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Voluntary Surrender and residual balance

  • 13-08-2018 8:02pm
    #1
    Tamarellaz
    Registered Users Posts: 35 ✭


    Hi, I was left with an unsustainable mortgage in 2010. I subsequently ended up surrendering the property which was sold.

    I’ve been through the ISI but heard nothing for the last 2 years. Now bank of Ireland are chasing me for over €300,000.

    Can they sell this debt to a vulture fund? If they can (or have done already) how can I find out?


Comments

  • #2
    GerardKeating
    Registered Users, Registered Users 2 Posts: 7,686 ✭✭✭GerardKeating


    Tamarellaz wrote: »
    Hi, I was left with an unsustainable mortgage in 2010. I subsequently ended up surrendering the property which was sold.

    I’ve been through the ISI but heard nothing for the last 2 years. Now bank of Ireland are chasing me for over €300,000.

    Can they sell this debt to a vulture fund? If they can (or have done already) how can I find out?

    If it was sold, they would have to tell you.

    Get processional advice, start with MABS.


  • #3
    hanaimai
    Registered Users Posts: 207 ✭✭hanaimai


    Tamarellaz wrote: »
    Hi, I was left with an unsustainable mortgage in 2010. I subsequently ended up surrendering the property which was sold.

    I’ve been through the ISI but heard nothing for the last 2 years. Now bank of Ireland are chasing me for over €300,000.

    Can they sell this debt to a vulture fund? If they can (or have done already) how can I find out?

    I assume this 300,000 was the remaining balance on the account after the house was sold? Yes, they can sell it. If they already have done, you would have received a letter from Bank of Ireland stating this.

    Selling the mortgage to a vulture fund doesn't mean you no longer have to pay the debt though. Did you get any resolution from going through the insolvency process? If not you should get back on to the ISI/engage with your PIP etc. Going to MABS is another good starting point, as advised above.


  • #4
    skipper57
    Registered Users Posts: 8 ✭skipper57


    The default situation would be that the borrower would always be liable for the residue of the loan after the sale of the property. Check your records/correspondence to see if there was any agreement to write off any of the loan balance post sale. It would be normal for the bank to recalculate your repayments based on your new reduced loan balance post property sale and debit the lower repayment amount from your bank account.
    As previous posters suggest, revert to the ISI and your PIP to ascertain exactly what was agreed by the PIP on your behalf, you should have been given a copy of the agreement for your own records as you would have had to sign the bank copy.


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