Mortgage arrears - promise to pay

Dev84

Hi looking for some help here. Has anyone ever heard of the above? Have looked on google and no info there.

Basically i have entered into a formal agreenment with my lender to overpay my mortgage by 500 per month in order to clear the arrears over 18 months. I am happy with this solution and thought they were too. I have made the first few payments off this. I havent missed a mortgage payment in 12 months.

Yesterday evening i was served with a court summons for repossession next march in the district court.

So my arrears are currently at 8000 and i am sticking to the terms of the promise to pay agreenment.

Any help or previous experiences would be great.

ted1

Best find a solicitor who specialises in the area.

punisher5112

Bring all correspondents and maybe also consider getting a solicitor.

I would write to the bank and ask why has the terms changed etc....


You could also call citizens info and ask to speak to a solicitor as they do have access at times.

ted1

Best find a solicitor who specialises in the area.

Dev84

ted1 wrote: »

Best find a solicitor who specialises in the area.

Thanks ted. I cant really afford one as i am trying my best to clear the arrears. I figure by March with a bit of luck ill have the arrears down to around 4500. I will contact mabs/abhaile monday.

I have rang the bank today but its with their legal dept. Who arent there until monday.

I also mailed the solicitor and stated that im in a formal arrangment with my lender.

From what i can see the lender issued the repossession instruction to the solicitor before i entered intothe arrangement to over pay.

jimmycrackcorm

Dev84 wrote: »

Thanks ted. I cant really afford one as i am trying my best to clear the arrears. I figure by March with a bit of luck ill have the arrears down to around 4500. I will contact mabs/abhaile monday.

I have rang the bank today but its with their legal dept. Who arent there until monday.

I also mailed the solicitor and stated that im in a formal arrangment with my lender.

From what i can see the lender issued the repossession instruction to the solicitor before i entered intothe arrangement to over pay.

Wait until Monday. If you've been sticking to the agreement then their legal dept will know it's a waste of time following up with the summons.

I wouldn't lose any sleep over this. No judge is going to countermand a working agreement made by the bank.

Dev84

jimmycrackcorm wrote: »

Wait until Monday. If you've been sticking to the agreement then their legal dept will know it's a waste of time following up with the summons.

I wouldn't lose any sleep over this. No judge is going to countermand a working agreement made by the bank.

Thanks. Im physically sick at the thought of losing my home. I have 2 kids, one severely disabled and my wife. Im active in trying to pay down the arrears. It wont be an issue. I just need about 6 months.

Its going aroud in my head that even if i pay the arrears and get the mortgage back on track they may still evict us.

Terrified that I will see my family on the street.

punisher5112

Dev84 wrote: »

Thanks. Im physically sick at the thought of losing my home. I have 2 kids, one severely disabled and my wife. Im active in trying to pay down the arrears. It wont be an issue. I just need about 6 months.

Its going aroud in my head that even if i pay the arrears and get the mortgage back on track they may still evict us.

Terrified that I will see my family on the street.

If you weren't paying and not staying in contact they would eventually get you out but as you have been fixing the issue and actually paying as above no judge would give an order.

Blazer

I wouldnt' worry about it mate..you're keeping on track and its over a small amount in the balance of things.
Make absolutely sure you get a solicitor as advised above. You need to ensure that the bank have this sorted out and are following what ye agreed to.

Dev84

Blazer wrote: »

I wouldnt' worry about it mate..you're keeping on track and its over a small amount in the balance of things.
Make absolutely sure you get a solicitor as advised above. You need to ensure that the bank have this sorted out and are following what ye agreed to.

Thanks. I have equity on the property which i think is why they may be forcing my hand. 180000 of a mortgage left. Im only 33 so will be able to service it.

Just shocked to be served summons on my door step last night.A bit surreal actually. The server was laughing and joking. "Ah at least your not in negativity equity". "A nice corner site too".

Really Interested

Dev84 wrote: »

Hi looking for some help here. Has anyone ever heard of the above? Have looked on google and no info there.

Basically i have entered into a formal agreenment with my lender to overpay my mortgage by 500 per month in order to clear the arrears over 18 months. I am happy with this solution and thought they were too. I have made the first few payments off this. I havent missed a mortgage payment in 12 months.

