need advice for my mum

simply86

so long story short my mum has a mortgage with tsb, my dad left 5 years ago and left her with the house to pay it. she is on job seekers atm and with the struggle of trying to pay it she is being evicted from the house with tsb bringing her to court on the money owed

thats fine its expected she cant pay it and we have been looking to get her into something else for a while but she has been holding on to try and do what she can to try and save the situation. she just got a letter in today from the revenue saying she owes them 22,000 from relief tax and has a month to pay it.....

i know nothing about it and i dont know what to tell her, she has been a housewife all her life raising 4 kids with the youngest just finishing college, my dad had his own business and was the supporter here, all she done was try her best pay the mortgage when he left

can anyone tell me whats going to happen here? she has no assets just a car in her name and a bare house from selling stuff to try and pay for the mortgage

i just want to know what i should do today to try and take the best approach with her as she is freaking out, would a phone call sort this out for now or do you think the sheriff would be involved?

any advice would be massively appreciated, she really doesnt deserve this today and i need to try and sort this out for her if possible

endacl

https://www.mabs.ie/

Immediately.

OU812

WOW. Can't even imagine the stress & pressure she must be under. OK as the other poster said, MABS immediately. They'll start to act on her behalf with her creditors (PTSB etc), taking away the stressful experience.

It's possible that one or all of the kids are going to have to step up & take her in so prepare for that. Also, I'd suggest she speaks to someone about divorcing your dad & getting a settlement from him.

Good luck.

simply86

i will call them now so thanks for that

yeah she has myself to fall back on but she has just been very stubborn leaving the house as she still thinks she can save the situation

ive been helping her alot with it all but this is the last straw now im sure for her, i cant believe that the rev could want 22k off a woman who cant pay the mortgage and is being forced out by the courts, for shame

schemingbohemia

What is "relief tax"? Was your mother involved in your father's business? You need to provide more detail about the Revenue demand.

Peregrinus

But you need to provide it to MABS, not to us. This situation is beyond the point where ideas offered on a discussion board are going to be much help. Endacl has, in the very first response, give you the best thing you are going to get on this board. The rest is just detail.

(Schemingbohemia - it seems that the Revenue are trying to reclaim tax reliefs previously granted. A wild guess says that this might have something to do with mortgage interest relief granted in previous years, with the Revenue now having discovered that the mortgage payments haven't been made. You don't get tax relief for mortgage interest that you haven't paid.)

simply86

Peregrinus wrote: »

But you need to provide it to MABS, not to us. This situation is beyond the point where ideas offered on a discussion board are going to be much help. Endacl has, in the very first response, give you the best thing you are going to get on this board. The rest is just detail.

(Schemingbohemia - it seems that the Revenue are trying to reclaim tax reliefs previously granted. A wild guess says that this might have something to do with mortgage interest relief granted in previous years, with the Revenue now having discovered that the mortgage payments haven't been made. You don't get tax relief for mortgage interest that you haven't paid.)

i was asking what i should do, its the first time hearing of this mabs tbh i was asking what i should do and i have been told, if i had known about this i would have done it already

how is she getting tax reliefs? the banks had a reduced rate mortgage for two years and it went back to full for the past 3, she has been trying to work out with the banks a solid number that could be repayed back a month, she never missed a payment even tho it wasnt the full amount that was owed but the banks said was acceptable until recently

Peregrinus

I'm guessing here, and I could be completely wrong, so don't take this as gospel.

But presumably at one time she was paying the full mortage payment each month? And she may have had her tax relief coded into her tax allowances, and routinely re-coded each year, so that her employer continued to calculate and deduct PAYE on the assumption that she was paying mortage interest on the standard terms. When she reduced payments or missed them her employer and the Revenue would have had no way of knowing that, so she would still have been getting tax relief for the full amount of the interest due, even though she wasn't paying it. Her tax deductions wouldn't have been adjusted unless she told the Revenue of her changed circumstances, and I entirely understand why that wouldn't have been uppermost on her mind at the time. But now the discrepancy has come to light.

I don't say any of this to criticise your mother - just to try and cast some light on what is happening now.

Anyway, MABS should be able to help her sort out exactly what is happening with more authority than I can, and to help her pick her way through it.

seamus

simply86 wrote: »

how is she getting tax reliefs? the banks had a reduced rate mortgage for two years and it went back to full for the past 3, she has been trying to work out with the banks a solid number that could be repayed back a month, she never missed a payment even tho it wasnt the full amount that was owed but the banks said was acceptable until recently

Well that's pretty much it. If she wasn't making full repayments or her repayments had been adjusted, but she was still receiving interest relief or TRS on the original amount, then Revenue will come looking for the overpayments back.

Look, don't stress that one too much. Revenue are reasonable, they're not going to arrive at the door at the end of next month and take stuff out of her house or bring her to jail. If she engages with them and explains her current situation, they're usually open to accepting phased repayments over a long period of time, without penalty.

As others have said though, us throwing out ideas here are not going to be useful. I would suggest that she looks into filing for personal insolvency and having your father declared jointly liable for the debts but that just raises a million more questions for you, that we can't answer.

She needs to see MABS today. And potentially FLAC too. She needs a professional to assist her with this.

johnnyskeleton

simply86 wrote: »

ive been helping her alot with it all but this is the last straw now im sure for her, i cant believe that the rev could want 22k off a woman who cant pay the mortgage and is being forced out by the courts, for shame

Just on a personal level, it wont do her much good blaming the revenue the banks and the courts. If revenue have made a mistake then she can appeal that decision and get a hearing about what its all about. If the banks arent entitled to claim it back then the courts will stop them.

Uno my Uno.

Go to a Solicitor immediately.