PIA to re-structure the debt on the family home/BTL to provide you some breathing space to pay the Revenue. (The interest on the revenue debt is very high, and should therefore be prioritised.)

Jim Stafford
 
Good advise from Jim. However there maybe different regulations regarding your PDH (MARPS or CCMA). if you can pay and are in positive equity everyday/links will not respect or adhere to previous agreements with AIB. I would suggest you get legal advise and take action for the immediate sale of your commercial property to proceed. You need to deal with the revenue debt separate to your dealings with Links.

You should contact Jim or someone familiar with PIAs knowledgeable and experience in PIAs could take the stress out of the process for you.
Hope it's works out fair for you.
 
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