About to miss first mortgage payment in 19 years

chisel1

About to miss first mortgage payment in 19 years. My friend (I do his books), is broke and has no work. Ive advised he close his business. He has no money to pay this months mortgage and credit card ( but will make the minimum payment on credit card).
Can someone advise how long it takes to get a negative listing on the ICB?

He is on a tracker and only has a few months to go before its finished. Is it possible to renegotiate a repayment plan with a Building Society so close to its end?

pilly

ICB shows the last 24 months payments on a mortgage so it depends really when someone looks for a credit report. If he only has a few months left is there absolutely no way he could struggle his way through it? Pity to ruin a good credit record for the sake of a few months.

listermint

If he is broke he should look for alternate work to close out the mortgage. Bar Work, Food Delivery, Anything really to get it over the line.

Avatar MIA

This is where the local credit union would be invaluable. They may be reluctant if no savings though.

pilly

Even sell a couple of things to make the payments maybe?

coylemj

Avatar MIA wrote: »

This is where the local credit union would be invaluable. They may be reluctant if no savings though.

Lending someone money to make payments on a loan is simply taking on another lender's problem and is not good lending practice.

Avatar MIA

coylemj wrote: »

Lending someone money to make payments on a loan is simply taking on another lender's problem and is not good lending practice.

We're looking at this from the OP's POV.

If he's nearing the end of his mortgage with a full clean credit history, he's hardly mr fly by night.

coylemj

Avatar MIA wrote: »

We're looking at this from the OP's POV.

Fine, you chip in tea and sympathy, I'll deal with reality and the probable attitude that will be taken by an alternative lender - 'you can't pay your mortgage, if I give you a loan to pay it, how are you going to pay me?

chisel1

balance outstanding on mortgage is 4.5k. Under normal circumstances it would be payable but because of ill health his reserve is gone.

NIMAN

Thats tight, missing a payment with only 4.5k left to pay.

Can family not help out?

tracey turnblad

The only advice I can give you is to contact the bank do not ignore this problem they may be willing to come to some arrangement. I hope he gets sorted

Ring the bank advise them you are In arrears and they will enter you into the mortgage arrears resolution process they may be able to slightly extend the mortgage or reduce the payments for you

jimmycrackcorm

the banks have to follow the MARP process so the first port of call is to let them know ASAP.

Sound Bite

Contact the bank and request a mortgage holiday/repayment under the circumstances. I think they can approve up to 3 months in some cases.

If they approve this it won't affect his credit rating.

thierry14

Poor guy

19 years of ploughing away and right at end gets in trouble

You should set up a fundraising account OP

Let us know when setup and I will donate 10e

cup of tea

I know it is stating the obvious but has he mortgage protection Insurance?

You would be surprised the amount of people that are unaware they even have a policy. Banks were forced to refund certain policies but only had to go back so far. As his mortgage was created such a long time ago there is a slim chance he might have one of these policies in place, though unlikely.

Has he got a work vehicle he could flog for €5k!?

chisel1

One sibling. Very well off, said no - outright.


Business van is for sale. The most it will release is 2k, Wont help this month though.

I have arranged to pay this month for him. But not till about the 27th, passed the due date of 17th.

He owes tax 4k, credit card 1.7k, 2.6k due on other "compulsory" fees which must be paid to kids college by end of the month.
Credit card will be ok with minimum payment. (interest and fees not withstanding)
Tax - I am talking to collections (revenue) on his behalf.
I believe a credit plan can be entered into for the college.

Hes had a heart attack and surgery but is ok now.

CramCycle

Compulsory fees for college. If it's one of the main third level institutions, you will get away with late payments for quite a few months. The kids just won't get access to their exam results.

NIMAN

chisel1 wrote: »

One sibling. Very well off, said no - outright.

With family like that .........:mad:

Stealthfins

A few months to go, he or she will be OK.
I know people who've been playing cat and mouse with banks since 2008 and they're still in their home's and probably paid up 20â„… of the last 9 year's.

They could take a few months break from the payments, they're OK

tracey turnblad

CramCycle wrote: »

Compulsory fees for college. If it's one of the main third level institutions, you will get away with late payments for quite a few months. The kids just won't get access to their exam results.

