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Loan to pay tax arrears

  • 30-05-2014 12:07pm
    #1
    jcon1913
    Registered Users, Registered Users 2 Posts: 803 ✭✭✭


    Do any boardies know of banks or anyone else that will loan to a person with tax debt i.e. unpaid taxes.

    We have a house worth 650,000 the mortgage is 280,000, we have income of 100,000 per year but our lender ( EBS ) says they don't lend for tax arrears.

    Revenue are chasing for their debt ( quite right ) but they are looking for money immediately ( not unreasonably ) so to get out of a jam I need a loan to keep the show on the road.

    Any ideas?


Comments

  • #2
    dobsdave
    Closed Accounts Posts: 1,814 ✭✭✭dobsdave


    jcon1913 wrote: »
    Do any boardies know of banks or anyone else that will loan to a person with tax debt i.e. unpaid taxes.

    We have a house worth 650,000 the mortgage is 280,000, we have income of 100,000 per year but our lender ( EBS ) says they don't lend for tax arrears.

    Revenue are chasing for their debt ( quite right ) but they are looking for money immediately ( not unreasonably ) so to get out of a jam I need a loan to keep the show on the road.

    Any ideas?

    I was in the same position a few years ago. Told them I would pay them off over the year, which was fine.
    Think you can ask for it to taken from your tax credits over a period also.
    Obviously it depends on the scale of the debt.


  • #3
    jcon1913
    Registered Users, Registered Users 2 Posts: 803 ✭✭✭jcon1913


    dobsdave wrote: »
    I was in the same position a few years ago. Told them I would pay them off over the year, which was fine.
    Think you can ask for it to taken from your tax credits over a period also.
    Obviously it depends on the scale of the debt.

    Yeah Revenue are looking for their pound of flesh quicker than that they want 50% of the arrears now and will talk about a payment plan over 18 months after that. :(


  • #4
    jcon1913
    Registered Users, Registered Users 2 Posts: 803 ✭✭✭jcon1913


    As of today we are going to sell our house and trade down thereby releasing some money - albeit to pay the taxman!

    We are with the EBS - anyone have any idea of how the process goes?

    We have all the forms etc and are reasonably competent at filing them out, not sure what the bank's attitude is to this sort of thing, they weren't giving away anything when I called in to the bank earlier.


  • #5
    Henry Ford III
    Moderators, Business & Finance Moderators Posts: 17,860 Mod ✭✭✭✭Henry Ford III


    I'd imagine once they get their mortgage repaid in full they'd be delighted.


  • #6
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    You need to put your house up for sale, when you get an offer and accept it, your Solicitor will draw up contracts and send to the purchaser's Solicitor. An agreed closing date will be in the contract - you receive €650k- your Solicitor will redeem mortgage of 280k with EBS and hand you over the balance. From the balance of 370k you pay Solicitor and Estate Agent fees and Revenue.

    Not sure what you mean by 'what is the banks attitude to this sort of thing' You are just selling your house and redeeming your mortgage as far as they are concerned.
    jcon1913 wrote: »
    As of today we are going to sell our house and trade down thereby releasing some money - albeit to pay the taxman!

    We are with the EBS - anyone have any idea of how the process goes?

    We have all the forms etc and are reasonably competent at filing them out, not sure what the bank's attitude is to this sort of thing, they weren't giving away anything when I called in to the bank earlier.


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  • #7
    jcon1913
    Registered Users, Registered Users 2 Posts: 803 ✭✭✭jcon1913


    We will need a new loan to buy a new house our credit record right now is not good. I know how selling a house works, and how redeeming a mortgage works. Will the EBS lend to us again?


  • #8
    Stheno
    Moderators, Business & Finance Moderators, Science, Health & Environment Moderators, Society & Culture Moderators Posts: 51,690 Mod ✭✭✭✭Stheno


    jcon1913 wrote: »
    We will need a new loan to buy a new house our credit record right now is not good. I know how selling a house works, and how redeeming a mortgage works. Will the EBS lend to us again?

    Probably not if your credit record is poor.


  • #9
    jcon1913
    Registered Users, Registered Users 2 Posts: 803 ✭✭✭jcon1913


    Stheno wrote: »
    Probably not if your credit record is poor.
    What do you base that on - experience? Do you work in a bank?


  • #10
    Trish56
    Registered Users, Registered Users 2 Posts: 1,256 ✭✭✭Trish56


    If you have a bad credit rating you have no hope of borrowing either with EBS or any lending institution.
    jcon1913 wrote: »
    We will need a new loan to buy a new house our credit record right now is not good. I know how selling a house works, and how redeeming a mortgage works. Will the EBS lend to us again?


  • #11
    jcon1913
    Registered Users, Registered Users 2 Posts: 803 ✭✭✭jcon1913


    Trish56 wrote: »
    If you have a bad credit rating you have no hope of borrowing either with EBS or any lending institution.
    Okay we will look for another route to pay the Revenue, if we can't get a new mortgage on a new house then there is no point in trading down. Thanks for the advice.


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