Dealing with mortgage arrears

Argenvino

I'm interested to hear others experiences with the banks, in particular AIB in relation to dealing with mortgage arrears.

We have fallen behind and I have kept in touch with the bank and done everything that can be done in relation to cost cutting. I had my numbers done thoroughly and I approached them about effectively consolidating a couple of other loans that we had which would have reduced our monthly outgoings by around €500 per month, which would allow us to continue with full repayments. We applied to have the arrears (4months) put to the end of the mortgage. They refused to help with the personal loan and have basically said the only option we have is to sell. I feel they have only given this option as we have equity in the house, something I know many in our position and worse do not have.

I feel they are completely abusing their power. I am not looking to get out of paying the debts, just for a little help to make sure everyone gets paid.

I am interested to hear others stories and any routes they have taken or any other advice!

Thanks for listening to my rant!

chris85

Argenvino wrote: »

I'm interested to hear others experiences with the banks, in particular AIB in relation to dealing with mortgage arrears.

We have fallen behind and I have kept in touch with the bank and done everything that can be done in relation to cost cutting. I had my numbers done thoroughly and I approached them about effectively consolidating a couple of other loans that we had which would have reduced our monthly outgoings by around €500 per month, which would allow us to continue with full repayments. We applied to have the arrears (4months) put to the end of the mortgage. They refused to help with the personal loan and have basically said the only option we have is to sell. I feel they have only given this option as we have equity in the house, something I know many in our position and worse do not have.

I feel they are completely abusing their power. I am not looking to get out of paying the debts, just for a little help to make sure everyone gets paid.

I am interested to hear others stories and any routes they have taken or any other advice!

Thanks for listening to my rant!

I can see where you are coming from but expecting the mortgage lender to take on further debt doesnt make sense either. They possibly have negative equity on the loan at the moment and you wish them to make the equity worse on this. This wont be a runner for mortgage lender at all.

I would imagine the lender would talk about restructuring to have the arrears recapitilised, without taking on the personal loans.

How many months arrears are we talking?

cookie1977

Have a look at keepingyourhome.ie

Normally you enter the MARP process and the bank will offer you a proposed solution base on your current financial status and arrears etc... If you do not feel the solution is suitable you appeal internally to the bank first who must reply with a decision within 40 business days. If you still disagree with their conclusion you can appeal to the Financial Services Ombudsman.

More info here:
http://www.citizensinformation.ie/en/housing/owning_a_home/mortgage_arrears/mortgage_arrears_resolution_process.html

chris85

cookie1977 wrote: »

Have a look at keepingyourhome.ie

Normally you enter the MARP process and the bank will offer you a proposed solution base on your current financial status and arrears etc... If you do not feel the solution is suitable you appeal internally to the bank first who must reply with a decision within 40 business days. If you still disagree with their conclusion you can appeal to the Financial Services Ombudsman.

More info here:
http://www.citizensinformation.ie/en/housing/owning_a_home/mortgage_arrears/mortgage_arrears_resolution_process.html

Good info there for OP, but I feel unrealistic for the OP to be considering having the bank take on the personal debt.

cookie1977

The problem here is there's no real transparency in the process. Customers in arrears trying to sort out their problem have to wait a long time for appeals processes to work and still at the end the bank has the final say.

Are your loans with the same company as your mortgage? You could also look to speak with MABS (who are very busy). Solely based on your description your situation does not appear to be critical enough to need to sell the property so the bank might be just trying to pull a "fast one". FLAC might also help or if you can afford your own legal advice that might be quicker. If you're under the MARP process the bank cannot force you to sell and in order to repossess they have to wait 12 months from the date your arrears were classified as a MARP case (31 days after the first missed repayment) before applying to the courts

st1979

Surely you should stop paying your "unsecured" personal loans and stop with this nonsence talk of selling your home. You will get a bad credit history for a few years and if you may have a judgement against you. But selling your home is the last step not the first.

chris85

st1979 wrote: »

Surely you should stop paying your "unsecured" personal loans and stop with this nonsence talk of selling your home. You will get a bad credit history for a few years and if you may have a judgement against you. But selling your home is the last step not the first.

Bad advice with so little info. Depending on the size of the personal loans it wont stop at a judgment and they can quite easily be changed from unsecured to secured by means of a judgment mortgage. Agree mortgage should come first though.

cookie1977

There was mention of a new scheme this week which might help:

http://www.irishtimes.com/news/consumer/three-month-pilot-scheme-to-provide-relief-for-debt-arrears-1.1386725

Might be worth contacting the companies you have the personal loans with to see if a deal can be done.

st1979

chris85 wrote: »

Bad advice with so little info. Depending on the size of the personal loans it wont stop at a judgment and they can quite easily be changed from unsecured to secured by means of a judgment mortgage. Agree mortgage should come first though.

Chances are he has a long term mortgage. Yes the unsecured creditor can get a judgement on the home. But very few judges will force eviction in fact i would be amazed if any have. Talking to my solicitor about it and he reckoned a judgement would only be an issue if the house was put up for sale in the next 12yrs. And at that stage you negotiate the judgement.
Now tell your mortgage provider your home is not for sale. And try to deal with your personal loans first as in do a deal with them that cuts your payments. So you can pay your mortgage

chris85

st1979 wrote: »

Chances are he has a long term mortgage. Yes the unsecured creditor can get a judgement on the home. But very few judges will force eviction in fact i would be amazed if any have. Talking to my solicitor about it and he reckoned a judgement would only be an issue if the house was put up for sale in the next 12yrs. And at that stage you negotiate the judgement.
Now tell your mortgage provider your home is not for sale. And try to deal with your personal loans first as in do a deal with them that cuts your payments. So you can pay your mortgage

There are other ways to enforce the judgment besides securing it as well. Its poor advice based on the little info we have.