AIB write down for surrendering tracker mortgage.

madlad2013

Hi

I have a mortgage of 265k with AIB and im on a tracker rate. I am in arrears of 7k. I am just wondering if I would be offered a write down if I wrote to AIB offering to surrender my tracker rate. If i was offered a decent write down I would be in a position to sell my house and clear all/most of the mortgage.

Can anybody tell me if AIB are currently offering write downs for voluntary surrender of a tracker mortgage?

murphaph

I believe deals are being done but I believe when anyone gets one they are sworn to secrecy contractually and so you won't hear lots of "I got a deal" stories on the internet.

madlad2013

You you have any idea what percentages the bank are offering?

gabbytheking

Deals definitely being done if you can prove that you are distressed especially BOSI. But one further thing you should note that you should know the value of your tracker before proposing anything to them. Get a good valuation any bankers you know. You offer them something below their future cost say 80% ie if the tracker is costing them 80k offer them a write-down of say 64, say 65 for convenience. Alot depends on the rate above ECB etc. Another wise move would be if you could get an institution to agree to give you a mortgage say 200k and go to the AIB with an immediate buyout proposal. Do your projected income and expenses and show them what you can afford. Truthfully aim for the mortgage that you want i.e. the 200k etc not too low mind but showing that your distressed without a write-down. A valuation might also help show that your in serious negative equity. Not necessary a professional one i.e. If its an estate house try to get local valuations from sales in the estate in a professional manner without going to great expense of a professional valuation. The banks have been summoned to listen to thought out reasonable proposals so make sure the proposal is thought out, as accurate and detailed as possible and most of all a good deal for both parties. Then esquire with your bank manager who's the best person to talk to with regard to distressed mortgages and tracker write downs in letter format quoting your account number etc so its on record and they are required to reply. Try it and let me know how you get on. 2-3 days hard work might get you a writedown in the region of 60k worth a try says I!!!

Have a look at this also one or 2 informed people herehttp://www.askaboutmoney.com/showthread.php?t=178627

gabbytheking

An outline from a reputable website for you madlad "Indeed, Michael Dowling of the IMAF, outlined just how valuable they were recently when he pointed out that a 25 year tracker mortgage of €250,000 would require a mortgage write-down of €97,462 to make it worth while giving it up for a standard variable rate."

See my home site for more details http://blogs.myhome.ie/2013/05/03/tracker-mortgages-are-now-so-valuable-they-may-be-affecting-the-market/

madlad2013

Thanks for the information gabbytheking. The option of trying another institution for a mortgage is totally out of the question as I am currently unemployed and have arrears of 7k on my existing mortgage. The other thing is that my house is currently valued for approximately the outstanding balance on the mortgage but having said this I have spent over 100k from savings I had on totally renovating the house two years ago. In reality the house has cost me 440k but is now only valued at approximately the outstanding balance of the mortgage.

My main worry is that AIB wont deal with me (offer me a write down) because of the current arrears and my unemployment.

In your opinion should I write directly to my local bank manager or should I write directly to the mortgage centre in Dublin.

I would really appreciate your advise. Many thanks.

Kristopherus

I'd be very slow to give up my tracker. I'd wait for the bank to come to me with an offer & then screw them as much as possible to get a big enough offer that suits my purposes and not the bank's. With a Tracker you have a hand of aces. The banks know that and should come with a serious offer initially.

downonthefarm

i don't know what a tracker mortgage is...

madlad2013

Hi Kristopherus

My problem is the arrears. I don't want to wait too long as if they decide to repossess im in serious trouble. If I got a write down I would sell immediately and clear the mortgage and move back in with my parents until I find my feet again.

Kristopherus

madlad2013 wrote: »

Hi Kristopherus

My problem is the arrears. I don't want to wait too long as if they decide to repossess im in serious trouble. If I got a write down I would sell immediately and clear the mortgage and move back in with my parents until I find my feet again.

I feel your pain. How do you get on with your local bank? It may be of help to have an informal chat about your query. Just be aware that local offices of the main banks have sfa autonomy in mortgage arrears matters.Everything is now referred to a central office, where you never get to talk to any of the minions there. But they should be able to give you an indication of the bank's attitude to doing deals.

You could also approach your local MABS office. They may be able to draw up a strategy for you.

gabbytheking

I think you may want to keep the house possibly. In those circumstances the first thing you should ask for if not a writedown is a interest only amount for the time being if not already attained. You may be getting some interest supplement(if not see below) and at least the arrears won't get to the stage where their thinking of repossession and put it all in writing keeping copies. Send in your projections at this stage too with your little income and your expenses Heres the welfare if you don't have it http://www.citizensinformation.ie/en/social_welfare/social_welfare_payments/supplementary_welfare_schemes/mortgage_interest_supplement.html

Second thing then is to put a proposal together and then contact either/both your manager with a copy sent to the mortgage center. The bank manager may be able to put you onto somebody if not the mortgage center may help and give you a consultation. Easier said than done but if you get a job and can show a genuine ability to pay the wrotedown amount it may well help. There's not much point if writing down the debt if even at the wrotedown amount the debt won't be sustainable. Discuss all these things if you can get a consultation. Keep contacting them and get your case heard keeping copies and logs of calls at all times(this will help if repossession proceedings are enacted) always be strong but fair never aggressive as this won't look good..

If you had a valuation that would show negative equity you could argue your case(use your imagination on this one) for a writedown to sell. Getting the writedown without negative equity would probably be alot tougher. In your current situation they may well hope you sell and repay in full or at least the majority not about 90k less. Any writedown i've seen has always come in a negative equity situation where lower payments under a writedown were possible. Or the latter where a restructure came from another bank to buy out the loan at a lower rate.

Its hard but start with the interest only and go from there. Get a feeling for the bankers and try sus them out by calling pretty regularly once you've a contact. Keep searching for the job if possible and paying the interest element or the majority. There only people like you or I they have feelings and are more likely to move on something if the 1. Have a personal relationship and 2. Are being bothered to get going

gabbytheking

Plus if you need help as per the above poster contact MABS and the Free legal advice bureau. Also have a good read of this these are the guidelines the government has drawn up for the banks to listen to so try to hit these points. http://www.flac.ie/download/pdf/guidelines_on_mortgage_arrears_for_website_jan2010__final.pdf

It has changed since but its still a very good guideline.

One other item http://www.independent.ie/business/personal-finance/calculate-how-much-a-mortgage-is-worth-29210696.html

khards

madlad2013 wrote: »

Hi

I have a mortgage of 265k with AIB and im on a tracker rate. I am in arrears of 7k. I am just wondering if I would be offered a write down if I wrote to AIB offering to surrender my tracker rate. If i was offered a decent write down I would be in a position to sell my house and clear all/most of the mortgage.

Can anybody tell me if AIB are currently offering write downs for voluntary surrender of a tracker mortgage?

Are the arrears currently building or have you had these arrears for sometime?
Can you afford to pay back a mortgage of 265k, or more like €500k with interest between now and retirement?

Marcusm

I can't see you having much luck; as you build up arrears, you will be in breach of the loan and eventually the bank could seek either to repossess or deny the continuing tracker - the docs will allow then to call the loan at some point for non performance. If, as you say, the house is worth as much as the outstanding mortgage, I doubt they would allow you to walk away with the equity you put in (which is now lost). They would recover 100% simply by enforcing the terms of the loan. Harsh but unfortunately that's how the system works - you wouldn't have given them any profit if it sold for more.