Bank representative calling to house?

Munstermad

Hi there, I just had a phone call from a representative from K.B.C Homeloans asking to meet to discuss the current state of the mortgage to see if there was something that could be done to help. My current mortgage situation is pretty grim, arrears etc, I won't go into the details. I'm just interested to know if anybody has had a similar approach, is this the norm now and if so how did you get on? Thanks. MM

godtabh

Whats the problem? They are offering to assist with your arrears surely its worth engaging?

Munstermad

There is no problem? Of course I am hopeful they can assist and find a way through my situation. I am simply asking my fellow Boardsies if they have been approached in a similar fashion as have never heard of a representative calling to a home, all past interaction with the bank has been over the phone or via letter? It would be nice to hear any advice they may have to offer and if they found a solution.

The_Morrigan

The banks are being a bit more accommodating to their customers these days, they have mobile staff that will meet you in your home to discuss arrears. It just means you are in a comfortable environment with no nosy ear wigging going on (one of the branches in Dublin city centre has the worst set up for privacy for instance), and they don't work 9-5 so they can meet you at any time.

I sure if you felt more comfortable an appointment could be made for the local branch.

Munstermad

The_Morrigan wrote: »

The banks are being a bit more accommodating to their customers these days, they have mobile staff that will meet you in your home to discuss arrears. It just means you are in a comfortable environment with no nosy ear wigging going on (one of the branches in Dublin city centre has the worst set up for privacy for instance), and they don't work 9-5 so they can meet you at any time.

I sure if you felt more comfortable an appointment could be made for the local branch.

Thanks for your reply, I'm not sure there is a branch in Limerick but I might get someone to sit in on the meeting with me. I live on my own with my 3 children and I suppose the only way to describe my financial situation is in crisis. It would be nice to have a bit of support on the day. Thanks for the reply, as the prospect of meeting the bank in person is a bit daunting if I'm honest.

The_Morrigan

Munstermad wrote: »

Thanks for your reply, I'm not sure there is a branch in Limerick but I might get someone to sit in on the meeting with me. I live on my own with my 3 children and I suppose the only way to describe my financial situation is in crisis. It would be nice to have a bit of support on the day. Thanks for the reply, as the prospect of meeting the bank in person is a bit daunting if I'm honest.

Have a read of this thread - http://www.boards.ie/vbulletin/showthread.php?t=2057255378

Maybe give MABs a ring, they may have hands on experience of these types of meetings.
There is also no reason why you can't contact the representative and ask them to give you a run through of what to expect and also if you need to have anything prepared to make the meeting more productive.
I realise it's a tough time and very daunting, but it is best if you do try to engage with them and have open and frank discussions about them.

Good luck with the meeting.

TrishSimon

Munstermad wrote: »

Hi there, I just had a phone call from a representative from K.B.C Homeloans asking to meet to discuss the current state of the mortgage to see if there was something that could be done to help. My current mortgage situation is pretty grim, arrears etc, I won't go into the details. I'm just interested to know if anybody has had a similar approach, is this the norm now and if so how did you get on? Thanks. MM

Hello there,
I have a mortgage with KBC and this process is the norm for them, yes they are a little pushy regarding asking you to meet with them but I would not be worried they are trying to help with your arrears issue. When I was living in the property I have mortgaged with them 3 of my neighbours were out of work it was an apt block they too banked with KBC and when they called them to let them know they were made redundant a representative called to them also. It's no harm meeting with them they probably have a payment plan to discuss with you and if you feel they are being over the top or are causing you further stress tell them that and you can also complain to the ombudsman but I cant see it going that far.
Meet with them and see what they say down the road it could come to your house being repossessed if you don't find a solution now or even make an effort to resolve the arrears issue and you dont want that.

Munstermad

Quick update:
KBC representative called today, he was very nice and straight to the point. Suggested a few options, definitely seems that the bank are trying to find a solution. I feel like there is some hope of keeping the house for the 1st time in 4 years... Fingers crossed, will let ye know what they offer a.s.a.p.


