Key Post If you can't meet your mortgage payments...

The MABS booklet [broken link removed] is a good place to start.

Also read the Irish Bankers Federation (PDF) which is summarised below

The Financial Regulator has issued a [broken link removed] (PDF) effective February 2009

Don’t be embarrassed about being in arrears. It’s far more common that you expect.

Speak to your lender as soon as you know that you might be in trouble. If you have been avoiding them, call them now and arrange to meet them.

If they reschedule your debt, you will be able to maintain your credit rating.

Face up to the fact that you may have to cut back on some luxuries.

There is no shame in saying: “I can’t afford it”. People will actually respect you more for your honesty.

Don’t panic if you are threatened with legal proceedings. Banks only use them as a last resort. If you ignore them, you will lose your home. If you deal with them and the lender is unreasonable, no judge will give them an order to repossess your home.

Don’t be tempted to move to a sub-prime lender. There should be no need and it will increase the chances of you losing your home.

Do check the statements from your lender to make sure that the repayments and arrears have been calculated correctly.

Summary of Financial Regulator’s Code on Mortgage Arrears

1)This applies to home loans only – not to residential property loans

2)Mortgage lenders must adopt flexible procedures for the handling of arrears cases. Such procedures must be aimed at assisting the borrower as far as possible in his/her particular circumstances.

3) all viable options open to the borrower must be examined during which consideration must be given to his/her repayment capacity, previous payment history and any equity remaining in the property.

4) If a third repayment is missed, the lender may issue a formal demand. With the issue of a formal demand for either the full amount due on foot of the mortgage or for possession of the property, the borrower must have been advised in writing of the following:
i. the total amount of arrears;
ii. where applicable, any excess interest (expressed as a rate or an amount) that may continue to be charged and the basis on which this will be charged; and/ or any charges that may be payable (the basis for which will have been detailed in the original contract documentation);
iii. advice regarding the consequences of failing to respond - namely, the potential for legal proceedings and loss of his/her property - together with an estimate of the costs to the borrower of such proceedings.

5) The lender must not seek repossession of the property until every reasonable effort
has been made to agree an alternative repayment schedule with the borrower or
his/her nominated representative. However, where it is clear that the borrower is
deliberately not engaging with the lender, or where other circumstances reasonably
justify, the lender may seek repossession in the absence of any engagement with
the borrower.


5) it must wait at least six months from the time arrears first arise before applying to the courts to commence enforcement of any legal action on repossession of a borrower’s primary residence. (Note that AIB and Bank of Ireland have agreed to a 12 month wait)

6) The lender must notify the borrower when it commences the enforcement

7) Lenders may distinguish between borrowers who are genuinely unable to pay – because of changed circumstances - and those who could pay some/all of the arrears but will not.

8) The lender must explore with the borrower one or more of the following alternative repayment measures:
• An arrangement on arrears could be entered into whereby the amount of
monthly repayment may be changed, as appropriate, to help address the
arrears situation.
• Deferring payment of all or part of the instalment repayment for a period might be appropriate where, for example, there is a temporary shortfall of income.
• Extending the term of the mortgage could be considered in the case of a
repayment loan - although this may not make a significant difference to the
monthly repayments.
• Changing the type of the mortgage might be appropriate if this could give rise to a reduction in the level of monthly mortgage outgoings (i.e., mortgage and related assurance payments).

• Capitalising the arrears and interest could arise where there is insufficient
capacity over the short term to clear the arrears but where repayment capacity exists to repay the capitalised balance over the remaining term of the mortgage.

9 ) The lender must continue to monitor the repayment arrangement. To this end, the borrower must be advised of a relevant contact point.

10) Where appropriate, the borrower must be made aware of other options such as trading down, voluntary sale or alternative refinancing through another lender.

11) The lender must inform the borrower that irrespective of how the property is repossessed and disposed of, the borrower will remain liable for the outstanding debt, including any accrued interest, charges, legal, selling and other related costs, if this is the case.

You should only sell your home as a very last resort and if you feel that you will not be able to afford your repayments over the longer term.

Banks have agreed to delay home repossions by 12 months.
From todays news on RTE


"Bank of Ireland and AIB have agreed to hold off on issuing repossession orders for those in arrears on their home loans for 12 months as part of the Government recapitalisation plan."

"It now seems the banks are offering not to pursue mortgage arrears for six months and have offered not to repossess homes until 12 months has elapsed, having regard to the distressed financial situation arising for many losing their jobs."

If you have missed some payments and then have come to some arrangments with your lender will you still be reported to the Irish Credit Bureau with resultant consequences

A Repossession Guide for Irish Homeowners

I wrote a repossession guide for people who may be in financial difficulty and going into arrears because of it.

it covers what you can do, what the bank must do (taking into consideration the new code of conduct for mortgage arrears brought out last week). Ways of keeping your house, what to do if you can't, legal implications, contact information for state agencies and contact info for banks collections teams etc.

if you know somebody that may need help forward it to them, email/print/post wherever you want, the main idea of this is to get it to people who need help.

http://www.mortgagebrokers.ie/blog/index.php/2009/02/18/a-repossession-guide-for-irish-homeowners/

Just wondering if people arranged their mortgage through Brokers would they have much contact with anyone in the lending institution. I have in mind the excellent advice that one should contact their lender if they have problems. If a person dealt direct with a person in say the bank it might be easier for contact to be made rather than if they arranged matters through a broker and if it was the latter who had all the contact with the bank/building sociee
ty