Yes I work in a college this is true

chisel1

tracey turnblad wrote: »

The only advice I can give you is to contact the bank do not ignore this problem they may be willing to come to some arrangement. I hope he gets sorted

Sound Bite wrote: »

Contact the bank and request a mortgage holiday/repayment under the circumstances. I think they can approve up to 3 months in some cases.

If they approve this it won't affect his credit rating.

thierry14 wrote: »

Poor guy

19 years of ploughing away and right at end gets in trouble

You should set up a fundraising account OP

Let us know when setup and I will donate 10e

Thanks, but if I suggested that he'd crack. The last couple of years have not been good all round.

Stealthfins wrote: »

A few months to go, he or she will be OK.
I know people who've been playing cat and mouse with banks since 2008 and they're still in their home's and probably paid up 20â„… of the last 9 year's.

They could take a few months break from the payments, they're OK

Thanks, we will contact them on Monday.

chisel1

tracey turnblad wrote: »

Yes I work in a college this is true

Ill see if they will accept installments over the next few months.

CramCycle

chisel1 wrote: »

Ill see if they will accept installments over the next few months.

No need for installments unless it is a private college in which case give them a call. They will have their student cards for the year. Just make sure it is paid by exam results time or before next year. Don't get me wrong, it's not my first option but given the situation.

Also the advice above about any other work is good, take anything if it keeps the wolves from the door. If he was self employed though for so many years, I imagine he has some skills which could land him an OK job.

3DataModem

The bank will almost definitely let him rearrange with such a small balance. Ask for a holiday OR a reduction in monthly and term extension. Once approved ensure you have a plan to pay.

Trish56

Does he have an income protection policy by any chance or a payment protection policy for the mortgage ?

He should speak to MABS who are very experienced in dealing with banks etc.

Alkers

If the kids are of college age, get them to get part-time jobs and cough up a portion to help out their old man. In the mean time, make contact with the bank and explain the situation, should be possible to much reduce the monthly payments by extending the term. Ditto re the university, explain the situation and come to an agreement. Are they in a position to rent out a room in the family home? 14k tax free potential there, could get them over the hump. Now that he's recovering, could his business become viable again?

Avatar MIA

Trish56 wrote: »

Does he have an income protection policy by any chance or a payment protection policy for the mortgage ?

He owns his own work van, and therefore likely self employed and wont qualify for income protection.

Trish56

Income Protection policies are specifically for the self employed to protect his income if he becomes ill.

Avatar MIA wrote: »

He owns his own work van, and therefore likely self employed and wont qualify for income protection.

jd

chisel1 wrote:

I have arranged to pay this month for him. But not till about the 27th, passed the due date of 17th.

I wouldn't worry about been 2 weeks later like that. The question would be how will he pay the following months

eeguy

CramCycle wrote: »

No need for installments unless it is a private college in which case give them a call. They will have their student cards for the year. Just make sure it is paid by exam results time or before next year. Don't get me wrong, it's not my first option but given the situation.

Don't pay the college unless they're shouting for it.
You can get away without paying that till June. The kids can get their results straight from the lecturer if the college doesn't put them online.

So now you're more than halfway there to mortgage freedom

newdigi

OP how much is owed on the 17th?

Mrs OBumble

Sounds like the kids need a giant kick up the backside. Why arent they paying their own college fees?

eeguy

Mrs OBumble wrote: »

Sounds like the kids need a giant kick up the backside. Why arent they paying their own college fees?

Not many 17 or 18 year olds would have 3k+ a year in fees plus living expenses. No one in my family ever has at any rate.

jimmycrackcorm

chisel1 wrote:

Business van is for sale. The most it will release is 2k, Wont help this month though.

Is this wise? It'll release cash but what will he do to earn income later?

nostro

To be frank I think people are getting way to worked about this. There is no possibility that a bank would take legal action with such a small amount owed. Maybe after a few years of no engagement and no payments but even then it is unlikely. He should just stop payments if he can't pay now and then pay it off when he has the money to spare or is back on his feet. Sure his ICB report will be affected for a while but should he really be borrowing more money anyway. If he is not applying for more loans then ICB report doesn't matter.

