# In Arrears (mortgage) by 2 payments



## Worriedman (1 May 2015)

Around 5 months ago i fell into mortgage arrears first it was one month behind now its 2. Over the time ive made full payments but am still behind. the bank is wanting me to fill out a financial statement however Ive told then ill try to clear arrears by end of May so I dont have to do that. Im afraid of only being able to make one payment instead of the 2 that are due. Can anyone tell me what lies ahead. I dont want to do the financial statement I just want to clear the arrears but they are not giving me much time


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## elcato (1 May 2015)

Just pay the 1 month first and take it from there. Don't take phone calls on the matter, just explain to them you want everything in writing. Don't bother filling in the forms either unless you feel you are going into further arrears. Problem you may have is that you may have your credit rating marked which could affect you in the future. Wh not fill out the money makeover template here and post it up in that section so people can give some advice regarding your full situation.


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## Worriedman (1 May 2015)

Thanks for reply I wont fall further into arrears but I may still find myself 1 payment behind. they insist if I dont clear arrears by end of month I have to fill out this financial statement. I dont want it to get to this stage if possible


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## Brendan Burgess (1 May 2015)

Why are you in arrears? 

The lenders are generally easy to deal with.  They will probably extend the term for you and capitalise the arrears.  

If you don't want to fill in the form send in a letter explaining the situation in full. Tell them when you will have the arrears cleared or ask them to capitalise the arrears. 

Brendan


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## Worriedman (1 May 2015)

Brendan Burgess said:


> Why are you in arrears?
> 
> The lenders are generally easy to deal with.  They will probably extend the term for you and capitalise the arrears.
> 
> ...


I'm in arrears because of a few unexpected bills they said If I can't clear the arrears soon I have to fill out financial statement and they will see about adding it onto end of mortgage. Could they just do this without filling out statement. The financial statement side feels like I'm applying for mortgage all over again and I don't want that


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## Brendan Burgess (1 May 2015)

Hi Worried Man

Why not provide the information as Elcato suggested? 

You should be able to cope with unexpected bills.  If you have an uncomfortable mortgage, your lender will probably reschedule it for you and you can build up a small pot for unexpected bills. If it takes filling out a few forms, it's well worth it.

Brendan


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## Worriedman (7 May 2015)

Brendan Burgess said:


> Hi Worried Man
> 
> Why not provide the information as Elcato suggested?
> 
> ...


If i fill out the financial statement they said they may put the 2 missed payments to the end of the mortgage life and extend it by 2 months. Im worried if i fill out the fin statement can they ask me to sell my home over 2 missed payments? I have kept paying full payments since gouing into arrears its just im 2 behind?


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## elcato (7 May 2015)

The form I suggested is purely a form for this website not the same as the bank. I think there's some confusion. Filling it out here would allow us to make suggestions in the long term to stop any arrears again. You will have to ask your bank whether they are willing to add it to the arrears. For now I would try and pay it as soon as you can but don't forget that there is interest on the arreas as well which may not be much but would need to be addressed. Unless you can pay the whole two months and the extra small interest I think the bank will keep insisting on the forms to be filled out. If you fill out the statement on this site we may be able to assist you to divert some money towards paying the arrears quicker and stopping this happening again.


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## Worriedman (7 May 2015)

elcato said:


> The form I suggested is purely a form for this website not the same as the bank. I think there's some confusion. Filling it out here would allow us to make suggestions in the long term to stop any arrears again. You will have to ask your bank whether they are willing to add it to the arrears. For now I would try and pay it as soon as you can but don't forget that there is interest on the arreas as well which may not be much but would need to be addressed. Unless you can pay the whole two months and the extra small interest I think the bank will keep insisting on the forms to be filled out. If you fill out the statement on this site we may be able to assist you to divert some money towards paying the arrears quicker and stopping this happening again.


The reason I dont want to fill out the financial statement is because they want 3 months bank statements and my bank account is littered with paddy power and im afraid they wont do anything for me to help clear the arrears. Has anybody got any suggestions to help me? thanks


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## Jazz01 (7 May 2015)

Worriedman - this is the form that people on this site are referring to - nothing to do with banks etc... it helps others on this site, give you constructive feedback and recommendations on what to do..


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## moneybox (7 May 2015)

Worriedman said:


> The reason I dont want to fill out the financial statement is because they want 3 months bank statements and *my bank account is littered with paddy power* and im afraid they wont do anything for me to help clear the arrears. Has anybody got any suggestions to help me? thanks



That throws a different light on the situation.  Can you borrow the money form a family member or else try and get part time job at evenings or weekend until the arrears are cleared.  I don't know how bad your gambling is but you would be well advised to seek help for it. it's a slippery slope to be getting yourself into especially when you have commitments like a mortgage to pay.