Yesterday evening i was served with a court summons for repossession next march in the district court.

So my arrears are currently at 8000 and i am sticking to the terms of the promise to pay agreenment.

Any help or previous experiences would be great.

Are you sure it is District Court?

Dev84

Really Interested wrote: »

Are you sure it is District Court?

100 per cent. Naas.

Really Interested

Dev84 wrote: »

100 per cent. Naas.

And it is defo repossession?

Dev84

Really Interested wrote: »

And it is defo repossession?

Yes. Served me with deeds and mortgage contract etc.

Arrears suport until confirmed on phone that they can see the arrangement in place to overpay until 2019 until arrears are clear. I even remember when putting the agreenment in place a guy from ptsb legal dept told me that if i stuck to the agreenent this wouldnt go any further.

Im hoping its a miscommunication betweem them and their solicitor.

dubrov

It's clearly a mistake and they haven't processed the new agreement.
If you are sticking to the terms they can't repossess.
Just ring the bank on Monday.

I wouldn't worry about repossession.
Banks are failing to repossess houses where payments haven't been made in years.

Really Interested

Dev84 wrote: »

Yes. Served me with deeds and mortgage contract etc.

Arrears suport until confirmed on phone that they can see the arrangement in place to overpay until 2019 until arrears are clear. I even remember when putting the agreenment in place a guy from ptsb legal dept told me that if i stuck to the agreenent this wouldnt go any further.

Im hoping its a miscommunication betweem them and their solicitor.

But the District Court does not have power to order possession. So I can not understand how you have been served District Court proceedings.

Dev84

dubrov wrote: »

It's clearly a mistake and they haven't processed the new agreement.
If you are sticking to the terms they can't repossess.
Just ring the bank on Monday.

I wouldn't worry about repossession.
Banks are failing to repossess houses where payments haven't been made in years.

Thanks for all the comments. I know i cant get legal advice here which is a good thing but piece of mind is important also.

Really Interested

dubrov wrote: »

It's clearly a mistake and they haven't processed the new agreement.
If you are sticking to the terms they can't repossess.
Just ring the bank on Monday.

I wouldn't worry about repossession.
Banks are failing to repossess houses where payments haven't been made in years.

In cases of no payments I can assure you the courts are ordering possession, I have seen many such order granted.

lukesmom

It definitely sounds like a miscommunication on their part. Try not to worry too much about it. You know that you have stuck to the plan that was agreed. They seem to have changed but like I said I'm sure it's a miscommunication. Even if it goes to court, the judge will rule in your favour based on the agreement.

Dev84

Really Interested wrote: »

But the District Court does not have power to order possession. So I can not understand how you have been served District Court proceedings.

Google it. Plenty of district courts seem to be doing it.

Really Interested

Dev84 wrote: »

Google it. Plenty of district courts seem to be doing it.

Can you give me one link to a District Court giving possession.

Dev84

Really Interested wrote: »

Can you give me one link to a District Court giving possession.

Sorry my bad. Its the circuit court.

Really Interested

Dev84 wrote: »

Sorry my bad. Its the circuit court.

That’s why I asked, no use turning up in wrong place.

Make sure you ring the solicitor for bank, on Monday. If they say matter is going ahead in March, inform them that you have agreed to pay x and have done so. Have copy of bank statements with you so you can give dates etc. Inform the bank that if they go ahead with matter you will have no option but to instruct solicitor and you will seek a order from County Reg or Judge to get the bank to pay your costs.

