mortgage repayment problems

handbagmad

I just want to run something by you folks.

My sister has her house ten years now. She has lost her job due to illness. She has kept up mortgage payments in full till now.
She has contacted her bank been to meetings n told them she is in dire financial stress and needed help.
bank have been less than helpful, honestly she has gone to deaths door for worrying. The bank have ordered her to fill in a financial statement which was sent in 2 months now.
Anyone been in similar situation?

Cushie Butterfield

Firstly, The Mortgage Interest Supplement is being would down & is no longer available to apply for.

Under the Central Bank's Code of Conduct on Mortgage Arrears (CCMA), lenders must operate a Mortgage Arrears Resolution Process (MARP) with customers who are in mortgage arrears or who are likely to fall into mortgage arrears (pre-arrears). Read more about the steps involved in the MARP.

The important thing is that she doesn't agree to anything that she doesn't fully understand or can't honestly envisage herself being able to commit to.

I'd strongly recommend that she seek some independent advice, as no doubt she has other debts that are bound to present problems in the not too distant future, so it's important that these are tackled now also. If she is ill she is probably not in the best frame of mind to tackle the entire situation without help from someone who is impartial & also used to dealing with people in her situation.

The Mortgage Arrears Information Helpline 0761 07 4050 is open from 9.30am to 5pm, Monday to Friday.


MABS, the Money Advice and Budgeting Service, can advise you on dealing with mortgage arrears as well as other forms of problem debt.



The MABS helpline 0761 07 2000 is open from 9am to 8pm, Monday to Friday. MABS also operates a nationwide network of centres, staffed by specialist money advisers, as well as an email service helpline@mabs.ie.


You can also contact your local Citizens Information Centre for face-to face information and advice, phone the Citizens Information Phone Service on 0761 07 4000, Monday to Friday, 9am to 8pm.


She might (if an option) consider renting out a room or rooms under the rent a room scheme http://www.keepingyourhome.ie/rent_a_room_scheme.html.en

gordongekko

Cannot stress this enough. Take copies of everything and keep a diary of all dealing s with the bank. They are not interested in your sister they are only interested in getting the money back.

handbagmad

Very informative posts thank you very much.
We will arrange appointment with local mabs.
We are trying as a family to help her financially as much as possible, its breaking my heart because I can see her being under such stress and pressure she's a different person.
she had been in contact with her bank regularly over the past few months but like 1st poster says she doesn't understand what she would be signing for different options.

Nothing thought of an honest person.
I hope we can get some peace of mind for her soon
Thanks a lot

Cushie Butterfield

handbagmad wrote: »

Very informative posts thank you very much.
We will arrange appointment with local mabs.
We are trying as a family to help her financially as much as possible, its breaking my heart because I can see her being under such stress and pressure she's a different person.
she had been in contact with her bank regularly over the past few months but like 1st poster says she doesn't understand what she would be signing for different options.

Nothing thought of an honest person.
I hope we can get some peace of mind for her soon
Thanks a lot

Firstly, it's great that she has a supportive family behind her.

MABS will probably tell you that there is a waiting list & recommend that you use the self-help templates from their website. I would push them for an appointment by stressing the urgency of her case considering her illness & frame of mind. They might be prepared to see her as a special case. The advantage of having MABS on your side is that they would contact various debtors on her behalf, therefore creating a buffer between them & your sister. More importantly if a company/financial institution receive communication from MABS directly on headed notepaper it sort of makes things more official & she would be less likely be cajoled into agreeing to something that wasn't in her best interest.

In the meantime make sure she is claiming the right social welfare payment, has applied for a medical card & applied for any tax refunds that she might be due.

I'm assuming she is claiming Illness Benefit at the moment? How long has she been claiming this?

She could, (with the support of her GP/Consultant/Social Worker) depending on the length, nature & expected duration of her illness look into the possibility of applying for either Invalidity Pension or if she doesn't have enough PRSI contributions Disability Allowance. The advantage of claiming either of these is that she would also benefit from secondary benefits such as Household Benefits Package, Winter Fuel Allowance, Free TV Licence & Free Travel Pass, which would help alleviate some of her financial difficulties.

Broadly speaking the main difference between IP & DA is that IP is based on her PRSI contributions record & is not means tested whereas DA is not based on her PRSI record but is means tested. Assuming that her GP would recommend that she claim either of the above her main problem would be that for either her illness would usually have been in existence for at least 12 months prior to applying & expected to last for at least 12 months afterwards. Naturally the timeframe would usually start after she had given up work, but if it was a case that she had missed a lot of time from work due to the illness then this may be counted. So, depending on how she is fixed timewise it is something that she could look into applying for now or when she reaches the 12 month stage. IP would be the preferable one to apply for if she has the necessary PRSI contributions, plus it pays a slightly higher rate (approx €5 per week more than DA).

There are backlogs in the application process, but she could continue to claim her Illness Benefit in the meantime & if that ran out she could claim Supplementary Welfare Allowance until her claim was approved & came through. It seems that quite a lot of applications are refused first time around & have to go to the appeal stage, but that just seems to be the norm these days.

Just something else for you to be looking into for the time being. It's good to know what's available should she need it further down the line, but hopefully she will be well on the road to recovery by that & won't need to apply for either.

P.S. Don't forget about tax refund research. If she gave up work during last tax year she may have paid too much tax & due a refund & if she gave up work during this tax year she might also be due a refund. http://www.revenue.ie/en/personal/tax-refunds.html

Cushie Butterfield

Just to add: Look into the possibility of reducing any existing bills e.g. changing from billpay mobile to PAYG, reducing broadband/landline/tv subscription, changing from cable to satellite/saorview combo. An initial outlay on a satellite system could yield a great saving within a matter of months. If she has Sky tv she could cancel, keep the box & still receive FTA channels. Then Saorview for the Irish channels.

If out of contract with either Sky or UPC if you get on to customer loyalty they usually offer a financial incentive to stay, once you are prepared to commit to a new contract which isn't really advisable at the moment but is an option. Review any insurance policies & shop around for cheaper alternatives when up for renewal. Get her to add you as an authorised contact on all her utilities so as you can speak on her behalf, or be a third party on a conference call.

Students are just going back to college so if location permits now would be a good time to look into renting out a room or two .

handbagmad

Thank you so much for replying and your advice.

Have taken it on board and will help her get sorted. Just worried its getting all too much for her.
Banks really are quite ruthless.

Thanks again, I know where to start now at least