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## Worriedman (7 May 2015)

Yea Ive knocked it on the head because its taking up too much time and money Im just wondering what happens when i send in statements to the mortgage crowd will they refuse to help me with arrears because of that? Im still making Full payments but have been 1 or 2 payments behind for the last 6 months. Could I fill out the financial statement and not send in bank statements? Will they just put the 2 missed payments to the end of the mortgage?


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## so-crates (7 May 2015)

I can't second guess what a bank might decide but I think you need to rethink how you approach the question. Firstly, the banks have to be pro-active in dealing with arrears, collective can-kicking has not done the banks, or borrowers in arrears or the country as a whole any favours. They aren't asking for a statement because they want to personally catch you out. They are asking for a statement because they need to try and deal early with problems before they become catastrophic. On the whole it is a good thing, even if it is uncomfortable. Secondly, has the gambling contributed to the problem? In other words, if you hadn't gambled would you have been able to handle the unexpected bills? It is probably fair to guess that it has contributed to the problem but that doesn't mean that the problem wouldn't have arisen anyway. Sometimes big bills come up and we don't always have the immediate means to handle them (this is of course where savings come in, I'm guessing you have no cushion there). Thirdly, if you have truly "knocked it on the head" then that will also show in your statements. Perhaps as an additional step seek support, an ounce of prevention is better than a pound of cure. Even if the gambling hasn't become problematic or addictive yet, better to deal with it before it does. And it would demonstrate that you are taking the issue seriously and acting to resolve it and ensure it doesn't happen again. You need to be pro-active too. Another thing to consider is whether the bank actually has any incentive to force a sale at this point. Leaving aside the fact that selling costs money, if you are in negative equity, forcing a sale would be counter-productive, they would still need to arrange with you for the outstanding balance. Even if you are not in negative equity they will get more money from continuing the mortgage because of the interest you pay. Basically it may not be in their best interests at all to force a sale.

Fill in the statement anyway (even if you refuse to share it with them) and look honestly at what it is telling you. Can you afford the mortgage? How can you reasonably tackle the arrears? How can you plan to prevent a recurrence? Once you have all that in front of you then you will be better placed to argue your case with the bank.


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## Worriedman (7 May 2015)

Thanks for replys. without doubt gambling is the main reason why I have got into arrears. Because of this only recently I have quit gambling. What im trying to find out is what will the bank do when I submit the statement and bank statements. Ive not missed a payment in almost 10 years up to now. I can afford to pay full mortgage payments its only im finding it difficult to clear the arrears.


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## so-crates (7 May 2015)

I can't answer for the bank and I doubt anyone could on the basis of the information provided. Perhaps with more specific information laid out in the standard template others have referred to, someone working in the industry might be able to make a best guess but it would still only be that. From what you are saying (i.e. can afford the mortgage, may be in negative equity, have suffered no reduction in income, etc) I am guessing they are unlikely to want to force a sale. They want the statement so they can determine if you can afford it and devise a payment plan. If you can present a costed plan to clear the arrears and demonstrate that there is additional cash that will now be used to address the arrears then you are coming at the problem from a strong position. I am guessing you are finding it difficult to clear the arrears because you are looking to clear them in too short a timescale. If you can't access the money from an alternative source to clear them immediately, identify an affordable timescale in which to clear them (over three months? Over 6 months?) Obviously they will want them cleared as soon as possible but you need to focus on getting them cleared as soon as practicable.


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## so-crates (7 May 2015)

Worriedman said:


> Thanks for replys. without doubt gambling is the main reason why I have got into arrears. Because of this only recently I have quit gambling.


Good call. It can be difficult to maintain so it might be worth investigating what supports are available to help and availing of those.


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## Worriedman (7 May 2015)

In the meantime does anyone know what way the bank will treat this? As ive said its the first 2 payments missed in almost 10 years. The man I spoke to said the worst case scenario is they will decline to help me with arrears. Im fearing this because of the bank statement details.


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## elcato (7 May 2015)

I would send them in anyway. However, if you really are that worried why not ignore/stall them for three months and then send in the statements which have no record of the gambling site.


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## Worriedman (7 May 2015)

elcato said:


> I would send them in anyway. However, if you really are that worried why not ignore/stall them for three months and then send in the statements which have no record of the gambling site.


They said they need 3 months bank statements together with the financial statement in order to see what resolution they can come up with. Im sure they will give me a resolution and let me continue to pay my mortgage in full its just this is my first and hopefully my last experience of this and im worried and looking for others advice. thanks


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## Worriedman (8 May 2015)

Can anyone offer any advice or insight please?


