Repossession questions

enricoh

Hi folks, my missus bought a gaff in 2006, 260k over 39 yrs on a tracker with bank of Scotland. The house might get 150k today.
After 2 years she missed one years repayments, got houseshare tenants in, got back repaying and the bank were happy enough to extend the term for a year to deal with repayments.
She lived in it for 4yrs but the commute to Dublin was too long and its rented out since and she tops up rent with about 250 a month.
She got a registered letter sent to her home place by tanager Ireland to say house is getting repoed due to arrears of 22k. She checked account for mortgage and the bank didn't take any money since January.
If they repo the house n sell it for 150k what happens to the 100k left on mortgage. Is it written off or does it follow us? Should we hire a loan/ bankruptcy crowd to deal with them. Thanks

Inquitus

enricoh wrote: »

Hi folks, my missus bought a gaff in 2006, 260k over 39 yrs on a tracker with bank of Scotland. The house might get 150k today.
After 2 years she missed one years repayments, got houseshare tenants in, got back repaying and the bank were happy enough to extend the term for a year to deal with repayments.
She lived in it for 4yrs but the commute to Dublin was too long and its rented out since and she tops up rent with about 250 a month.
She got a registered letter sent to her home place by tanager Ireland to say house is getting repoed due to arrears of 22k. She checked account for mortgage and the bank didn't take any money since January.
If they repo the house n sell it for 150k what happens to the 100k left on mortgage. Is it written off or does it follow us? Should we hire a loan/ bankruptcy crowd to deal with them. Thanks

No the 150k debt or whatever the diff between the sale price and the amount owed becomes her debt, she will have to come to an accommodation with the bank to repay this. If she decides to go bankrupt then this debt can be written off, but any other assets she has her name against will be considered as part of the banruptcy arrangement.

Aka Ishur

enricoh wrote: »

Hi folks, my missus bought a gaff in 2006, 260k over 39 yrs on a tracker with bank of Scotland. The house might get 150k today.
After 2 years she missed one years repayments, got houseshare tenants in, got back repaying and the bank were happy enough to extend the term for a year to deal with repayments.
She lived in it for 4yrs but the commute to Dublin was too long and its rented out since and she tops up rent with about 250 a month.
She got a registered letter sent to her home place by tanager Ireland to say house is getting repoed due to arrears of 22k. She checked account for mortgage and the bank didn't take any money since January.
If they repo the house n sell it for 150k what happens to the 100k left on mortgage. Is it written off or does it follow us? Should we hire a loan/ bankruptcy crowd to deal with them. Thanks

She didnt run up arrears of 22k since jan, and how did she not notice that she had 10 months rent(6 grand a low estimate?) and top up (2.5k) extra in her accounts. Your not telling us the full story or she's not telling you the full story.

enricoh

Hi inquitus, after a bit of googling tanager is a vulture fund who bought rbs, s portfolio at a big discount when rbs legged it from Ireland. I was hoping they bought house for say 90k , flog for say 150 n were happy with three quick buck.

The missus is not the most financial savvy in the world, she wants to try to pay the 22k, whereas I'd say let them repossess if the balance is written off.
No its a repayment of 790 a month, I assumed the year missed is the reason they stopped drawing down the repayments this year

April 73

So where is the rent money that was paid since last April & the €250 a month your wife is putting towards the mortgage?

How much of the €22,000 is previous arrears - was the previous amount of arrears not recapitalised?

The bank is not just going to repossess, sell at €150,000 and ignore the fact that your wife owes €100,000. If you don't want to end up owing a six figure sum on a house you won't own you really need professional advice.

Inquitus

enricoh wrote: »

Hi inquitus, after a bit of googling tanager is a vulture fund who bought rbs, s portfolio at a big discount when rbs legged it from Ireland. I was hoping they bought house for say 90k , flog for say 150 n were happy with three quick buck.

The missus is not the most financial savvy in the world, she wants to try to pay the 22k, whereas I'd say let them repossess if the balance is written off.
No its a repayment of 790 a month, I assumed the year missed is the reason they stopped drawing down the repayments this year

The balance isn't written off unfortunately enricoh, it remains her debt unless she comes to a bankrupcy arrangement, with property prices on the rise again, her best bet would be to try and get the mortgage back into compliance and keep paying until such time as the house is out of negative equity, and then sell it.

Banks usually auction off these properties and often don't even obtain the maximum price possible, leaving the debtor saddled with more debt than they might otherwise.

I would recommend she contact a free advisory service like https://www.mabs.ie/ and get some professional input on how to proceed.

martingriff

April 73 wrote: »

So where is the rent money that was paid since Jan & the €250 a month your wife is putting towards the mortgage?

How much of the €22,000 is previous arrears - was the previous amount of arrears not recapitalised?

The bank is not just going to repossess, sell at €150,000 and ignore the fact that your wife owes €100,000. If you don't want to end up owing a six figure sum on a house you won't own you really need professional advice.

I think this is a very important question to get answered as this seems to be the whole reason for the repo. You said that the bank was okay with the other missed payment and the mortgage got extended. So you need to figure out where that money went and get it back. It is a lot of money and way save the house from been repossessed.

Going by your question yes they will still come at your wife for the remainder. Also if she goes for bankrupt all her assets and money will be part of that. Think long and hard of the best way forward because bankruptcy is not a walk in the park that from your last line you think it is.

enricoh

April 73 wrote: »

So where is the rent money that was paid since Jan & the €250 a month your wife is putting towards the mortgage?

How much of the €22,000 is previous arrears - was the previous amount of arrears not recapitalised?

The bank is not just going to repossess, sell at €150,000 and ignore the fact that your wife owes €100,000. If you don't want to end up owing a six figure sum on a house you won't own you really need professional advice.

