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What does loan redeemed mean?

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  • 24-06-2013 3:01pm
    #1
    Lantus
    Registered Users Posts: 3,027 ✭✭✭


    We are an owners management company who was making enquires into a property that we believed had been repossesed as it had been abandoned for several years. The lender who we made contact with has gotten back to us and has said this: -

    1/ The loan has been redeemed, and
    2/ The loan has been closed and they have no further interest in the property.

    As we understand this loan had not been serviced in 2+ years prior to now.


    What does this mean? Does the current owner now have a free property? Was the mortgage essentially cancelled? Why has the bank not recovered the property to make some money back? Or, has the owner by some miracle stumped up some money to pay off the entire loan????

    I'd appreciate some insight into 'bank speak'


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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Lantus wrote: »
    We are an owners management company who was making enquires into a property that we believed had been repossesed as it had been abandoned for several years. The lender who we made contact with has gotten back to us and has said this: -

    1/ The loan has been redeemed, and
    2/ The loan has been closed and they have no further interest in the property.

    As we understand this loan had not been serviced in 2+ years prior to now.


    What does this mean? Does the current owner now have a free property? Was the mortgage essentially cancelled? Why has the bank not recovered the property to make some money back? Or, has the owner by some miracle stumped up some money to pay off the entire loan????

    I'd appreciate some insight into 'bank speak'

    Why do you think the loan has not been serviced in over 2 years, the bank have told you the loan has been cleared, why would you doubt that.

    Why do you think its a miracle the owner has had the money to clear off the entire loan. That's not unusual not would it be a miracle.


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    #3
    Marcusm
    Registered Users Posts: 10,325 ✭✭✭✭Marcusm


    As most loans are paid off in accordance with their terms, this is generally what it would mean, i.e. the bank was repaid it's money. That could have been financed from a further loan, however. Have you done a Land Registry search? I have no idea how you could have obtained private information concerning the payments on the loan, however. If that loan has been repaid but the mortgage charge not yet released, the best thing an OMC could do would be to obtain judgement and seek a judgement mortgage. Mortgage charges have to be settled in priority order and if any replacement loan has not been registered as a charge (perhaps inefficiency from a solicitor), you may be able to jump the queue so to speak.


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    #4
    Lantus
    Registered Users Posts: 3,027 ✭✭✭Lantus


    Just a thought but if the owner had passed away or sufferred injury (I hope not neither do I wish it) then the loan would be paid off?

    How is this handled in a conveyancing issue? Would it happen like a normal sale in that the sellers estate/solicitor would need to contact the Management company prior to any hand over? I imagine that the life insurance could proceed this in paying off the mortgage.


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