Then go to solicitor with all your paperwork and ask them to look after the matter, make sure you pay payments from now till March and keep record of same.

sameoldsameold

Hi,
Not a legal or mortgage expert, but have been in mortgage arrears and have come out the other side, so I just wanted to offer a bit of support.We were at the end of our tether, we were worried sick, thoughts of being homeless. We were in mortgage arrears much bigger than what you have said, we worked with the bank for a few years, paying what we could. When we were finally in a position to repay full monthly amount (retraining, higher quals, extra work etc) we applied for an ara it was refused and received a letter to say that basically we had only option of selling up to repay the debt. We got on to MABS who while we didn't need lots of help, they acted on our behalf, helped us, made us feel a whole lot better. Anyway 18 months on, we have a new mortgage agreement, no longer in debt, as the arrears were capitalized and in a much better position, we are still paying our full debt just over a different period. Please call MABS, it's a free service. We were told if you are paying, it is very unlikely a judge will put you out of your home. I have been here, it is stressful, worrying, depressing and even life threatening, but there is light at the end of the tunnel. xx

Dev84

Really Interested wrote: »

That’s why I asked, no use turning up in wrong place.

Make sure you ring the solicitor for bank, on Monday. If they say matter is going ahead in March, inform them that you have agreed to pay x and have done so. Have copy of bank statements with you so you can give dates etc. Inform the bank that if they go ahead with matter you will have no option but to instruct solicitor and you will seek a order from County Reg or Judge to get the bank to pay your costs.

Then go to solicitor with all your paperwork and ask them to look after the matter, make sure you pay payments from now till March and keep record of same.

Thanks
Will it help if i overpay or pay all arrears off by march?

Really Interested

Dev84 wrote: »

Thanks
Will it help if i overpay or pay all arrears off by march?

That would be giving legal advice. But of course having no arrears usually would not hurt your argument.

Sleeper12

Obviously get professional advice on this but Your arrears are only 8k & you are paying an extra 500 per month. Your lender is going to look stupid in court imo

Really Interested

Sleeper12 wrote: »

Obviously get professional advice on this but Your arrears are only 8k & you are paying an extra 500 per month. Your lender is going to look stupid in court imo

I would agree, and many judges happy to give a bank a little costs kicking.

Dev84

I really appreciate the advice folks. Might sleep a little easier tonight. The papers i was served with just dont tell the full story. My arrears have not risen since December 2016 yet the bank is saying that i havent tried to communicate with them.
I have filled out 2 sfs this year alone. Each time ptsb came back and said they couldnt offer an alternative payment option as the monthly payments were affordable.

Looking at some of the dates on the papers they were prepared before i entered into this arrangement.

The solicitors have always told me that until i reach an agreenment woth the bank legal proceedings will continue.

dubrov

Really Interested wrote: »

In cases of no payments I can assure you the courts are ordering possession, I have seen many such order granted.

I know orders have been granted but generally they are for properties where there has been no engagement from the borrower at all.

Have you seen many orders granted in situations where the borrower engages, pays nothing for a year and starts paying about 1/2 months before the case is in court?

sameoldsameold

Please contact MABS, you will have access to professional and legal advice for free, the last thing you need to is another legal bill. On the first communication with the bank, we had misinterpreted the information although it clearly said, they were issuing legal proceedings and that we must sell your home. The MABS representative told us the first court date is always adjourned. Please as one who has lived this, there is a way.......

MABS 0761 07 2000

sameoldsameold

Dev84 wrote: »

Each time ptsb came back and said they couldnt offer an alternative payment option as the monthly payments were affordable.

we appleaded this, with the help of MABS, we have now no arrears, they offered us a ara.

Really Interested

dubrov wrote: »

I know orders have been granted but generally they are for properties where there has been no engagement from the borrower at all.

Have you seen many orders granted in situations where the borrower engages, pays nothing for a year and starts paying about 1/2 months before the case is in court?

I was answering a statement that orders are not granted where no payments for years.

Of course judges do not like to order possession unless they have no other option.

To answer your question I have seen judges order possession even in cases of payments been made but such cases are where the amount owed is very large and payments are very small.

Dev84

sameoldsameold wrote: »

Please contact MABS, you will have access to professional and legal advice for free, the last thing you need to is another legal bill. On the first communication with the bank, we had misinterpreted the information although it clearly said, they were issuing legal proceedings and that we must sell your home. The MABS representative told us the first court date is always adjourned. Please as one who has lived this, there is a way.......

MABS 0761 07 2000

Thanks very much. Filing out my sfs in branch the girl said i didnt need to go to mabs as it hadnt reached court. Obviousy it has now.

Hopefully it'll be clearer Monday and it may be a mistake. Not holding my breath though.