....................................................................Big sigh of relief!!!

The_Morrigan

Munstermad wrote: »

Quick update:
KBC representative called today, he was very nice and straight to the point. Suggested a few options, definitely seems that the bank are trying to find a solution. I feel like there is some hope of keeping the house for the 1st time in 4 years... Fingers crossed, will let ye know what they offer a.s.a.p.


....................................................................Big sigh of relief!!!

That's good to hear.

TrishSimon

Munstermad wrote: »

Quick update:
KBC representative called today, he was very nice and straight to the point. Suggested a few options, definitely seems that the bank are trying to find a solution. I feel like there is some hope of keeping the house for the 1st time in 4 years... Fingers crossed, will let ye know what they offer a.s.a.p.


....................................................................Big sigh of relief!!!

Great news a bit of relief for xmas.

Lantus

Always a very good idea to cooperate with the bank. Cooperative and fully engaged owners are much harder to remove then those who bury heads and pretend its going to go away.

It provides a full record in case of any future legal actions which you should keep as a record of all decisions and outcomes.

Hope you get things sorted.

Remember its only money which is just an abstract piece of paper we invented to control goods and services. Hopefully we will start to use technology and move away from such a badly designed system for the benefit of all mankind. Its possible but we need more education.

Deenie123

Lantus wrote: »

Remember its only money which is just an abstract piece of paper we invented to control goods and services. Hopefully we will start to use technology and move away from such a badly designed system for the benefit of all mankind. Its possible but we need more education.

Like bitcoin? :rolleyes:

There will always be currency. Feck sake.


OP, glad to hear you have a bit of relief ahead of Christmas

o1s1n

Lantus wrote: »

Always a very good idea to cooperate with the bank. Cooperative and fully engaged owners are much harder to remove then those who bury heads and pretend its going to go away.

It provides a full record in case of any future legal actions which you should keep as a record of all decisions and outcomes.

Hope you get things sorted.

Good advice.

Lantus wrote: »

Remember its only money which is just an abstract piece of paper we invented to control goods and services. Hopefully we will start to use technology and move away from such a badly designed system for the benefit of all mankind. Its possible but we need more education.

Dafuq?

Debt is debt. It doesn't matter if it takes the form of 'abstract pieces of paper', numbers on a computer or farm animals you owe the farmer down the road. It's all the same, something you owe.

Munstermad

Quick update: KBC Bank contacted me today and have approved a restructured Mortgage arrangement, this involves (1) refinancing the arrears into the mortgage and spreading it out over the "new" term of the loan. (2) Extending the term of the mortgage until I'm 70. (3) Warehousing 50 percent of the loan interest free until the last payment is due, i.e. a bubble payment at the end. (4) Fixing the repayments at a manageable amount to service the other 50 percent of the mortgage.
All this is being done on a joint mortgage with no engagement/cooperation from the other party named on the loan. (None for the past 5 years)
So effectively for me it means myself and my children get to stay in our family home, with a manageable mortgage repayment plan that I can and will wholeheartedly pay, there is no debt write off, I will be paying my debt, not the state, not the bank and there is a sense of regained self respect from that.... For the first time in 5 years I don't have to worry about personal insolvency, repossession and possible homelessness.
MASSIVE SIGH OF RELIEF....
So for anyone in a similar situation, it may not be as hopeless as it seems, keep talking to your bank...
Thanks for all the advice!!!

gaius c

Not meaning to rain on your parade but:

(3) Warehousing 50 percent of the loan interest free until the last payment is due, i.e. a bubble payment at the end.

What happens if you don't have that money?
You could be evicted at 70 years of age having paid half the mortgage for your entire working life.

With respect, I think you should seek alternative & independent advice. The bank are not your friend and while it's important to work with them towards a solution, they have their own interests at heart, not yours.

