The Video Transcription:

This case involved a principal private residence which was under structural renovation. The principals were living in their parents home while the structural renovations were being carried out. The substantial works have been primarily completed – just some decoration works outside, etc. However, the principals have run into financial difficulties and had placed the property on the market.

The bank had obtained a possession order in the Circuit Court. The bank solicitors had notified the sheriff, however, the sheriff had not completed the formalities of possession. The bank then sold the mortgage debt to a venture fund, sometimes called a vulture fund but I find them very fair to deal with. And a third party who had lived on the street when they were younger had approached the auctioneer interested in making a genuine, good offer for the property.

Parties then approached the financial surgeon to see if anything could be achieved for everybody out of this process. The mortgage debt was 815,000. Third party offer was 515,000. Venture funds have their own way of checking whether this is reasonable or not and they were happy with same. That left a deficit of 300,000 and the financial surgeon proposed to the venture fund 0%, nada, nothing from the principals other than co-operation which the financial surgeon would guarantee would be forthcoming from the principals to ensure an early sale and an early closing of the property.

The third party and the auctioneer were unsure whether the whole process would have to go through, whereby the house would have to be possessed by the sheriff, that the venture fund would have to appoint a receiver who would then appoint an auctioneer who would then sell it – a delayed process. But this was all avoided with everybody’s co-operation. It saved the venture fund legal fees, receiver’s fees, etc. and the sale and monies close quickly.

The clients were happy because this deficit, which would have been hanging over them, was clear and they would not have to worry about that again. And, in fact, they made 5,000 pounds by having reduced fees to auctioneers, etc., as a result of this process.


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David Murray

David Murray

David is a fully and Highly Qualified Financial Accountant with an unblemished record for almost 30 years.

David has an extensive Academic Record including, inter alia – Gold Medal College of Commerce – First Place Chartered Accountancy (ROI) – Fastest Graduate to Qualify.

David has written many articles on International Trade Finance in Magazines and Sunday Business Newspapers. In addition, has been Late Late TV Show Tested on cases referred by them.

David has extensive Business Experience particularly in Property, Construction, Manufacturing, Equipment, Telecom, Service Companies, SME Sectors in Ireland, UK, Dubai, Poland, etc., Agent in Ireland Bank of Iran, Plc Bank Seminars “Finance for Builders”, etc., etc.

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