My Loan Has Been Sold to A Third Party – What does this mean for me?

By on August 4th, 2016


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At Bell & Company, we assist individuals whose original loans have been sold to a third party. Some may remember that, recently in Northern Ireland, we were asked to attend with a joint committee at Stormont to outline how Cerberus were liaising and reviewing cases of loans they purchased from Ulster Bank.

You can revisit some articles/blogs regarding this via this link…

An initial reaction from Borrowers whose loans have been sold is that of trepidation.  This attitude is likely bought about reading articles wherein which these third parties being called “Vulture Funds” and, indeed, some firms have outlined the likes of Cerberus and Lonestar as being vulture funds. From our perspective and vast experience dealing with third party loan purchasers, there is without question the opportunity to resolve defaulted debt accounts and Personal Guarantees.

Many clients, that we are currently assisting in this field, have seen that a loan sale has given them the opportunity to address the issue. The case with many lenders, who sold loan books, is they were previously inundated with cases which required resolving without having the personnel or resources to resolve the matter. Conversely, a loan purchaser will be looking for a quicker turnaround and a return on their initial purchase which will be a significantly reduced price when compared to the outstanding loan balance, dependent of course on the Borrowers’ surrounding position.

In light of this, the benefit for the Borrower is they are dealing with an entity that has the appetite to address the issue and also are looking for a return which is significantly less than the overall liability. Essentially, a loan sale gives the borrower a chance to finalise a problematic loan default, Personal Guarantee or debt.

Your third party will be requesting proposals and Bell & Company have the experience on how to structure, present and negotiate any proposal tailored to your current circumstance. Our Corporate department work in this field daily and are changing both the lives of individuals as well as business prosperity. Many successful businesses have been subject to defaulted debt and once resolved the fabric of a successful business can remain.

If you or anyone you know has a loan, whether it be a mortgage or business loan, sold to a third party and want professional independent debt advice then please call the office today on 02895 217373. Bell & Company always offer a free initial consultation and we look forward to meeting you to outline all of the options available.