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## ivannomonet (8 May 2015)

Worriedman said:


> Can anyone offer any advice or insight please?


Divide the outstanding arrears by 12 and tell them you'll pay it off by that amount over the next 12 months....


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## demoivre (8 May 2015)

Worriedman said:


> Can anyone offer any advice or insight please?



Arrears support people are essentially box tickers so whether you're €2k or €50k in arrears you're still in arrears ( arrears box ticked ). Keep paying you're mortgage as you are and write to them and tell them how and over what time frame you're going to clear the arrears. The arrears box will still be ticked until they are cleared. You will still get the letters and the phone calls because the arrears box is ticked. If you don't want the hassle of letters/calls fill in the SFS and submit it with the statements and they will come to some agreement with you about the arrears. The arrears box will then be unticked and everyone can move on .


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## wednesday (8 May 2015)

Not knowing what constraints are on your finances or your income, mortgage obligations, children, bills etc; it is very difficult to offer insight or advice blindly.

If it was me, in my situation, I would overpay by 1/2 a mortgage payment per month for the next 4 months and then be back up to date - but again as you haven't been explicit in your obligations, this is just what I would do. I would write to them advising what I intended to do and see what they come back with.


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## Gerry Canning (8 May 2015)

Worried man.

So gambling caught you and the hassle over missed Mortgage payments has forced you to give Paddy Power the boot!
That is good for the obvious reason that your money will henchforth stay with you.

I must assume you can easily afford Mortgage ,ie if ( Paddy Power hadnt interevened)w , so by showing your statements Mr Banker will see good affordability from now on.
It is unlikely you will meet a (twit) in the Bank who will give you a hard time.
There is NIL chance with you being a couple of payments (indeed even 12 payments down) that if you bring an offer that you adhere to, you will lose your home.

As Brendan says , fill the forms , send the statements and I have no doubt you will be ok , provided you avoid Paddy!

Good luck.


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## Worriedman (8 May 2015)

Thanks for reply's I feel better now and will send the lot in and be done with it.


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## elcato (8 May 2015)

Great. Let us know how you got on later as well.


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## Worriedman (15 Jun 2015)

Just a quick update on my situation. The bank has agreed to capitalise my arrears of 2 missed payments so all ended well. My advice to anyone in similar situation is just talk to the bank and get on with it. Thanks for all replies it was very helpful.


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## Macattack (15 Jun 2015)

Worriedman said:


> Just a quick update on my situation. The bank has agreed to capitalise my arrears of 2 missed payments so all ended well. My advice to anyone in similar situation is just talk to the bank and get on with it. Thanks for all replies it was very helpful.



I have been watching your post as I was interested in the outcome, as somebody who in the past had a job in that line of work.

Its great to hear your situation has been sorted in a helpful manner & that you had a positive experience.


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## Worriedman (15 Jun 2015)

I now have to sign and send back the alternative repayment arrangement. It says I am strongly recommended to take independadent legal or financial advise before agreeing this Does anyone think this is really necessary?


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## Brendan Burgess (15 Jun 2015)

No it's not necessary. 

Do read the contract though. If you don't understand it bring it to someone like the IMHO or New Beginning to have a look at. 

The only thing you need to look out for is to make sure that they don't try to take you off a cheap tracker, but that is extremely unlikely.

Brendan


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## Worriedman (15 Jun 2015)

Brendan Burgess said:


> No it's not necessary.
> 
> Do read the contract though. If you don't understand it bring it to someone like the IMHO or New Beginning to have a look at.
> 
> ...


Thanks for reply. I understand it quite clearly however it has a place for me to sign and a witness to sign. I am assuming that is for them to sign?


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## Shawnulster (8 Jul 2015)

Worriedman said:


> Can anyone offer any advice or insight please?


I work in the underwriting/collections department. My advise as per policy for Ulster Bank is, you can avoid filling out the financial statement if:
- your mortgage arrears are 3 payments down. In your case the bank would offer you a step up arrangement to pay off off the arrears within 12 months without the need for the financial statement. An option to consider if you worried about the marker on your credit file you could possibly consider the option of capitalising your arrears after 6 contractual payments under arrangement of paying extra (i.e adding the residual amount to your balance outstanding). This would mean of course you can either opt for a term extension if your unable to afford the increase in your repayments when you capitalise and want to keep the repayments the same. Alternatively you can opt not to extend the term and pay the capitalised over the remaining term with the new repayments. 
- if your arrears are more than 3 months then you will need to fill out a statement.

I think you best option is to go for the step-up arrangement for 12 months and capitalise residual arrears in 6 months. You don't have to go for capitalisation but remember you credit file would show you still behind until such a time you clear the arrears.


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