Avatar MIA

jd wrote: »

I wouldn't worry about been 2 weeks later like that. The question would be how will he pay the following months

Not gospel, but as long as paid within the month my understanding is that it wont count as a missed payment and be reported to the ICB.

newacc2015

Mrs OBumble wrote: »

Sounds like the kids need a giant kick up the backside. Why arent they paying their own college fees?

You say this everytime someone mentions their children in College dont contribute to the household, yet you never know the persons circumstances... Or even seem to value the importance of education.

You are always very quick to attack the children lack of work ethic. These children might have 40 hours of lectures a week and maybe another 20-30 hours of study, yet you think they are lazy?

What if OP's children are studying medicine where they no time to relax never mind find a job. Do they still need a giant kick up the backside? The fact is OPs childrens only priority in College should be to get a 2.1 or a first, otherwise their 4 years in College was a total waste of time.

There is no point in OPs children messing up their final grade which will affect their career for life to pay their parent mortgage.

I see no mention of the wife of the household working. Is it grand for the women of the house not to be in paid employment, but totally unacceptable for the children studying 60 hours a week?

Mrs OBumble

Dad's had a heart attack, could not keep his business going - and still expected to support Snowflake through college? Not in my world.

Let Snowflake go part time, or even defer their studies for a couple of years, get a job and support the family in the meantime while the parents need it.

And 40 hours of lectures a week. From 9am - 5pm solid every day? Yeah, right, that happens.

I would assume that the wife's job is what is putting food on the table and the lights on. If not, then they'd have been in trouble long before now.

eeguy

Mrs OBumble wrote: »

Dad's had a heart attack, could not keep his business going - and still expected to support Snowflake through college? Not in my world.

Let Snowflake go part time, or even defer their studies for a couple of years, get a job and support the family in the meantime while the parents need it.

And 40 hours of lectures a week. From 9am - 5pm solid every day? Yeah, right, that happens.

I would assume that the wife's job is what is putting food on the table and the lights on. If not, then they'd have been in trouble long before now.

I think you have very entrenched views and are not willing to accept another point of view.
I disagree with all your points.

DesperateDan

Mrs OBumble wrote: »

Let Snowflake go part time, or even defer their studies for a couple of years, get a job and support the family in the meantime while the parents need it

That's equivalent to getting in to debt for two years and ensuring the kids finish college. Except they'll have meaningful finances coming in and everyone will be significantly better off.

Your proposal is 'everyone struggle for 4 years until the kids have deferred, helped with debts and are out of college' vs 'everyone struggle for 2 years until the kids are out of college and have prospects'.

Mrs OBumble wrote: »

And 40 hours of lectures a week. From 9am - 5pm solid every day? Yeah, right, that happens..

I went to college from 07-12 and worked every weekend and holiday for those 5 years. Roughly 20 hours a week. During those years I had no college fees due to means testing and received the full maintenance grant (both of which have been cut significantly today).

I was careful with money but did not have a spare euro to hand over to my parents during that time, so certainly in my case a full-time college kid cannot also help with the upkeep of the house, unless they are living with their parents.

We had over 30 hours of lectures a week spread across the day from 9-5

newacc2015

Mrs OBumble wrote: »

Dad's had a heart attack, could not keep his business going - and still expected to support Snowflake through college? Not in my world.

You do you, most people will totally disagree with that opinion though

Mrs OBumble wrote: »

Let Snowflake go part time, or even defer their studies for a couple of years, get a job and support the family in the meantime while the parents need it.

The fact you are calling them snowflake is so condescending and belittling. These children are going to have to drop out of College because their parents didn't manage their financial resource properly is ridiculous.

So OPs children should drop out of college to work a minimum wage job at around €17k per year when if they finished college they would probably be making around €28-40k per year. OPs priority should be to get this children through College and get them into highly paid employment

Mrs OBumble wrote: »

And 40 hours of lectures a week. From 9am - 5pm solid every day? Yeah, right, that happens.

When was the last time you were in College? Because a lot of degrees are in fact 40 hours. Medicine, Engineering, Psychotherapy, Nursing if they are on placement, some of the science ones are about 30 hours a week when you have a ton of labs.