Deenie123

I thought the OP meant that they were going interest "free" on half the mortgage, while servicing the other half, with the interest on the unserviced part coming due at the end of the term, rather than not paying off the principal...

Barney Stone

Munstermad wrote: »

Quick update: KBC Bank contacted me today and have approved a restructured Mortgage arrangement, this involves (1) refinancing the arrears into the mortgage and spreading it out over the "new" term of the loan. (2) Extending the term of the mortgage until I'm 70. (3) Warehousing 50 percent of the loan interest free until the last payment is due, i.e. a bubble payment at the end. (4) Fixing the repayments at a manageable amount to service the other 50 percent of the mortgage.
All this is being done on a joint mortgage with no engagement/cooperation from the other party named on the loan. (None for the past 5 years)
So effectively for me it means myself and my children get to stay in our family home, with a manageable mortgage repayment plan that I can and will wholeheartedly pay, there is no debt write off, I will be paying my debt, not the state, not the bank and there is a sense of regained self respect from that.... For the first time in 5 years I don't have to worry about personal insolvency, repossession and possible homelessness.
MASSIVE SIGH OF RELIEF....
So for anyone in a similar situation, it may not be as hopeless as it seems, keep talking to your bank...
Thanks for all the advice!!!

Glad to hear you feel better about the situation.

gaius c

Deenie123 wrote: »

I thought the OP meant that they were going interest "free" on half the mortgage, while servicing the other half, with the interest on the unserviced part coming due at the end of the term, rather than not paying off the principal...

"Bubble payment" implies both. Either way, a considerable sum of cash will be required at the end of the mortgage term.

cerastes

gaius c wrote: »

Not meaning to rain on your parade but:

What happens if you don't have that money?
You could be evicted at 70 years of age having paid half the mortgage for your entire working life.

With respect, I think you should seek alternative & independent advice. The bank are not your friend and while it's important to work with them towards a solution, they have their own interests at heart, not yours.

I agree with you to some extent, the bank has their own interests in mind, but paying half the mortgage for its duration and assuming the other half can't be paid, surely that means that would be like paying less than rent price in your own home, with the potential or option to buy if you can afford it.

Mrs OBumble

cerastes wrote: »

... would be like paying less than rent price in your own home, with the potential or option to buy if you can afford it.

Indeed.

The amount that the OP will be paying is likely to be well less than what they would be paying to rent somewhere, and they don't have a LL to deal with. That's a win in itself.

They still have an underlying problem that the other partner hasn't communicated or contributed for five years. If that continues, the OP could be left with a home that they cannot sell because the joint partner won't assist. Maybe this will get sorted out as part of divorce proceedings at some stage. Maybe the ex will be deceased between now and the OP turning 70. Maybe they will start at least communicating.

At least this solution gives the OP somewhere to live and the bank some return on their loan and assurance that it will looked after.

gaius c

cerastes wrote: »

I agree with you to some extent, the bank has their own interests in mind, but paying half the mortgage for its duration and assuming the other half can't be paid, surely that means that would be like paying less than rent price in your own home, with the potential or option to buy if you can afford it.

It's an assumption that may not be true.

spaceHopper

Well done OP hope it works out,

Re others, I'm guessing that if the 50% is interest free and lets say that the OP has young children and say under 50 in 20 to 25 years the value of the reaming 50% will have been eaten away by inflation and house price growth so that in will be less than 50% of the value of the home the she's have her family grown up by then and if needs she can sell the house and down size. To me it sounds like a good deal, but it can't hurt to talk to MABS o some other advisers.

Also in the mean time chase the ex for their part of the picture and if possible take out or keep up any life insurance on them encase they pass away you could clear the mortgage.

Shedite27

gaius c wrote: »

What happens if you don't have that money?
You could be evicted at 70 years of age having paid half the mortgage for your entire working life.

With respect, I think you should seek alternative & independent advice. The bank are not your friend and while it's important to work with them towards a solution, they have their own interests at heart, not yours.