Really Interested

Dev84 wrote: »

Thanks very much. Filing out my sfs in branch the girl said i didnt need to go to mabs as it hadnt reached court. Obviousy it has now.

Hopefully it'll be clearer Monday and it may be a mistake. Not holding my breath though.

Never never never take such advice from the bank or their solicitor. Also if the solicitor says it will be struck out in March make sure you turn up anyway to make sure the matter is struck out.

Dev84

Really Interested wrote: »

Never never never take such advice from the bank or their solicitor. Also if the solicitor says it will be struck out in March make sure you turn up anyway to make sure the matter is struck out.

I will defo be there.it says on the letter from the solicitor that the first court date in march will be adjourned.

I will be going and putting my case forward.

Really Interested

Dev84 wrote: »

I will defo be there.it says on the letter from the solicitor that the first court date in march will be adjourned.

I will be going and putting my case forward.

So the letter says the matter will be adjourned?

When will your arrears be cleared?

sameoldsameold

we had engaged with the bank, they assured us it would be ok as long as we paid something and engaged. We retrained and qualified in new positions, that we were in a position to pay the full mortgage and more. Then the bank said, actually "computer says no", we applied for ara, we were turned down for the exact same reasons as you state. We contacted MABS, they said that there was a misunderstanding of the refusal, appealed it, paid new amount for agreed term, then new ara was granted (just a couple of weeks ago). I cannot stress enough to go to MABS, it may not be as bad as you think and they will represent you, act as a point of contact. As I said previously, our debt was a lot more than yours is. We were not sleeping, we were pretending to the world everything was ok when it wasn't, the pressure was awful..............but we are here, out the other side...........please please please try not to worry too much contact MABS.

Dev84

Really Interested wrote: »

So the letter says the matter will be adjourned?

When will your arrears be cleared?

April 2019 they will be fully clear with the current agreenment with the bank. I can see that on my online mortgage account as its clearly displayed.
My son recieves a domiciliary care allownce as he is severely disabled. We will start putting this towards the 500 over payment which will bring it to 810 a month that we will be paying off the arrears as well as the 900 toward the regular mortgage payment. So we will be paying 1700 per month.
My wife is also in receipt of carers allowance. We will pay 100 per week from this also.

Sorry for being so long winded.

All in all by March the arrears will be down to 4370.
Keep paying it that way and will be cleared by june. We will recieve a respite care grant in june of 1750. We will use this to clear the balance.

I know it sounds like we have loads of money from that but without receiving money for my disabled son we would be broke.

We havent always received that money. I am on a low enough income obviously for my wife to qualify for a carers payments.
Its my childrens home so i will literaly go without shoes on my feet to ensure we stay in it.

Really Interested

Dev84 wrote: »

April 2019 they will be fully clear with the current agreenment with the bank. I can see that on my online mortgage account as its clearly displayed.
My son recieves a domiciliary care allownce as he is severely disabled. We will start putting this towards the 500 over payment which will bring it to 810 a month that we will be paying off the arrears as well as the 900 toward the regular mortgage payment. So we will be paying 1700 per month.
My wife is also in receipt of carers allowance. We will pay 100 per week from this also.

Sorry for being so long winded.

All in all by March the arrears will be down to 4370.
Keep paying it that way and will be cleared by june. We will recieve a respite care grant in june of 1750. We will use this to clear the balance.

I know it sounds like we have loads of money from that but without receiving money for my disabled son we would be broke.

We havent always received that money. I am on a low enough income obviously for my wife to qualify for a carers payments.
Its my childrens home so i will literaly go without shoes on my feet to ensure we stay in it.

Go to MABS. My own guess the proceedings will be adjourned each time to make sure you keep on top of payments.

If I was a betting person I would say there is little chance a court would order possession as long as you keep paying arrears.

Bigus

It looks like you started overpaying just at the right time , and are therefore in a very safe position and sleep well over the weekend.
Simply a miss communication with the legal department as you are effectively 100% compliant with the banks request.

jimmycrackcorm

Dev84 wrote: »

We will start putting this towards the 500 over payment which will bring it to 810 a month that we will be paying off the arrears as well as the 900 toward the regular mortgage payment. So we will be paying 1700 per month.

