Why did ptsb sell my Buy to Let loan to Start with only one missed payment?

PatrickJ

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167
Received letter this morning. Buy To Let tracker (1.1%) sold. One missed payment i.e. €600.00

I have approx 18 years left on the mortgage. Firstly, can they force me to sell the property and secondly can they take the tracker off me and / or put a receiver in place? I have intentions of clearing the €600.00 this week.

I'm concerned I'll be forced to sell.
 

Brendan Burgess

Founder
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39,136
Received letter this morning. Buy To Let tracker (1.1%) sold. One missed payment i.e. €600.00
When did you miss the payment?

It seems unlikely that ptsb included you in a sale portfolio back in May over one missed payment.
Was there any other retructuring or history of arrears?

It's terribly important to prioritise paying tracker mortgage loans over all other loans, including your family home.

Brendan
 

PatrickJ

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167
Hi Brendan,

Yes, there was a history of arrears i.e. have failed to clear off the €600.00 after numerous promises.

I take full blame.

Will I loose my tracker with Start?
 

Brendan Burgess

Founder
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39,136
As it's a Buy to Let, they might appoint a Receiver. But I suspect that if you clear the arrears and stay clear, you should be ok.

I don't think that they can just take your tracker, but they might make withdrawal of the Receiver conditional on removing the tracker. I think that this is unlikely. But, as I have said, anyone with a tracker mortgage should make it an absolute priority so that there is absolutely no danger of losing it.

Brendan
 

Jim Stafford

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472
As it's a Buy to Let, they might appoint a Receiver
A unique feature (very unique!) feature of many of the PTSB mortgages is that the fund can only appoint a Rent Receiver on buy to lets. In order to sell the property they need to get a Court Order for Possession, which is a slow and costly process.

The fund's inability to appoint a "normal" receiver helps open the door to negotiations.

Jim Stafford
 

PatrickJ

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167
Can a receiver be appointed if all arrears are cleared payments kept up to date.

Furthermore if I pay the €600.00 now (which I am) can I prevent the sale or will PTSB consider keeping my loan on their books.
 

PatrickJ

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Thanks Brendan for the work / help put into this thread; much appreciated.

Have I missed the boat or is there any chance at this late stage of renegotiating with the lender i.e. to keep the loan in their hands rather than Starts. It's funny as only two weeks ago I spoke with the lender about clearing off the arrears but there was never any mention of the loan being sold.
 

PatrickJ

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167
Did you pay the 600 yesterday? How much is the rent and how much are the monthly mortgage repayments.
Arrears have been paid and the loan is being paid in full P&I. The mortgage payments are €600.00 on a 1.1% tracker. Rental income €1300.00 pm
 

Bronte

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So you’ve more than double rent to mortgage yet you’ve not paid your mortgage. You’re clearly not managing the rental income correctly and directing the money elsewhere. Hope to goodness this doesn’t mean you’ve let tax on it slide as well. What is the value to loan amount. You should do the money makeover thread.
 

PatrickJ

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167
So you’ve more than double rent to mortgage yet you’ve not paid your mortgage. You’re clearly not managing the rental income correctly and directing the money elsewhere. Hope to goodness this doesn’t mean you’ve let tax on it slide as well. What is the value to loan amount. You should do the money makeover thread.
The reason for the arrears was a problematic tenant in the property who wasn't paying and who eventually left. The lender was informed that no tenant was in place however I continued paying full P&I each month.

No TAX issues however over a small sum of money I stand to lose a lot. My own stupidly . . .
 

PatrickJ

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167
Hi Jim,

In the case of a BTL with no arrears and no restructure in place can Start still look to appoint rent receivers and / or look to terminate a tracker rate?
 

Bronte

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The reason for the arrears was a problematic tenant in the property who wasn't paying and who eventually left. The lender was informed that no tenant was in place however I continued paying full P&I each month.

No TAX issues however over a small sum of money I stand to lose a lot. My own stupidly . . .
I do not see the relevence of you telling the bank you had no tenant in place. They couldn't care less. Do you not put money aside from the profit in rent to deal with vacant periods? If not you need to start doing so.
 

PatrickJ

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167
The bank insisted in knowing the reason for the arrears. Yes, money is now put aside to deal with the vacant periods. I have now pre-paid the mortgage in advance.
 

RedOnion

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Hi Brendan,

Yes, there was a history of arrears i.e. have failed to clear off the €600.00 after numerous promises.

I take full blame.

Will I loose my tracker with Start?
I missed the payment about 6mths ago.
Patrick,

Is there more to your story than you're disclosing?
Is this the same mortgage that PTSB said they were appointing a rent receiver on last December?

Are you saying you've never had mortgage restructured, or made any amendments to original contract, never had more than 1 missed repayment, and never entered into a PIA or defaulted on another loan with PTSB? And the single missed payment was recent?

It seems incredible that your loan was ever considered non performing in that case.
 

PatrickJ

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167
Hi RO,

No defaults on any other loans with PTSB.

The history of the loan is . . . In approx. 2013 I called the lender to make a repayment on my loan. I was asked by the person on the other end of the phone did I want to pay interest only on the loan for X amount of years as the loan was quite small. They said they would offer interest only option. I took them up on their offer.

Out of the blue the interest only period ceased and I returned to full payments which have been met since save for the famous missed payment of approx. €600.00. Yes, this was connected to the threat of the rent receiver in December.

The arrears are now paid and the loan is in surplus funds.
 

RedOnion

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In that case, it sounds like your loan was incorrectly flagged somewhere along the way. Maybe when it was changed to interest only in 2013 the agent flagged this was requested due to affordability.

There's no way a single missed payment would result in an account being treated as non performing by a bank, unless there were other factors.
 

blured

Registered User
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44
PatrickJ - you say the €600 payment was missed six months ago, but why were you threatened with a rent receiver in December before the missed payment took place?
 
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