Loan Sale – What does this mean?

By on July 9th, 2018

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With the recent controversy surrounding Ulster Bank’s sale of 5,200 ‘non-performing’ home loans, the topic of loan sales comes to the fore.

People whose loans with the likes of AIB, First Trust and Ulster Bank have been sold would have been notified by letter that their loan had been bought by third parties such as:

  • Everyday Finance D.A.C
  • Cabot
  • Link Financial
  • Promontoria

An initial reaction from borrowers whose loans have been sold is quite rightly one of trepidation.  This attitude is likely brought about reading articles in which these third parties are called “Vulture Funds”.

From our perspective and with our vast experience dealing with third party loan purchasers, there is without question the opportunity to resolve defaulted debt accounts and any personal guarantee exposure. Bell & Company can help with this.

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 and settle.

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 likely be at a much-reduced price when compared to the outstanding loan balance, dependent of course on the Borrowers’ surrounding position.

Considering this, the benefit for the Borrower is they are dealing with an entity that has the appetite to address the issue. Essentially, a loan sale gives the borrower a chance to finalise a problematic loan default, Personal Guarantee debts, etc.

Your debt purchaser will be requesting proposals and Bell & Company have the experience with how to structure, present and negotiate any proposal tailored to your current circumstance. We work in this field on a daily basis and are changing both the lives of individuals as well as protecting businesses and their employees. 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 to outline all the options available.

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