Forbearance declined ?

teabee

Can anyone enlighten me as to what this means in relation to my mortgage , forbearance declined ?

Tayto2000

In relation to a mortgage, forebearance would refer to a lender deciding not to exercise legal rights against a delinquent borrower (eg foreclosure etc) usually in favour of a different payment plan.

You haven't given much info, but I'd guess the lender is refusing to defer or restructure here?

A2LUE42

If you have asked the bank to restructure the Mortgage due to temporary financial problems caused by unforeseen problems such as temporary unemployment or health problems, then they have declined to do this.

In what exact context did you receive this ?

teabee

Yes. Bought a house 2006 with partner who fled a month later , have tried tracking him down so has the bank since then. Over time lost my job don't qualify for mortgage interest relief because house in joint names. Have tried throughout to pay and now got a letter saying forbearance declined? So I have no clue as to what happens next, what I shd do etched. Have 2 children youngest aged two, and am on lone parents at the mo lost my job last yr. kids not related to earlier partner. I get 30€ a week maintenance and am at a loss

Grandpa Hassan

You must contact the bank ASAP. If they have declined forbearance they might ( and I stress 'might') be looking to repossess.

A bank is only going to grant forbearance if you can continue to meet the reduced payments. Or, if granting a payment break, they believe that your circumstances will improve such that you can resume payments at some stage. (Or of course if they feel you don't need it, which seems like its not the case here)

If they think there is just not enough there for you to make any reasonable payment then they might take alternative action. If that is the case you need to talk to them and make sure they are fully aware of your situation with respect to kids etc

They won't repossess and evict anyone in a vulnerable position without giving them time to make other arrangements. But you have to talk to them....

engineermike

Grandpa Hassan wrote: »

You must contact the bank ASAP. If they have declined forbearance they might ( and I stress 'might') be looking to repossess.

A bank is only going to grant forbearance if you can continue to meet the reduced payments. Or, if granting a payment break, they believe that your circumstances will improve such that you can resume payments at some stage. (Or of course if they feel you don't need it, which seems like its not the case here)

If they think there is just not enough there for you to make any reasonable payment then they might take alternative action. If that is the case you need to talk to them and make sure they are fully aware of your situation with respect to kids etc

They won't repossess and evict anyone in a vulnerable position without giving them time to make other arrangements. But you have to talk to them....

hi
I think grandpa has hit the nail on the head here. Your situation is key as is your ability to repay. The outside factors to be aware of Teebee are :-

1. Which lender, and their policy or willingness to engage with mortgagee's to work through a solution. There is plenty of discussion in the media about which banks are / and which are not.
2. The market, as we slowly come to the bottom of the 'trench' in the property market the bank can begin to put a quantum on the home (their asset) & the costs involved in repossession & consequential sale of the property.
3. The role out and implementation of the personal insolvency bill

http://www.citizensinformation.ie/en/money_and_tax/personal_finance/debt/personal_insolvency/personal_insolvency_options.html

- Engage with the citizens advice & MABS for solid advice that is pertinent to your current personal financial situation (and the situation with your partner). All of that is done in confidence.
But above all, keep the bank in the loop & be forthright with them & don't ignore letters, requests for meetings / & discussion with your lender.
mike f