Bank have lost loan documents

linola_c

Hi guys

Looking for a little guidance or similar experience.

A friend of mine defaulted on a mortgage some 8/9 years ago with a bank. They never heard a word about it until earlier this year, they discovered they had a lien over their house. From memory, They never offered their house as security for this loan.

They wrote to the bank and asked how much was owing etc and made an offer to try and resolve the matter which was refused. They then made a subject access request for all documents. The bank responsed stating they had misplaced the loan documents and only provided them with documents which related to earlier this year!!

They believe that the bank has taken out the lien on their house in error as they never offered it as security.

Does anyone know how long a bank is meant to retain loan documents? I can't see anything online but for money laundering legislation and some provisions of the consumer credit codes.

Savage93

get yourself a solicitor. for what if matters my opinion is if they cannot produce relevant documentation in court they are wasting their time and will get thrown out of court

Fol20

If you defaulted on a loan, they will come after other assets you own. Im open to correction but i think the lien can only be for a set period of time like 12years i think. I could be wrong about that.

homer911

If the bank has lost all documents, how do they know a lien exists? I can't imagine a lien exists without their solicitor knowing about it

GerardKeating

linola_c wrote: »

A friend of mine defaulted on a mortgage some 8/9 years ago with a bank. They never heard a word about it until earlier this year, they discovered they had a lien over their house. From memory, They never offered their house as security for this loan.

Perhaps I am wrong, but is not the definition of "mortgage" a loan secured against a property.

You describe the loan as a mortgage, so it must be secured against a property, and would this not mean they do have a lien against the house.

homer911 wrote: »

If the bank has lost all documents, how do they know a lien exists? I can't imagine a lien exists without their solicitor knowing about it

Would such a lien not be recorded in the land registry, against the property?

Dublin9

What is situation if banks have no documents on loan ?

Jim2007

Liz Connolly wrote: »

What is situation if banks have no documents on loan ?

You will still have to repay the loan if that is what you are asking... The general T&C still apply and they might have to take you to court at which point if you have a copy of the documents you would be required to deliver them up and if not the Judge might set the terms currently being applied.

Dublin9

thanks Jim for that... No documents ever signed or T&C issued. what about payment schedule and expiry date of loan that were agreed in person when loan was issued.

Trish56

It look like there is a lot of confusion here - your friend is not telling you the full story or perhaps you have misunderstood it.

If you get a mortgage on a home well then the lender will have the title deeds of that property until such time that the mortgage is redeemed. In order to get a mortgage your friend would have had to hire a Solicitor who would have the details of the mortgage and a copy of the loan offer etc. Your friend would also have received a copy of the loan offer.

Perhaps your friend got an unsecured loan and not a mortgage.

Jim2007

Liz Connolly wrote: »

thanks Jim for that... No documents ever signed or T&C issued. what about payment schedule and expiry date of loan that were agreed in person when loan was issued.

Well of all I was referring to the general T&C that everyone must agree to in order to open a bank account. That four or five pages of small tightly written text, the one no one bothers to read. It covers all kinds of situations way beyond the operation of your bank account.

But that aside, no bank is going to give you any kind of loan without a paper trail, a document might get lost but not everything. Furthermore nobody in the bank could agree anything like that verbally and the loan could not be setup on the system without the paperwork.

So whoever is telling you this nonsense is taking you for a mug!

soc

I think if your friend applies for Instrument on the property folio from Land Registry Office (€40), this may give them info on all applications completed and registered on the property. No harm in getting this anyway

mickdw

5 euro online to obtain a folio.