# 2k arrears with EBs



## Motherhen (16 Aug 2018)

hi hoping someone can help ! 2k arrears with ebs and have been paying just over interest only for a year. They say they will extend interest only for 24 months BUT only if I put house up for sale and pay off arrears within 1 month of acceptance of “agreement” . Have engaged with everything they asked am separated almost 2 years and have 3 kids. Dad is completely missing . Received nothing from him for over 6 months and he’s now on dole so no point in chasing him. I work and bring in approx 2k per month . Have borrowed from friends and family to keep our home . If I did sell I wouldn’t have anywhere to go and not enough to buy. It’s all looking a bit hopeless .


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## Brendan Burgess (16 Aug 2018)

To get some suggestions, you need to provide all the information. 

* Information required for mortgage arrears and negative equity questions*


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## Motherhen (16 Aug 2018)

*Income details
Net monthly  *

*
Net monthly *
income partner/spouse: 0
Me : 2000
Income history: have worked for HSE for 10 yrs x 19 hours per week 
Amount of child benefit received 260 pm

*Personal circumstances so we can calculate your reasonable living expenses *
The Insolvency Service has published Guidelines for Reasonable Living Expenses based on the family size, whether or not you need a car for work, childcare costs and other exceptional circumstances. By filling in this information, we (or you ) can calculate what your reasonable monthly living expenses should be. 

One adult family 
Do you need a car for work or do you use public transport? Car
Number of children 0- 2 years old:0
Number of 3 years old children:
Number of 4 - 11 years old: 1
Number of 12 - 18 years old: 1
One 18 year old doing apprenticeship 
Monthly childcare costs: 100
Montly spend on special circumstances: e.g. exceptional healthcare costs



*Home loan*
Lender: EBS 
Amount outstanding: 191,000
Value of home: 350,000
Interest rate: 
Monthly repayment: 580 interest only if I accept deal on offer , 1200 if I don’t 
Amount in arrears: 2200

Summary of discussions and agreements with the bank

Have been on interest only since I advised them of separating. Have been paying just over interest only as agreed with them but the year was up a couple of months ago and I advised them situation had gotten worse as ex no longer lives with us and hasn’t paid anything to me or off mortgage since Xmas 2017. They sent a letter saying I could keep interest only for 24 months but had to immediately clear arrears and put house up for sale. If I could clear arrears I would just do that and not put house up for sale but I can’t afford full repayment which is 1200 pm and unlikely to be able to for the foreseeable so it feels like a rock and hard place. Take the deal but risk homelessness or don’t take deal and risk them repossessing ? 



*Credit Union *
Amount of shares 1000
Amount of loan outstanding 8000
Monthly repayment 250
Term left 4 years 


*Other loans and creditors - *
Family loan - 5000
Family loan - repaid nothing so far 

*Other savings and investments none 

Do you expect any lump sums in the medium term future? *
Redundancy, inheritances, injuries awards.
*No 

How important is retaining the family home to you? *
Which of the following best describes your situation?

Most important, otherwise we are homeless . I could use surplus of sale of house to private rent but it wouldn’t last long , my ex would come after his half and I still have the family loan and credit union loan to pay 


*Any other relevant information

What is your preferred realistic outcome? *
Agree a realistic repayment with the bank where we don’t have to sell up


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## Brendan Burgess (17 Aug 2018)

What interest rate are you paying?  It looks like 3.6% from the figures you have given.

When did you first get into difficulties?

Can you not get full-time work or, at least, more hours?

What is the income of the children's father?  Have you a maintenance order against him? 

Brendan


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## Bronte (17 Aug 2018)

*Income Net monthly  € 2000 for 10 yrs x 19 hours per week*
Child benefit received 260 pm
Total €2260
One adult family with car
Children 3, one under 11, one under 18, one 18 year old doing apprenticeship
Monthly childcare costs: 100

*Home loan*
Lender: EBS
Amount outstanding: 191,000
Value of home: 350,000
Interest rate: ???????????
Monthly repayment: 580 interest only, 1200 capital and interest
Amount in arrears: 2200
Term remaining: ????????????
Equity: 350K - 191 - 2 = 157K 45%

*Summary of discussions and agreements with the bank*

Interest only for one year was agreed and is now finished.

