Hi all,,
First of all I must mention that I have posted a few times so forgive me for repeating myself. Circumstances have changed with my wife getting a job in civil service on a full-time basis and while that is good news it costs us money for the first few years because of additional childcare. However, because of other costs dropping off it nets out the same.
At the moment I have contacted two PIPs on my case, some 1 year ago when I was advised I didn’t have sufficient means to make an offer to the creditors under a PIA and that bankruptcy would mean the loss of the home as I didn’t have a concrete agreement with the lender long-term. I contacted PIPs again this month and the same advice was given which more or less says to pay the mortgage as much as we can and see what happens with the other debt. These financial struggles started in 2009 when my wife lost her job so we are at this 6 years. I am tolerant enough because I am a big boy but there seems to be no end to this at all.
Both of us will be working in the civil service in a financial position so bankruptcy could be a problem and we really don’t want to lose the home especially given that I think the mortgage can be maintained long-term (it is a tracker and my gross wages will increase almost 100% over the next 7 years and so too will my wife and at the same time our childcare costs will half).
Income position
I spoke to BDO and they agree that my ‘standard or acceptable’ living expenses are €3,300 per month.
Our salaries are €3,640 per month and child benefit is €405.
I am 37, my wife is 38 and we have three children under 10.
Based on these numbers we can pay €742 towards our home loan which is exactly what we are doing. The problem with any PIA is that they do not count child benefit as income so in their numbers we have only €337 towards our home loan which is unsustainable and isn’t enough also to enter a PIA and offer something for the creditors.
Therefore it seems that we have enough money to pay our home mortgage (currently) but not enough to go into a PIA and sort out the residual debt etc. It seems like a bizarre set of circumstances.
Debt position
Home, value €175k, debt €275k (Joint mortgage, a tracker originally with BOS, now with Lone-Star with Start managing it). We pay reduced payments of €700 per month which is marginally chipping away at the capital. We have no arrears and I have personally written to Start seeking a partial write-off, partial split mortgage with the balance going on capital and interest payments. They rejected that and asked for us to maintain the €700 per month reduced payments.
Rental 1, value €120k, debt €195k (Wife mortgage, a tracker with AIB). We are paying nothing towards this and have partially agreed to voluntary sale on the basis that we pay €130 per month for 6 years against the residual debt subject to a certain price being met. AIB have been a dream to deal with and while it is rented we are not paying anything and merely using the rent to cover other costs for the moment (the income is not included in the above given it is only temporary). We are hoping to have a few grand together to pay to AIB on closure and then work on the reducing the €130 per month agreement down to take effect of the lump sum.
Rental 2, value €50k, debt €145k (My mortgage, two trackers with BOS). This place has been vacant for 8 months or so and the debt is high as it includes an equity release of €30k or so. It is a 3 bed apartment and I have made a proposal to BOS to sell it and pay €50 per month off the arrears for 6 years. They are having none of that and have written to me asking would I agree to a voluntary sale on the terms that if I pay them €25,000 they will put the balance aside and I can pay same down over the years. I have 1 month to get back to them on this but it doesn’t seem like a deal as such so it is likely I wont sign and they will appoint a receiver.
Rental 3, value €20k, debt €0 (This was purchased from the equity release mentioned above and is a place in Bulgaria). I actually have this up for sale for €26k but no takers because of the high management fees (apparently). Plan is for me to sell this and use the funds to cut a deal with BOS on the residual debt referred to above but it could be a long time before anything moves.
Other than the tale of woe above I owe €7,700 with AIB credit card and my wife owes €11,000 with them also. Mine went to Intrum Justitia who have been a nightmare to deal with and despite so many emails and letters they act like I haven’t co-operated at all and are extremely ignorant on the phone. I have asked Mabs to contact them and said I can no longer deal with them because of their manner and threatening a compliant to the Ombudsman over this. I can see why people really get depressed having to deal with the likes of them – it is actually very poor. The wife’s debt is still with AIB and she is sending a statement of means today to them.
Ambition
I just want rid of the properties, other than the home, and move on. I have been dealing with debt issues since 2008 when my wife lost her job and it grates on you. Our income now is 50% of what it was then but we have two more children so do the maths! The debt on the home at €275k is high but given my salary scale and the fact that childcare costs will only drop I think it is sustainable and I want to keep the home… it is a mugs game losing it and then being maybe not being able to apply for a mortgage until I am 45 when that house is probably going to be worth €210k and the tracker rate will be gone.
At present Mabs have done very little, BDO have said they can’t help and Cambridge McDuffy didn’t respond to my last emails to them (we have originally spoke about 18 months ago when they then also said they couldn’t help). I am thinking of meeting Phoenix Solutions in Portlaoise soon but forgive me for losing the appetite to do so here given that someone can only have so much motivation to deal with the aforementioned etc.
I should say we don’t have access to any money, no rich parents etc.
