# AIB tough to deal with?



## French (26 Jun 2014)

Hi guys,

I moved abroad recently and am unlikely to return for many years.
I have two trackers with AIB - yes very Lucky - and would like to reduce the payments on them somehow (Gap between rent and payment is 1500 per month). The bank have simply told me that no-one will talk to me and that there is no appeals process. Clearly making up 1500 from a previous arrangement is unplanned. 

Is that it? Should I just have to accept it?

What happens if I decide not to send the funds back to Ireland?

I should add that I intend to pay all my debts and that moving abroad was a career decision that is not related to debt issues.


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## Brendan Burgess (26 Jun 2014)

Hi French

Why would AIB reduce the payments on loss making trackers on investment properties? 

It would make very little sense to the them. 

Are they in positive equity? Can you sell them and pay off the mortgages? 

Or maybe sell one, and hold onto the other?

Have you other assets to dispose of which would allow you to meet the repayments and so keep the trackers.

Brendan


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## 44brendan (26 Jun 2014)

The approach taken by Brendan assumes that you have an ability to repay these trackers. If that is the case then naturally AIB will expect that you honour your agreement. However, if you have problems in meeting the shortfall and/or are in negative equity, then you are entitled to make representations to the Bank. i.e. some payment is better to them than no payment. If you complete a SFS and send this on to them outlining the rationale for the shortfall they will need to address this. If the properties are in positive equity you will need to avoid any possibility of re-posession. However then as brendan says you need to consider a voluntary sale of at least one of the properties. If they are in negative equity the bank will have little option but to play ball with you.


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## French (26 Jun 2014)

Hi guys,

In short, both are in negative equity and so little point in me simply selling them and carrying an unsecured loan for 10years.

I was thinking more along the lines of bank taking a rent sweep and I would add on some more. Market would allow one to break even in four years - then I would sell. The other may never get into the black and I would have to foot the bills here. My earnings are fine but paying off full interest and principle leaves me with no savings and the conversation with the bank is simply too one way. 

I have completed a SFS and it was identical to last year. This year, they decided that I was worth making full payments.

From my side I am happy to exchange the tracker or look into other ideas but the bank has simply refused me access. Very frustrating.


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## Gerry Canning (27 Jun 2014)

French said:


> Hi guys,
> 
> In short, both are in negative equity and so little point in me simply selling them and carrying an unsecured loan for 10years.
> 
> ...


...........
From your post It looks like Mr Aib has not thought this out.
1. You are paying.
2. You are in negative equity.
3. You are outside of Ireland.
4. You are prepared to take a long view.

You say {leaves me with no savings} . That tells me and maybe it showedon the SFS that you can afford principle + interest.
If so AIB are well entitled to not give you leeway.

But pragmatically I think they should.
Suggest re-write to them and offer them a compromise eg pay 90% and assure them on market improvement you will readily sell property.That means that in 4 years they may be rid of one Tracker. 
So on a (longer) view AIb get a better option.

The alternative is to keep sending what you can? Remember it is AIB not you that is in negative equity!


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## French (27 Jun 2014)

Thanks Gerry Canning et al.

I'll hopefully have some luck getting through to them in the coming weeks. 

One final question, would not paying my mortgage next month get their attention or torpedo my tracker (or both). Up to now, I have always played fair with the bank.

thanks,


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## Gerry Canning (27 Jun 2014)

Always play fair, (it is good for the soul!)

I caanot see them {torpeding} your tracker.

If you find you cannot pay it all , so be it. 
Pay what you can and write to them outlining clearly your views and ask for their advice. Keep copies of everything
In other words stay fair .


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