*Option 1*
Allowed interest only for 24 months but had to immediately clear arrears and put house up for sale.
*Option 2
*
Clear arrears, keep house,  but I can’t afford full repayment

*Credit Union *
Amount of shares 1000
Amount of loan outstanding 8000
Monthly repayment 250
Term left 4 years

*Other loans and creditors - *
Family loan - 5000- no repayments

*How important is retaining the family home to you? *
Most important, otherwise we are homeless.

*What is your preferred realistic outcome? *
Agree a realistic repayment with the bank where we don’t have to sell up

*Questions:*
_What is your age, what is the mortgage term remaining, does the 18 year old have income, how many bedrooms in your house. Are you rural or in a large town or city. What is your interest rate. Can you increase your hours. 

When you answer all questions advise will follow._


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## Bronte (17 Aug 2018)

Brendan Burgess said:


> Can you not get full-time work or, at least, more hours?
> 
> What is the income of the children's father?  Have you a maintenance order against him?



Husband is on the dole so he's lost the family home, and has low income.  No point wasting time on that.


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## Bronte (17 Aug 2018)

Income: 2260
Mortgage 1200, CU 250, child 100, car, utilities, food ..........
710 monthly to cover all those costs


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## Brendan Burgess (17 Aug 2018)

Motherhen said:


> he’s now on dole so no point in chasing him.



OK, I missed that.

Brendan


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## DeeKie (17 Aug 2018)

Could you take in a lodger? Can the 18 year old doing the apprenticeship do some weekend work?


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## Motherhen (17 Aug 2018)

Thank you both for your replies 

To answer your questions Brendan

I am 43 years old 

Term remaining is 195 months - in the “offer” letter they further said that they won’t extend the term so if house isn’t selling and interest only expires , I will have to pay even more than 1281 per month to make up the time 

Interest rate is 3.7% variable 

3 bed semi in suburban Dublin 

Eldest is 1st year apprentice he starts at 5am on other side of the city it almost costs him to do the apprenticeship he gives me €20 per week when he’s here but he has to stay mostly with friends and family who are nearer transport links and a chance of a lift to work 

I couldn’t get more hours in my job. I’d have to change jobs and with additional childcare , emotional stress on kids at the moment and absolute fear of what’s happening I don’t feel in a position to start looking for a job


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## Bronte (17 Aug 2018)

Why can you not get more hours in your job?
Can the eldest not move in with family, which is apparently close to his job for now and get in a lodger? I'm guessing you've two doubles and a single, you move into a single and two or three kids into the double and rent the other room.  How much would a double room earn in Dublin anybody?
I don't understand why the bank won't increase the term. You need to go and see Mabs. Are you entitled to any state allowance/extra income, have you looked into this. Try citizen's advise.
How much does the apprenticeship pay?
5 am is a very early start. How many hours does he have to work?


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## Motherhen (17 Aug 2018)

DeeKie said:


> Could you take in a lodger? Can the 18 year old doing the apprenticeship do some weekend work?


I think you’ve missed the point . Even if I could pay the mortgage interest only and the arrears (which I can’t without borrowing more money) the current options are
1) pay arrears in full now and put up house for sale immediately
2) ignore the offer and risk repossession

Bronte
sorry , I have the WPF payment replacement for Fis , they give me €50 per week as they based it on my ex wage and maintenance (not a penny from him since Xmas) It’s up for renewal in December and I might get more then


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## dereko1969 (17 Aug 2018)

Sounds to me like EBS are not adhering to the code. I would think, if you keep engaging with them and keep paying interest and a bit more there is absolutely no chance that you will be forced to sell, particularly given the equity in the house.
They would be laughed out of court if they tried to force a sale, that's if they even had their paperwork in order which given Brendan's court reports would seem to be unlikely particularly as it is EBS.
Try and keep calm in this difficult scenario. You will *not* be forced into a sale unless you ignore them.


