More on pseudo-scientific-legalese from Kilkenny

Something that was a strong point of (supposed) fact in the meeting at Kilkenny was that mortgage loans now are not called ‘mortgage loans’ instead they are ‘lines of credit’.

It was also implied that the change of language was very important and meant something.

As a person working in this industry daily that caught me by surprise, thankfully, and unlike other attendees we have the resources to look into this.

See the pdf scan for yourself. The person who said this was telling the truth, at least in part, the ‘credit facility’ thing is mentioned, but elsewhere it’s all about ‘mortgage’ and ‘mortgage loan’, the entire concept is misguided.

If you click on the loan document (click the picture) you’ll see on the first page that it does mention ‘credit facility’ – albeit the scan I did was awful because I had to double black out personal …

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Talking with a strategic defaulter…

That strategic defaulters do or don’t is just a sideshow about quantifying their numbers, for several years we have been dealing with them on the advisory side of our company. Banks have large legal departments and teams chasing borrowers, and in turn the borrowers will from time to time hire their own professionals as a counterweight to the process, what you are about to read isn’t intended as justification, ethical reasoning or anything else, it’s just an insight into the thoughts of a strategic defaulter, why they did it and what has happened so far.

The person in question is a white collar professional and the director of a relatively well known company, she agreed to speak to us on the basis that we kept her identity private. She has a family home and six investment properties.

Karl: Did you make a concious decision to default on your loans? If so why?

Yes, because the bank were insisting I go on interest and capital repayments on the investment properties and the figures just wouldn’t add up so I chose to …

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Coleman at Large – with Fionn Davenport, Donal O’Donovan, Regina Breheny and Karl Deeter

The ‘Coleman at Large’ show featured Donal O’Donovan (formerly of the IMF), Regina Breheny (Irish Venture Capital Association) and Karl Deeter (of this parish) on a show about the Irish economy and the problems facing it as well as ways we should be dealing with our problems. Fionn Davenport sat in for Marc on the evening.

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The ‘Kilkenny Trust’ that makes mortgage debt disappear

There has been talk recently of a group based in Kilkenny who have a method for putting properties beyond the reach of banks. According to papers even Bill Cullen is part of it. Upon hearing about it and how it used a ‘trust’ structure to put property out of harms way we initially thought it referred to [glossary id=’6991′ slug=’unencumbered’ /] properties; but apparently it works for all properties including those for which there is a [glossary id=’6898′ slug=’mortgage’ /] secured against the home according to its promoters.

We were asked by a client to attend one of the presentations the group held, it was in Kilkenny in the back room of the Kilford Arms and was free of charge. The two people who talked at the meeting were a man named Noel Brophy and another named David Walsh, the first was a builder in the USA who returned home and had since gotten into disagreement with lenders, the other a man who was fighting banks but for whom …

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Davenport after Dark on Newstalk: Karl Deeter on mortgage repossessions 1st August 2013

We were asked to speak to Fionn Davenport & Kieran Cuddihy on Davenport After Dark about the changes in the Land Conveyance Law Reform Act 2013 which may result in more repossessions in the future, we agree with this view, the question is what [glossary id=’6898′ slug=’mortgage’ /] holders will be targeted first?

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Why paying off your credit card rather than your mortgage is stupid

It’s a common debate in debt that people prioritise in certain ways based on certain behaviours. A common one being that it is rational to pay off a credit card because that is what buys the shopping or puts fuel in the car.

The belief being that a credit card provides liquidity when needed, but in paying off this debtor first it brushes over two key facts.

1: If you told the credit card holder to go and jump for their money you’d be instantly better off by whatever you owed them, we regularly see settlements done for 10c on the Euro. This saving (assuming it equates to the missed mortgage payment – which is a leap of faith at best) could be used to fund the following month or two for fuel/groceries, and that isn’t to say you couldn’t repeat this process with a mortgage too as a source of financing if you had to, but doing it first is a mistake.

The first rule in personal finance is about prioritisation and while we regularly tell people to burn …

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Pat Kenny Show: Myles Duggan talks to Karl Deeter about mortgage defaults 31st July 2013

On the 31st of July we spoke to Myles Duggan who was covering for Pat Kenny (same day as Pat’s big announcement!) about mortgage defaults, compliance and changes to the ability of banks to repossess homes.

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2013 the year banks told borrowers to hand back the keys?

We help different people with different things, and while most of our debt problem clients face broadly similar reactions from the banks, we think it’s important to post the documents which show a presence of lashings and lashings of stupid. To see the full letter click on the image at the bottom of the post

One such document was received by a client recently from the Irish Civil Service building society, also known as ICS and a subsidiary of Bank of Ireland. It’s no secret that posting these documents makes us highly disliked by the banks,  but if people don’t expose them then the great farce will go unchallenged.

What makes this case interesting is that the bank offered a short term forbearance plan which the client asked them to tweak. Then they turned around and changed their mind and went from ‘we can give you a few months to get your affairs in order’ to ‘sell the house or even abandon it’.

In 2008 to now I have never heard a bank say that walking away (also called jingle …

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