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Paul Kerr Loan arrears and the benefit of early and appropriate engagement with banks

Paul Kerr Loan arrears and the benefit of early and appropriate engagement with banks. WHO AM I ? . 12 th Floor, Riverpoint , Lower Mallow Street Limerick. Loan arrears – First Steps . Developing and implementing an action plan. Knowing your rights. Identifying possible solutions.

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Paul Kerr Loan arrears and the benefit of early and appropriate engagement with banks

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  1. Paul Kerr Loan arrears and the benefit of early and appropriate engagement with banks

  2. WHO AM I ? 12th Floor, Riverpoint, Lower Mallow Street Limerick

  3. Loan arrears – First Steps Developing and implementing an action plan Knowing your rights Identifying possible solutions Understanding the issues Clarifying the liability 12th Floor, Riverpoint, Lower Mallow Street Limerick

  4. The process • Documentation review • Loan agreements • Bank letters • 2. Strategic review • Secured assets & other assets • Devising an acceptable plan • (short / medium / long term) • Implementation • Engagement with the Bank • Output / result • Managing expectations for all parties • Negotiation • Achieving realistic outcomes 12th Floor, Riverpoint, Lower Mallow Street Limerick

  5. The rules of engagement • Consumer credit act • Consumer protection code • Code of conduct on mortgage arrears • Complaints procedure • Financial services ombudsman • The Credit Review office • Data Protection policy • Legal 12th Floor, Riverpoint, Lower Mallow Street Limerick

  6. Our role as 3rd party intermediary • Validate and prepare ‘evidence backed’ proposals • Make the bankers job easier • Formulate a plan that is a ‘win win’ for both the client and the Bank • Avoid legal action and/or insolvency as a solution 12th Floor, Riverpoint, Lower Mallow Street Limerick

  7. Case study 1 • Bank A commercial loan € 500,000 • Bank A security € 250,000 • € 250,000 • Bank B tracker (25yr) €1,000,000 • Bank B security € 500,000 • € 500,000 • Issues: • 2 * negative equity loans • Negative net worth • Tracker 5 years expiry / review date • Outcome = Bank A asset disposal & settlement; Bank B negotiations lead to long term interest only tracker 12th Floor, Riverpoint, Lower Mallow Street Limerick

  8. Case study 2 • Bank commercial loan € 500,000 • Bank investment loan € 250,000 • Bank security € 250,000 • € 500,000 • Issues: • Business failed /assets significantly depreciated • Negative net worth and nearing retirement age • Had another property unencumbered • Outcome = Agreed asset disposal plan; Security swap with the • bank (flawed security); debt set aside (eventual write off) and • settlement 12th Floor, Riverpoint, Lower Mallow Street Limerick

  9. Case study 3 • Multi banked investment property portfolio • Issues: • Falling rents, excessive capital loan repayments • Each bank not trusting that they are seeing the true picture • Completed a full review and did a strategic plan which provided accurate, clear information to all banks • Outcome = Negotiated interest rate reductions; capital • deferments and an action plan for short term forbearance with all • banks 12th Floor, Riverpoint, Lower Mallow Street Limerick

  10. Case study 4 • Bank Land development partnership gone wrong • Issues: • Bank lent 100% funding for site for Health Care Project • Joint & Several Partnership secured planning - bank would not follow their money • Bank debt €3m / site value now €250k (-€2.75m) • Outcome: • Produced evidence backed report to determine a plan which involved the asset disposal and a split of the debt • Partners J&S liability ring-fenced from €2.75m to €150k each, repayable over 7 years (the maximum they could pay) • At end of year 7 the residual debt will be written off 12th Floor, Riverpoint, Lower Mallow Street Limerick

  11. Outline of fees and charges • Hourly rate €150 per hour plus VAT • A typical documentation review, strategy paper and bank proposal takes 8 – 10 hours • Success fee also normally 2.5% of any write-off achieved • If negotiating interest rate / tracker reversals success fee is 15% of any refund secured • All fees agreed up front and fully detailed within our terms of business 12th Floor, Riverpoint, Lower Mallow Street Limerick

  12. First Choice Contact Details Paul Kerr First Choice Financial Services Ltd 12th Floor Riverpoint Building, Lower Mallow Street Limerick Ph. 061 317260 Fax. 061 317263 email – paul@firstchoiceltd.ie Web www.firstchoiceltd.ie 12th Floor, Riverpoint, Lower Mallow Street Limerick

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