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## dereko1969 (17 Aug 2018)

Have a look here

http://www.citizensinformation.ie/e...er_protection_codes_and_mortgages.html#l6ce63

and check to see that they are following procedures correctly.

The main thing you need to remember is that they will not successfully force a sale on you if you continue to make interest only payments.

Sorry for *2k* arrears they will not even go to court.


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## RedOnion (17 Aug 2018)

It's very important that you engage with the bank to keep the protection of the code mentioned above.  Then they will have to offer other options.
Otherwise, they can treat you as non co-operating.

By the way, you should have the option of fixing interest rate at 3%, which would reduce interest cost by 110 per month.


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## Bronte (17 Aug 2018)

Motherhen said:


> I think you’ve missed the point . Even if I could pay the mortgage interest only and the arrears (which I can’t without borrowing more money) the current options are
> 1) pay arrears in full now and put up house for sale immediately
> 2) ignore the offer and risk repossession
> 
> ...



Does that mean an extra 50 X 4 income, or is that included in the 2K.  You need to answer all questions, we cannot give you suggestions unless we have the full picture.  If you're not receiving maintenance and your WPF (?) is based on it can you not ask for a review now?

But I agree with Dereko that if you pay interest only then they're unlikely to get possession.  Burgess is more of an expert on this as he's seen a lot of court cases.  There are many threads on this.

And no I'm not missing the fact that you can't right now pay the arrears, instead we are trying to see if there is a way that you can pay more than just interest only.  So a response on renting a room, on your son's income etc would be helpful.


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## DeeKie (17 Aug 2018)

Motherhen said:


> I think you’ve missed the point . Even if I could pay the mortgage interest only and the arrears (which I can’t without borrowing more money) the current options are
> 1) pay arrears in full now and put up house for sale immediately
> 2) ignore the offer and risk repossession
> 
> ...


No I was suggesting you counter offer, and think how you could make the offer more attractive. Good luck. I feel for you.


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## Thirsty (17 Aug 2018)

"on the dole so he's lost the family home, and has low income"

He is still obliged to support his children.

With a court order for Child Maintenance, father can claim SW for dependent children and this at least could be paid for their support.

It will also be easier to apply for a variation when he does get a job.  Judges have been known in the past to order parents to get a job and support their children.

Assuming he is an adult and is otherwise in good health; I believe anyone not working is choosing to be unemployed.

Edit to add: its not clear if you have a Judicial Separation in place or if you are divorced.

Until either of those are done, he can still make a claim against the family home.


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## peemac (17 Aug 2018)

Difficult situation between job and kids and probably not feasible to do more work as it will require more childcare.

A definite option is renting a room - Sunday evening to Friday morning "digs"

Most third level students are quiet and respectful and you'd easily get €500/month tax free for a room.


As for EBS - I'd be playing for time and saying that as soon as the youngest gets into secondary school , full time work would be an option resulting in far greater income. Hence a two year interest only plan is both warranted and suitable. 

I'd also try and switch to a fixed rate of 3%.

I'd also check if you by any chance could be in the scope of the current tracker dispute with EBS - see other threads .

But definitely start by looking to take in a student. Its free money for little inconvenience.


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## peemac (17 Aug 2018)

Going after the father of the kids is very easily said, but can be a long stressful process and will not help in the short term.

That's for after the current situation is sorted out.

They've agreed in principle to the 2 years interest only - you just have to negotiate the conditions attached and suggesting full time employment in the health service in 2 years is your ace.

And get rate to 3%


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## deansmith27 (19 Aug 2018)

Motherhen,

I feel sorry you with some of the responses you're getting. ''Can you take a lodger'' no she cant she has young kids. My advice would be to lodge what you can afford each month to the mortgage account, go to the imho association and get them to negotiate a deal. It will take a long time before the bank could get you out and by that time hopefully the imho will have got some sort of deal for you. Best of luck


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## Easeler (20 Aug 2018)

Would you consider relocating to a cheaper part of the country. If you could do a deal with dead beet dad to get his name off your house and sell up you would have enough left over to buy a nice semi down here in the west, 50 min from galway city, good schools and plenty of work around now as well. It would be a big move of course and would take a while to settle in but it can be done.


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