L
First of all I must mention that I have posted a few times so forgive me for repeating myself. Circumstances have changed with my wife getting a job in civil service on a full-time basis and while that is good news it costs us money for the first few years because of additional childcare. However, because of other costs dropping off it nets out the same.
At the moment I have contacted two PIPs on my case, some 1 year ago when I was advised I didn’t have sufficient means to make an offer to the creditors under a PIA and that bankruptcy would mean the loss of the home as I didn’t have a concrete agreement with the lender long-term. I contacted PIPs again this month and the same advice was given which more or less says to pay the mortgage as much as we can and see what happens with the other debt. These financial struggles started in 2009 when my wife lost her job so we are at this 6 years. I am tolerant enough because I am a big boy but there seems to be no end to this at all.
Both of us will be working in the civil service in a financial position so bankruptcy could be a problem and we really don’t want to lose the home especially given that I think the mortgage can be maintained long-term (it is a tracker and my gross wages will increase almost 100% over the next 7 years and so too will my wife and at the same time our childcare costs will half).
Income position
I spoke to BDO and they agree that my ‘standard or acceptable’ living expenses are €3,300 per month.
Our salaries are €3,640 per month and child benefit is €405.
I am 37, my wife is 38 and we have three children under 10.
Based on these numbers we can pay €742 towards our home loan which is exactly what we are doing. The problem with any PIA is that they do not count child benefit as income so in their numbers we have only €337 towards our home loan which is unsustainable and isn’t enough also to enter a PIA and offer something for the creditors.
Therefore it seems that we have enough money to pay our home mortgage (currently) but not enough to go into a PIA and sort out the residual debt etc. It seems like a bizarre set of circumstances.
Debt position
Home, value €175k, debt €275k (Joint mortgage, a tracker originally with BOS, now with Lone-Star with Start managing it). We pay reduced payments of €700 per month which is marginally chipping away at the capital. We have no arrears and I have personally written to Start seeking a partial write-off, partial split mortgage with the balance going on capital and interest payments. They rejected that and asked for us to maintain the €700 per month reduced payments.
Rental 1, value €120k, debt €195k (Wife mortgage, a tracker with AIB). We are paying nothing towards this and have partially agreed to voluntary sale on the basis that we pay €130 per month for 6 years against the residual debt subject to a certain price being met. AIB have been a dream to deal with and while it is rented we are not paying anything and merely using the rent to cover other costs for the moment (the income is not included in the above given it is only temporary). We are hoping to have a few grand together to pay to AIB on closure and then work on the reducing the €130 per month agreement down to take effect of the lump sum.
Rental 2, value €50k, debt €145k (My mortgage, two trackers with BOS). This place has been vacant for 8 months or so and the debt is high as it includes an equity release of €30k or so. It is a 3 bed apartment and I have made a proposal to BOS to sell it and pay €50 per month off the arrears for 6 years. They are having none of that and have written to me asking would I agree to a voluntary sale on the terms that if I pay them €25,000 they will put the balance aside and I can pay same down over the years. I have 1 month to get back to them on this but it doesn’t seem like a deal as such so it is likely I wont sign and they will appoint a receiver.
Rental 3, value €20k, debt €0 (This was purchased from the equity release mentioned above and is a place in Bulgaria). I actually have this up for sale for €26k but no takers because of the high management fees (apparently). Plan is for me to sell this and use the funds to cut a deal with BOS on the residual debt referred to above but it could be a long time before anything moves.
Other than the tale of woe above I owe €7,700 with AIB credit card and my wife owes €11,000 with them also. Mine went to Intrum Justitia who have been a nightmare to deal with and despite so many emails and letters they act like I haven’t co-operated at all and are extremely ignorant on the phone. I have asked Mabs to contact them and said I can no longer deal with them because of their manner and threatening a compliant to the Ombudsman over this. I can see why people really get depressed having to deal with the likes of them – it is actually very poor. The wife’s debt is still with AIB and she is sending a statement of means today to them.
Ambition
I just want rid of the properties, other than the home, and move on. I have been dealing with debt issues since 2008 when my wife lost her job and it grates on you. Our income now is 50% of what it was then but we have two more children so do the maths! The debt on the home at €275k is high but given my salary scale and the fact that childcare costs will only drop I think it is sustainable and I want to keep the home… it is a mugs game losing it and then being maybe not being able to apply for a mortgage until I am 45 when that house is probably going to be worth €210k and the tracker rate will be gone.
At present Mabs have done very little, BDO have said they can’t help and Cambridge McDuffy didn’t respond to my last emails to them (we have originally spoke about 18 months ago when they then also said they couldn’t help). I am thinking of meeting Phoenix Solutions in Portlaoise soon but forgive me for losing the appetite to do so here given that someone can only have so much motivation to deal with the aforementioned etc.
I should say we don’t have access to any money, no rich parents etc.
L