AIB Write Off A Third Of Family's Mortgage

Kenno90

Heard this on the new this morning,

AIB write off over 150k of mortgage debt for a family.

It's reported this morning that AIB has reached a deal with a family which will write-off more than a third of their mortgage debt and allow them to stay in their home.

According to the Irish Independent, 150 thousand euro was written-off as part of the agreement which is thought to be the biggest of its kind so far in Ireland.

Never thought they'd be willing to let that much go

dotsman

You can't squeeze blood from a stone!

If a customer is being up front & honest, engaging from the start, proactive & clearly willing to try everything to pay back as much as they can and there is no realistic hope of improvement, then the clearly unaffordable part of the loan should be written off. From what I understand, this is only the beginning and AIB (and hopefully the other banks) will be doing this for many customers over the next year.

On the other hand, customers who (and especially those who continue to):

• Ignore letters/phone calls
• Try to hide money/assets
• Are found to be lying about any aspect of their situation
• Are unhelpful/rude/obnoxious to staff
• Are unwilling to take responsibility
• Are unwilling to try their best to pay back as much as they can

neither deserve, nor will likely receive (you'd have to ask AIB!) such treatment. It's one of the most basic principles of insolvency/debt recovery.

Red Nissan

dotsman wrote: »

On the other hand, customers who (and especially those who continue to):

• Ignore letters/phone calls
• Try to hide money/assets
• Are found to be lying about any aspect of their situation
• Are unhelpful/rude/obnoxious to staff
• Are unwilling to take responsibility
• Are unwilling to try their best to pay back as much as they can

neither deserve, nor will likely receive (you'd have to ask AIB!) such treatment. It's one of the most basic principles of insolvency/debt recovery.

The above could have been written by an out of work and disgruntled debt collector, seemingly these strategies actually work, so the bank writing off a mere €150, 000 is still probably netting the bank TWICE what a collection agency would achieve.

oldyouth

They should have taken a stake in the property in the event of future rise in the value

chris85

oldyouth wrote: »

They should have taken a stake in the property in the event of future rise in the value

We dont know enough details on this but it is very possible the bank have agreed a clawback on the house value if they sell for profit down the line (could be 10 years down the line). We just dont know the full picture which would be helpful to know.

TrafficBug

I want mortgage write off, based on realistic current value of property versus original rip off value