# mortgage arrears



## tailgunner (24 Sep 2011)

good morning .I am looking for advice re the following;

I bought an investment property 6 yrs agofor circa €100k.I owe approx €80k ish .Like many am finding it very very difficult  to meet mrtgage repayments of nearly €600 per month.I was left money in a will + my own savings and have now got €50k.Would the building society accept this sum as a final payment of loan ? and how would I go about it .Thank you in advance.


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## peteb (24 Sep 2011)

If you have 50k in the bank, how are you pleading hardship to make the repayments.  You can obviously comfortably do this? Why should the bank let you just clear at a reduced rate when you could quite obviously sell the property and repay the shortfall?


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## tailgunner (24 Sep 2011)

ouch.sorry to rattle your cage


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## peteb (24 Sep 2011)

you just seem like someone trying to shirk their contracted reponsibilities.  You took out the loan, why do you think you should be allowed to keep your property at a reduced settlement when you can in actuality afford to repay it.  Its a bit of an oxymoron to say I'm finding it difficult to repay €600 when you then say you have €50k in savings.


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## tailgunner (24 Sep 2011)

thank you .anyone else  got any advice sans oxymorons please or shoulder chips


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## Khublei (24 Sep 2011)

It's nothing to do with shoulder chips, peteb was just saying what the bank will say. Theyre going to look at you a bit odd if you go in saying you can't pay the €600 when you have €50k. If it's an investment I'm guessing you're getting some rent. So why not use that to pay the mortgage using the €50k to make up any shortfall? 

It seems you just don't want to pay the price you agreed to pay as you now feel it's worth less. That's not really how it works.


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## horusd (25 Sep 2011)

Given that many banks have been bailed out by the taxpayer, you are effectively  looking for them (i.e your fellow citizens) to repay for you the differential between your bequest & savings and your contracted debt. A debt you freely entered into for investment,  and can fully  service. This will include people in genuine difficulty trying to keep a roof over their, and their children's heads, and making sacrifices to do that.

And even if it were not a burden on the taxpayer, someone else would be picking up your tab. Some people are in genuine difficulty with repayments on a family home, clearly you aren't in that predicament and should count yourself lucky.. I think you will find that most if not all right-thinking people find this objectionable, and that has nothing to do with chips on shoulders or oxymorons, just simple fairness.

 If the taxpayer* must* help people in genuine debt, I would rather it went to someone who could then keep their family home, not to property speculators trying backtrack on  a bad investment and make a saving like yourself. You may be comfortable with this but I'd be suprised if you find many people willing to help you achieve your aim at the expense of others.


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## PiedPiper (25 Sep 2011)

Standing room only on the high moral ground.
NIB is no more a real bank and just about as well up on sharp practice and unethical as its possible to be.

The so called Zombie banks are not irish owned ither spot the name National irish bank, Allied Irish bank, Bank of Ireland.  What have they all got in common Irish and none of them are!!

For the OP, go for a settlement if you can its a perfectly reasonable proposal.


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## Don_08 (25 Sep 2011)

How much is the property worth now?


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## horusd (25 Sep 2011)

PiedPiper said:


> *Standing room only on the high moral ground.*
> NIB is no more a real bank and just about as well up on sharp practice and unethical as its possible to be.
> 
> The so called Zombie banks are not irish owned ither spot the name National irish bank, Allied Irish bank, Bank of Ireland.  *What have they all got in common Irish and none of them are!!*
> ...



Actually only National Irish is foreign owned. The others are Irish and to one degree or other owned by the tax payer. 

I'm fascinated that you find the OP's proposal perfectly reasonable. They propose to underpay a valid debt, freely entered into for investment purposes, and which they are entirely able, if now somewhat  reluctant, to pay. Should they succeed in the endeavour the likely people picking up the tab will be the taxpayer. Do you find the prospect of paying someone's 
debts attractive?  That would indeed be very generous of you.

Let's imagine that the shoe were on the other foot, and the bank could force the borrower to sell at a discount of 25% and pocket the difference. Would you find that equally reasonable? Never mind "standing room only on the moral highground" perhaps a look at the actual ground might clear the matter up.


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## tailgunner (29 Sep 2011)

Clarity.Trying to sell rental property -no luck yet-hoped it would provide for childrens education originally .Can offer building society €50k now and closure or may be unable to sell house or meet mortgage repayments.


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## ClubMan (30 Sep 2011)

I'll skip the "moral" issues since they are already covered above ...


tailgunner said:


> I owe approx €80k ish .
> 
> ...
> 
> have now got €50k.Would the building society accept this sum as a final payment of loan ?


Only they can say. Personally I doubt it given the limited info posted so far. As others have said on the face of things it might be difficult to plead hardship and the lender will most likely look for a good reason why they should write down €30K but ...


> and how would I go about it


... you'd simply have to negotiate with them as best you can.


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## Nationaldude (30 Sep 2011)

The title of the thread is "Mortgage Arrears", how have you got arrears when you have 50k sitting in the bank?


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## tailgunner (30 Sep 2011)

Thank you Clubman.Thats the road i am following .will keep you posted.


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## Bronte (7 Oct 2011)

If you tell them you have 50K they will not let you settle for 50K because you also have the equity in the house, which has got to be more than 30K, though of course it may only be worth 30K depending on where it is.  

There are alternatives to what you propose to do if you are struggling, such as paying back part of the mortgage, or other debts if you have those.  Does the rent cover the mortgage on the investment, do you have a home loan etc.  Perhaps you ought to do the money makeover thread.


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