CERBERUS STEPS UP ENFORCEMENT PROCEEDINGS AGAINST BORROWERS
In 2014, the terms “US Vulture Fund”, “US Private Equity Fund” came into the public eye when the Banks started selling their loans to companies like Cerberus, which allowed them to collect the debt in full from the individual.
Unfortunately, this does not look like it is going away any time soon as it was reported this week that Cerberus are increasing their enforcement proceedings against Buy to Let mortgage holders and Residential mortgage holders.
In part this is due to a Supreme Court ruling which has allowed the Vulture funds to begin legal action against the borrowers. Industry Sourcesbelieve that this situation is likely to get worse once the new Courtterm gets under way in the Autumn.
Over the past year or so, Ireland’s average household debt has fallen by 29%, so why are the vulture funds stepping up their enforcement proceedings, when the economy has improved so much? One theory is that they have run out of options with the assumption being if the borrower has not made a repayment proposal they likely never will. Secondly, it is said to be a great negotiating tactic as obtaining a high court judgement is one step away from Bankruptcy.
Although, reading in the news that household debt is very positive, receiving correspondence from your Bank saying that your loan has now been sold, can be a very serious matter. At GDP EQUITY EXPERTS we have helped many borrowers to resolve these matters and free them of this debt.
Act now before you get that knock on the door!
If you are reading this and can relate to it, or know someone who does, then please do not hesitate to contact us on 028 92 444 555.