I'm just flicking through the reams of paper that the bank's solicitors sent and no direct debit has been paid since april 2014. ffs. i may get professional advice on this.

martingriff

enricoh wrote: »

I'm just flicking through the reams of paper that the bank's solicitors sent and no direct debit has been paid since april 2014. ffs. i may get professional advice on this.

You need to find out where did the money go. Get your wife to check her banks statement and find out where the payments for every month went and then go to the bank and see if you can see where that account is.

April 73

enricoh wrote: »

I'm just flicking through the reams of paper that the bank's solicitors sent and no direct debit has been paid since april 2014. ffs. i may get professional advice on this.

Does the rent get paid into the same account that the mortgage payments are made from? Has the rent not been accumulating in that bank account?

What about the €250 extra payments? Have they not been made either?

How was this not noticed since January? Have there been no letters saying the mortgage payments have been missed before now?

You need to go through the account statements very carefully. Has the rent money been spent?

slowjoe17

enricoh wrote: »

I'm just flicking through the reams of paper that the bank's solicitors sent and no direct debit has been paid since april 2014. ffs. i may get professional advice on this.

Check all the bank statements first, but professional advice is the way to go.

How much do you trust her? 18 months of missed payments without her knowing? I would struggle to believe that.

simdan

39 year mortgage is the most shocking thing about this. RBS should never have been allowed to offer this in the first place.

martingriff

simdan wrote: »

39 year mortgage is the most shocking thing about this. RBS should never have been allowed to offer this in the first place.

That was low for a mortgage in some places even in my parents time that was still low. I thinks there's were 40 and that was the 1970's

handlemaster

This is just BS or utter impotence by the OPs wife . There is no way the bank werent sending out letters and calling on a regular basis about this. No way at all. This is not the full story here.

ct5amr2ig1nfhp

Mind boggling that someone wouldn't notice nearly 15k in their account.
Get your misses to contact the bank and mabs.

Butters1979

After already been a year behind she hasn't paid the mortgage in two and a half years?

There is no way the bank would not have said anything until now. Have you talked to your wife about this? "The missus is not the most financial savvy in the world" is a massive understatement.

You need to figure out where all the rent money went to. Is it just sitting there or has it been spent, and figure out exactly how much is owed, you may come to a restructuring agreement with the bank but it looks like it's gone too far.

Bottom line is an internet forum is no good for you now, you need professional council.

usernamegoes

Perhaps speak with them about an assisted voluntary sale in return for a write off of the residual claim.

April 73

We really don't have enough info to know whether there's a hope of doing a deal.
We don't know if the wife is working, has an income, what the rent is or what other levels of debt or income the couple has.
A bank won't just write down a mortgage because it's in arrears.
We haven't gotten anything like the full story here.

antoinolachtnai

Tanager want out and you need to put your best foot forward in dealing with them. They have no interest in making anybody bankrupt. They just want to recover as much money as they can, quickly.

You need to get the facts and then find a professional who is comfortable negotiating on your behalf.

Various things have been said about the facts of how the arrears arose. Transferring loans between the old lender and the new one could have caused all sorts of administrative problems so I would not rush to judgement.

I would take professional advice before making further payments.

Quorom

Not the full story being given here ! However, Tanager bought the mortgage book from BOS at a 58% discount, so there are two options open to you, firstly ask them that if you sell the property voluntarily will they write off the shortfall, secondly you could ask them that if you bring the mortgage back from default can the mortgage continue ? Vulture funds are more open to doing deals than the main Banks, as they want to bag some profit and run.

Axton Ripe Vial

Axton Ripe Vial wrote: »

Mind boggling that someone wouldn't notice nearly 15k in their account.
Get your misses to contact the bank and mabs.

You would be surprised how little people monitor their accounts.

I was talking to someone in work recently and I mentioned that I check my current account every day, just so I know exactly what's happening with it and to watch for fraud etc.

He was very surprised and said he hasn't check his current account (or looked at a bank statement) in over 6 months.

martingriff

Ricky Itchy Gorilla wrote: »

You would be surprised how little people monitor their accounts.

I was talking to someone in work recently and I mentioned that I check my current account every day, just so I know exactly what's happening with it and to watch for fraud etc.

He was very surprised and said he hasn't check his current account (or looked at a bank statement) in over 6 months.

True but 15K be some short coming to not notice that. When they said they never look at statements how about receipt when getting money out

castle2012

martingriff wrote: »

True but 15K be some short coming to not notice that. When they said they never look at statements how about receipt when getting money out

I think so . Not to notice 15k . Come on I cant say id blame the bank in this scenario. Id understand if it was a family under pressure.

martingriff

martingriff wrote: »

True but 15K be some short coming to not notice that. When they said they never look at statements how about receipt when getting money out

I doubt they check them to be honest, you very rarely see people withdrawing money now who get a receipt and the impression he gave was he not monitored his account in anyway in the past 6+ months as I mentioned it when BOI had the issue with salaries being paid there a few weeks ago and he more or less said he just assumed he was paid every month correctly.

keane2097

That anecdote about one random guy being unbelievably negligent (literally unbelievably) certainly paints this unrelated situation in a different light.

keane2097

keane2097 wrote: »

That anecdote about one random guy being unbelievably negligent (literally unbelievably) certainly paints this unrelated situation in a different light.

While most people check their current account at least every now and then I could definitely see people never bothering to check a mortgage account. They pay the money in and expect the bank to take it, personally I'd be keeping an eye on it but a lot of people would just treat it like paying money directly to the bank rather than into another account of theirs and just treat it like its the banks once it enters that account and therefore see no need to check it.