# Pepper writing off the shortfall in a voluntary sale. Will we get another mortgage?



## parek2016 (5 Apr 2016)

OK, so I have a question that I can not seem to find any information on online.

We have recently negotiated an assisted voluntary sale option with a complete write off on the shortfall, we have not signed with the solicitors yet, but will be doing so in the coming weeks, but before we do this I want to know what happens after...

Current situation:
Mortgage: 300k
Arrears: 23k
House Valued: 200k


With securing the write down it means we do not have to go insolvent, which I thought was a good option, but with the assisted voluntary sale option, will I ever get a mortgage again?

If I went insolvent, I believe there is a 5 year period where I could not apply, but officially is there a period tied to the AVS option with the write down?


Our plan is to save as much as possible for the next 15-20 months, trying to get a deposit on a future mortgage, but am I wasting my time doing this, or is it at the banks discretion?

any help or advice would be amazing

Cheers


----------



## Jim Stafford (5 Apr 2016)

You should really see a Personal Insolvency Practitioner to receive full advice on all your options.

If you can afford to make reasonable mortgage payments on the market value of the house i.e. €200,000, you should be able to do a PIA and keep your house. A PIA could stretch out the mortgage term and reduce the interest rate etc to make the mortgage more affordable.

If you cannot afford reasonable payments on a mortgage of €200,000, it is likely that after paying market value rent elsewhere that it would be a very long time, if ever, before you could save up a deposit to buy a new house.

Jim Stafford


----------



## parek2016 (5 Apr 2016)

Hi Jim,

Thanks for taking the time to respond, to be honest I was trying to avoid this option, To give a bit more background - The property we currently have mortgaged is in Navan, Great idea at the time but we are both from the Dublin area originally and all our family and friends are out there.

The reason I'm asking what is the procedure on getting another mortgage after assisted sale with full write down is that my parents have land with full planning permission for a 3 bed detached already in place - Having received quotes for build, it would (someday) cost us 130k to build a family home that is currently valued at 320k off the plans. Both my wife and I are on decent salaries and originally all we wanted to do was keep our existing home, but the mortgage provider we have currently is not one of the main irish providers - Its with Pepper and they were unwilling to offer anything that would work out for us. We made proposal after proposal and all declined, eventually they agreed to the full write down.


Thanks again 

Paul


----------



## Brendan Burgess (8 Apr 2016)

You want to get rid of the house.
The lender will write off the shortfall.
You are on good salaries. 

It seems like a great opportunity to get rid of it and start again. 

I can't see you getting a mortgage for at least 5 years. 

But it's possible that if you build up a good savings record, there might be a sub-prime lender who would lend you the money earlier.

Brendan


----------



## Banjaxed (9 Apr 2016)

May I ask if PIAs is done ... And just say poster above went down this route .. And they managed to keep their house.  Wouldn't there be a judgement put on the house.   In which case the poster is always ever after looking over their shoulders and the nightmare never ends ?


----------



## Brendan Burgess (9 Apr 2016)

No.  A "judgement mortgage" is put on a house only for unsecured debt for which the creditor has got a judgement from the court. 

They would be written off or down as part of the PIA.

An ordinary mortgage is already "on the house". 

If the OP wanted to keep his house, then a PIA would be worth considering. 

Brendan


----------



## Joe_90 (9 Apr 2016)

I'm intrigued, having clients dealing with pepper.

You and your wife are on decent salaries?  How much?  
What is monthly repayment? Tracker I presume?

Loan €300k
Market value €200k

Pepper are willing to let the €300k go for €200k.  I know that they did not pay €200k for the loan but why roll over for only the market value.  Is there an issue with their security?


----------



## moneybox (9 Apr 2016)

Why cant you pay your mortgage if you and your wife are on good salaries? Your arrears are not that bad compared to others.


----------



## valleyview (14 Oct 2016)

Joe_90 said:


> I'm intrigued, having clients dealing with pepper.
> 
> You and your wife are on decent salaries?  How much?
> What is monthly repayment? Tracker I presume?
> ...



Hello,

You say you have clients dealing with Pepper, Can I ask do you know what sort of percentage of overall debt are pepper willing to settle for. We are trying to pay off a 250K debt they took over from Irish Nationwide in order to keep our family farm. We want to make them an offer but need to know whats a realistic amount to aim for? We have no money but will have to sell some land to pay them.

Thank you in advance


----------



## Codogly (14 Oct 2016)

That sounds to good to be true ... Pepper prepared to w/off 100k on a mortgage to a double income couple who have good jobs...?
Anything I read up to now suggest that lenders are very slow to w/off mortgage debt even when its a rock bottom tracker rate.


----------



## Ihana (14 Oct 2016)

parek2016 said:


> Hi...... for a 3 bed detached already in place - Having received quotes for build, it would (someday) cost us 130k to build a family home that is currently valued at 320k off the plans.




130k is not a realistic budget for a self build 3 bedroom detached house


----------

