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Mortgage Sold by NIB Not being very helpful

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  • 21-10-2014 3:45am
    #1
    pedro7
    Registered Users Posts: 132 ✭✭


    I'm not sure if this is in the right section so I apologize if I'm in the wrong place.

    Recently my family businesses mortgage was sold by IBRC to a very recently formed property finance company (not sure if I can/should name it). We have been struggling with debt since the recession, but we have restructured and we are paying off creditors quickly now. We are and have always serviced our mortgage and have never been in default of our obligations there. There's about 3 maybe 4 years of repayments left. Circa 60k. Not huge money.

    Since the sale of the loan, we got a letter to inform us that we have 12months to clear the loan or they will force the sale of our premises (been in the family generations). Following legal advice, we have pointed out that we are paying the loan and have not breached our original terms of loan so this is unreasonable.
    We heard nothing for another few months and then received a letter to inform us the interest rate was being doubles due to penalties because we were in default of the loan. We have never been. We wrote back to this letter explaining as much and asked the company to clarify exactly when and how we have defaulted.
    That was 3 months ago and we have not heard from them. The extra interest was due to be applied from today. This additional interest will force us into default.

    Is there anything we can do about this situation? We are at a loss what to do here. If we force it to court we cant afford the legal costs of fighting them. if we go along with what they say they are going to sell our business in about 6 months when we have been forced through huge interest hikes to default. If we go to court we'll we cant afford to go there.

    I'm sorry this is so long but I'm lost as to where to go. It seems there are companies buying loans from IBRC with the sole intention on cashing in on assets as soon as possible. With no regard for the hard work and people behind them.

    Surely this cannot be legal? Are there others in this situation?


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    #2
    NSAman
    Registered Users Posts: 3,429 ✭✭✭NSAman


    Sorry to hear this Pedro, but alas it seems to be a pack of loan sharks. If the original mortgage is still in force, then as far as I am aware they do not have a leg to stand on.

    Obviously, your solicitor is the main point of contact. If you are seriously stressed and sure that you are not in default, I would consider contacting the financial ombudsman. Not sure if this will help but at least it is a port of call. As far as I know, they cannot just double a rate. This has to be agreed prior with the financial regulator.

    I know how stressful this can be, just hang in there and fight, these a**holes need to be strung up and sued for causing such intimidation.


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    #3
    pedro7
    Registered Users Posts: 132 ✭✭pedro7


    I think you've got it bang on. Loan sharks out for a quick buck. I guess we'll find out soon enough whats happening with the interest. But the solicitor recons they haven't a leg to stand on either. Fingers crossed.

    The ombudsman was my next port of call alright.

    Thanks for taking the time to read all that. I just needed to vent really.


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    #4
    okiss
    Registered Users Posts: 698 ✭✭✭okiss


    Hi Pedro7
    From what you have told us the company that have taken over the loan book don't have a leg to stand on. The reality is that you have not missed any payments as per your agreement.
    I would contact the financial ombudsman by phone and ask there advice. I would also send them a registered letter stating further to my conversation on x date at x time with y person can you confirm z by writing to me at my business address of ///.

    In regards to dealing with this company who the loan was sold on to - do everything in writing and send them registered letters.
    If this company are regulated by the central bank in Ireland I would contact the central bank in regards to what they are doing or I would write to the agency who they are regulated by as they may be braking some regulations they should follow. Look at what happened to wonga in the uk.
    In fact I would contact the media news programs about this as I am sure they would be in a position to contact someone high up & ask them why they are suddenly doubling there interest rates on loans that are being paid on time and as per agreement.
    At this stage the media and a lot of people out there are sick of how these companies are behaving.
    Good luck.


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