Loan Sold To Vulture Fund

done_deal

I’m hoping someone can give me a bit of advise. I had a loan with First Trust for a couple of rental properties & they have now sold the loan to a vulture fund. I have never defaulted but I had the loan at a very low rate & obviously that’s why it was sold. I have been asked by the fund to make them an offer. If I’m unable to refinance the properties,does anyone know what steps they can take to recover the debt bearing in mind I have never defaulted in either the original loan with the bank or with them since the took the loan over a few months ago? Thanks in advance

[Deleted User]

If you don't want to settle the outstanding balance for a discount, you can continue making payments under the same terms.

done_deal

If we can!!!8217;t agree on a settlement figure, can they increase the interest rate or does it stay at the same rate we were paying to the bank? Also, anyone any idea of the percentage discount we should ask for?

motorguy

done_deal wrote: »

If we can!!!8217;t agree on a settlement figure, can they increase the interest rate or does it stay at the same rate we were paying to the bank? Also, anyone any idea of the percentage discount we should ask for?

With respect, you should repost this on the Debt Free Wannabe board or Loans board as its not an NI specific issue and you'll get a lot more viewers / responses from other knowledgeable people

donglemouse

assuming you haven't breached any of the terms and conditions in the loan agreement, you can continue to make repayments as due for the remainder of the term in your loan agreement

in terms of a settlement it's entirely at their discretion if they would offer you any discount - the amount of a discount if offered would likely be influenced by how long your term has left and what interest rate you are currently paying

joefizz

donglemouse wrote: »

assuming you haven't breached any of the terms and conditions in the loan agreement, you can continue to make repayments as due for the remainder of the term in your loan agreement

in terms of a settlement it's entirely at their discretion if they would offer you any discount - the amount of a discount if offered would likely be influenced by how long your term has left and what interest rate you are currently paying

The OP might be better off getting legal advice as the above may not apply to BTL mortgages which in real terms should be classified as commercial.
Certainly with the new tax/energy/registration changes this year the lender may have judged this as a change of circumstances/affordability with the mortgages and if they are in negative equity they might want their money back (been quite a few cases of this down south). If its the latter then they can eventually repo. Again consumer law may not apply as its BTL.



Best getting advice from an accountant/solictor/both as all the BTL changes recently some lenders are clamping down/withdrawing products leading to the OPs position.

donglemouse

for avoidance of doubt my post was not intended as legal advice or to be relied upon by anyone and neither is this post

however the general principle i quoted is correct if you haven't breached any terms and conditions of your loan agreement, the fact one lender sells it to another doesn't matter the new lender can only take action if the borrower has breached a term and condition

as you correctly note they may judge it a breach if the loan stated the property say could only be used as your personal residence and you have been doing something else with it

terms and conditions usually cover more things than just making the necessary repayments