You seem quite of touch with College in 2017

Mrs OBumble wrote: »

I would assume that the wife's job is what is putting food on the table and the lights on. If not, then they'd have been in trouble long before now

So you are making assumptions of that wife is hard working straight off the beat, but the children are all lazy... That is a serious double standard, which you don't seem to be bothered with. It is possible that the wife is doing nothing and not in employment if they can't make any mortgage payment

Nervous Wreck

chisel1 wrote: »

I have arranged to pay this month for him. But not till about the 27th, passed the due date of 17th.

FYI, the payment isn't "missed" until it's over 30 days late so this instance will not affect ICB.

murphaph

eeguy wrote: »

Not many 17 or 18 year olds would have 3k+ a year in fees plus living expenses. No one in my family ever has at any rate.

The kids might have to look at the bigger picture for a while. Their old man has just had a heart attack. A year out from college, working to clear their father's debts and get him mortgage free so he can go on disability and recover without the stress bringing on another, possibly fatal heart attack.

El Tarangu

Op - sorry to hear about your friend.

Any possibility that he could take in a lodger? Tax free up to 10 or 12k AFAIR - it would only need to be for a few months.

Mrs OBumble

newacc2015 wrote: »

The fact you are calling them snowflake is so condescending and belittling. These children are going to have to drop out of College because their parents didn't manage their financial resource properly is ridiculous.

So OPs children should drop out of college to work a minimum wage job at around €17k per year when if they finished college they would probably be making around €28-40k per year. OPs priority should be to get this children through College and get them into highly paid employment

.....

So you are making assumptions of that wife is hard working straight off the beat, but the children are all lazy... That is a serious double standard, which you don't seem to be bothered with. It is possible that the wife is doing nothing and not in employment if they can't make any mortgage payment

Nope. The kids may be being selfish, valuing their own education (which they can continue later) over their parents health. We don't teally have enough information to know if this is true or noy - but the whole point of a discussion forum is to talk about alternatives like this.

No one is entitled to have the bank of mammy and daddy support them once they've reached 18.

padd b1975

Arrange meetings ASAP with all creditors in order of importance and explain the situation informing them that you'll be engaging with MABS as a matter of necessity -mortgage lender first obviously, credit card is unsecured debt so they're least important. Don't fall into the trap of making promises to pay that you can't keep.

Make an appointment with MABS and be totally honest with them also, they will engage on your friends behalf.

Best of luck.

cruizer101

Mrs OBumble wrote: »

Dad's had a heart attack, could not keep his business going - and still expected to support Snowflake through college? Not in my world.

How do you know the kids aren't already working, also do you really think calling them Snowflake when you know nothing of their circumstances adds any strength to the argument.

Mrs OBumble wrote: »

And 40 hours of lectures a week. From 9am - 5pm solid every day? Yeah, right, that happens.

Yes it does happen, in first year engineering I had 9-6 3 days a week, 10-6 1 day and 9-5 one day, 1 hr lunch each day, plus easily another days work outside that. Possibly enough free time to hold down job which would fund travel and general college expenses but nowhere near enough to pay fee and a mortgage on top

BoatMad

Avatar MIA wrote: »

Not gospel, but as long as paid within the month my understanding is that it wont count as a missed payment and be reported to the ICB.

you are only in arrears after 90 days , only then is there a risk of ICB

nor would I worry too much about that , he has far bigger things to worry about

the key is to engage with the lenders , whatever he does , dont just avoid communication

Kalimah

cruizer101 wrote: »

How do you know the kids aren't already working, also do you really think calling them Snowflake when you know nothing of their circumstances adds any strength to the argument.


Yes it does happen, in first year engineering I had 9-6 3 days a week, 10-6 1 day and 9-5 one day, 1 hr lunch each day, plus easily another days work outside that. Possibly enough free time to hold down job which would fund travel and general college expenses but nowhere near enough to pay fee and a mortgage on top

I'd concur with this. My own son had exactly the same hours in his engineering course. He did a bit of part time work throughout his college years but it was really only during the summer, and then only one of the summers. There was very little work for students from 2008.
I'd have cut off my right hand sooner than see any of mine drop out due to money worries.