By age 70 you've paid half a mortgage, the remainder interest free so with inflation eating into that, the remainder will be modest by 2040 (or whatever). I guess by then the hope would be that kids etc would have moved on and the OP could sell at quite a bit more than today's prices, and downsize to cover the bubble payment.

Well done OP, good example for hopefully more to follow.

the_syco

Munstermad wrote: »

Quick update: KBC Bank contacted me today and have approved a restructured Mortgage arrangement, this involves (1) refinancing the arrears into the mortgage and spreading it out over the "new" term of the loan. (2) Extending the term of the mortgage until I'm 70.

(None for the past 5 years)

Has the bank has refinanced the loan for the one person? If so, have you looked into either buying their percentage from the ex (or did they put anything towards the purchase?), or having the ex removed from the deeds?

gaius c

Shedite27 wrote: »

By age 70 you've paid half a mortgage, the remainder interest free so with inflation eating into that, the remainder will be modest by 2040 (or whatever). I guess by then the hope would be that kids etc would have moved on and the OP could sell at quite a bit more than today's prices, and downsize to cover the bubble payment.

We don't know that from the information given. The term "bubble payment" implies capital AND banked interest.

Well done OP, good example for hopefully more to follow.

I'm not sure if "well done" is the appropriate response for somebody who may or may not be getting a significant debt writedown at the expense of fellow citizens.

Shedite27

gaius c wrote: »

We don't know that from the information given. The term "bubble payment" implies capital AND banked interest.

Well that's how I would read the following. It wouldn't be "interest free" if the final payment includes interest. Then it would be "interest defferred".

Munstermad wrote: »

(3) Warehousing 50 percent of the loan interest free until the last payment is due, i.e. a bubble payment at the end.

gaius c wrote: »

I'm not sure if "well done" is the appropriate response for somebody who may or may not be getting a significant debt writedown at the expense of fellow citizens.

OP isn't getting a debt write down (I'm the most critical of debt write downs), they're getting a debt restructuring. I admire them (and the bank) coming up with a solution that suits both parties.

Munstermad

gaius c wrote: »

Not meaning to rain on your parade but:

What happens if you don't have that money?
You could be evicted at 70 years of age having paid half the mortgage for your entire working life.

With respect, I think you should seek alternative & independent advice. The bank are not your friend and while it's important to work with them towards a solution, they have their own interests at heart, not yours.

Thanks and yes I am going to have the agreement looked at before I sign. The phoenix project have offered to check it out for me. I agree the bubble is not ideal. But it is frozen, no interest payable on this portion, and with inflation and hopefully 3 independent adult children by then it won't be such an ominous amount. The alternatives are much worse believe me. MM

Munstermad

Deenie123 wrote: »

I thought the OP meant that they were going interest "free" on half the mortgage, while servicing the other half, with the interest on the unserviced part coming due at the end of the term, rather than not paying off the principal...

Half the mortgage will be serviced, principal and interest. The other half will be frozen interest free. Fully payable at the end of the term..27+ years. There will be no interest due on this portion.

Munstermad

the_syco wrote: »

Has the bank has refinanced the loan for the one person? If so, have you looked into either buying their percentage from the ex (or did they put anything towards the purchase?), or having the ex removed from the deeds?

The bank has refinanced for one person. Buying ex out is not an option at this time and the bank won't remove him from deed. He is not cooperative but he is still joint and several liable for mortgage.

Munstermad

gaius c wrote: »

We don't know that from the information given. The term "bubble payment" implies capital AND banked interest.
The bubble payment is principal only. No interest will be paid on this half.


I'm not sure if "well done" is the appropriate response for somebody who may or may not be getting a significant debt writedown at the expense of fellow citizens.

If you read my post fully you will see that I stated there is no debt write off. So you can rest easy.

Warrior1916

David Hall I would contact from New Beginnings or Irish Mortgage Holders association....he is a champion of those in mortgage distress