Posts Tagged ‘Cerberus Capital Management’

How loan sales and vulture funds could result in thousands of people losing their homes

A financial advisory company that specializes in dealing with personal and professional insolvency is warning how a state bank’s decision to sell off troublesome and underperforming loans could result in thousands of people losing their home.

Bell and Company are keen to alert homeowners in the North that are likely to be affected by Permanent TSB’s decision to put under-performing mortgages up for sale as part of Project Glas.

Terry Bell, Bell & Company Principle, said: “This decision by Permanent TSB is going to have lasting and damaging effects for those who own properties in certain regions. We are currently working with a number of clients that we know will be put out by this decision.

“The bank is 75% owned by the state and is planning on selling a loan book worth €4 billion to vulture funds. It’s important to recognize though that in some circumstances, not all of the customers who are going to be affected by this are underpaying or are guilty of not engaging with the bank and their financial responsibilities.”

“Often in these kinds of circumstances, customers who have engaged with their bank and have established financial arrangements are still classed as “non-performing”, despite their clear intentions of paying off their loans.”

“This sale will undoubtedly “stoke the fire”, of the many homeowners and investors who have been able to avail of extremely low tracker-rate mortgages, and the lender will definitely come under pressure from the new owner.”

“We are now urging anyone that is concerned about the implications of this proposal to get in touch with us today and allow one of our specialized financial advisors to help you find the best possible outcome for your problems. We are experts when it comes to providing strategies for people keen to overcome property debt.”

Those facing these property problems should also be aware that attempting to negotiate with vulture funds can be hazardous, especially when it comes to restructuring mortgages.

Terry continues: “With figures revealing that the amount of mortgages in arrears held by private investment funds has risen and home possession is also rising, perhaps it is time for politicians and parties to stand up against the damaging effects that vulture funds can have on ordinary families.”

For more information about managing debt or to get a free financial review, call Bell & Company on 02895 217 373 or email [email protected].

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

At Bell & Company, we assist individuals whose original loans have been sold to a third party.

Vulture Funds

An initial reaction from Borrowers whose loans have been sold is that of trepidation.  This attitude is likely brought about by reading articles wherein these third parties being called “Vulture Funds”.  Some firms have outlined the likes of Cerberus and Lonestar as being vulture funds. 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. These cases 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.

Benefits for the Borrower

Considering this, the benefit for the Borrower is they are dealing with an entity that has the appetite to address the issue and 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 personal or business loan, sold to a third party and want professional independent debt advice.

Please call the office today on 0330 159 5820.

Bell & Company always offer a free initial consultation and we look forward to meeting you to outline all the options available.

PODCAST: Frustrated by the delays that are being caused by Cerberus’ current approach?

Welcome to the first edition of the Bell & Company podcast. Today we have HELEN MCCARRAGHER discussing Cerberus.

You may recall over the last month we have been placing a focus on Cerberus. In fact I took it upon myself to write a paper on the subject for my most recent MBA modules such is breadth of scope and detail regarding their acquisition of loan books both in Northern Ireland and Republic of Ireland (Sad man but true!)

Whilst there has been a lot of bad news regarding their acquisition of Project Eagle from NAMA, with particular scrutiny placed on their debt collection techniques and also a government fixers fee, Bell & Company from the outset have advised their clients to work with Cerberus. At the end of the day we can only work with what is in front of us and understanding their protocol, as we do, can achieve excellent results. This is vindicated with Cerberus advising a Stormont committee of significant write downs.

Details of Cerberus’ action to date:

 

 

Bell & Company have long believed there to be a real opportunity for our clients to work with Cerberus and extricate themselves from non-performing default loans. When with NAMA or the Ulster Bank negotiations often become stagnated but with Cerberus we have found there to be a real proactive approach working out what is best for all parties.

Should you or anyone you know had your loan sold to Cerberus then please contact Karen in the office today on 028 9521 7373 to arrange your free initial consultation.

James Bell – London Office Manager.

CERBERUS, CERBERUS …. WHAT ABOUT OTHER BANKS?

Before you continue reading this weeks blog why not check out our recent settlements by clicking the link below

https://www.bellcomp.co.uk/category/property-debt-settlement/

CERBERUS & LONE STAR PROJECTS IN UK & REPUBLIC OF IRELAND

***Cerberus Reminder***

With Cerberus being active in the EU and Ireland, Bell & Company can assist any debtor whose loans have been sold to Cerberus.