As others have advised, talk to MABS before you do this as it might be better spent on your son.

Perhaps it is an option but again I can't see a judge ordering you to use it to pay back the arrears any quicker.

April 73

I just want to wish you good luck Dev84.
It does sound like a process was being followed in the bank in error as you have made an agreement with them. I just can't see the logic of making a repossession order in March over €4K arrears when you are overpaying by €500 a month.
Keep engaging with the bank, go to MABS as hearing their advice will be useful to reduce your anxiety, and having them in your corner can only help - and good luck.

padd b1975

Bigus wrote: »

It looks like you started overpaying just at the right time , and are therefore in a very safe position and sleep well over the weekend.
Simply a miss communication with the legal department as you are effectively 100% compliant with the banks request.

This.

If it does make it to court, I would guess the bank's legal team will be sent on their way with a flea in their ears by the judge for wasting the court's time.

Dev84

Hi folks
Just an update.

Rang the banks legal dept first thing this morning. I was assured that once I am meeting the promise to pay repayments they will direct their solicitor to seek an indefinite adjournament in March. The girl said that she will issue this to me in writing during the week. I asked what this meant and she said that once the repayments are being met there wont be another court date.

Piece of mind thank god but I was firm about having it in writing and the same letter be sent to their solicitor.

I will still contacting mabs tuesday morning.

Thanks for all of the advice and encouragement.

spaceHopper

Dev84 wrote: »

I will still contacting mabs tuesday morning.

Thanks for all of the advice and encouragement.

Good luck with everything, but careful, see what mabs say the banks don't have your best interest are heart and will stick the knife in.

It might be a good idea to write to who ever you finalized the overpayment schedule with, express your surprise and disappointment to receive their letter, you understood that you both and entered into an agreement and that you have kept your side of it. You are not happy with an indefinite adjournment and request that they withdraw the legal action in full. Copy their solicitor on the letter.

Bigus

Dev84 wrote: »

Hi folks
Just an update.

Rang the banks legal dept first thing this morning. I was assured that once I am meeting the promise to pay repayments they will direct their solicitor to seek an indefinite adjournament in March. The girl said that she will issue this to me in writing during the week. I asked what this meant and she said that once the repayments are being met there wont be another court date.

Piece of mind thank god but I was firm about having it in writing and the same letter be sent to their solicitor.

I will still contacting mabs tuesday morning.

Thanks for all of the advice and encouragement.

I'd be making an appearance in court representing myself without the cost of a solicitor ,
explain that you're fully compliant with the banks requests and ask for the matter to be struck out . Bring written proof of your agreement.

The reason you want the case STRUCK OUT, is you don't want the bank short circuiting the legal timeline if you run into difficulties in future. The bank can't punish you for standing up for yourself in court .
You may have to submit a minor form to the court in the meantime notifying that you are defending said action.
Good luck

Heres Johnny

Not qualified to speak legally but when I was an advisor (Not with a bank but in financial services) one of my clients got themselves in a bit of bother with the bank, very similar to you. I helped them as best I could.
They came to an arrangement and all parties were happy but they still received solicitors letters looking for full debt to be repaid every few months which causes distress. The bank explained it was a requirement to keep serving notice to repossess but action would not be taken if agreement was stuck to. A short while after an agreement to capitalise arrears was reached. Never received a letter after that.
I believe you have nothing to worry about except just keep making payments and moving in right direction with the debt.

Dev84

The bank have agreed that when the arrears are paid they will instruct solicitor to strike out the legal action.

They have also said that in March the case will be adjourned and there will be no need for me to appear. Not sure about this though.

Bigus

Dev84 wrote: »

The bank have agreed that when the arrears are paid they will instruct solicitor to strike out the legal action.

They have also said that in March the case will be adjourned and there will be no need for me to appear. Not sure about this though.

Get that in writing, if you're not making an appearance.

Dev84

Bigus wrote: »

Get that in writing, if you're not making an appearance.

Thanks. I fully intend on being there though. They are issuing it in writing via the solicitor.