# how to exit MARP?



## nec (26 Nov 2013)

Can someone advise how to exit MARP?

I started to repay the arrears (I'm in third month of equal payments towards arrears).


----------



## Brendan Burgess (26 Nov 2013)

When you have cleared the arrears and are making the full repayments, you will no longer be in MARP.  I am not sure what the formal process is though. I imagine that you have a 6 month review and would then be told you don't need it anymore. 

The bank may agree to capitalise the arrears and take you out of MARP before that.

Why would you want to leave MARP?


----------



## 44brendan (26 Nov 2013)

MARP is not a status as such. You are eligable to avail of the MARP process if you are not meeting your agreed HL repayments. If you have reached a short/long term agreement with the Bank, and abide by that agreement, MARP has no real relevance for you. In practical terms all Banks have an ASU department that make decisions on MARP cases. If a mortgage is restructured or if arrears are fully cleared and there are no further difficulties evident, the loan will no longer be dealt with by ASU. i.e. it will leave MARP.


----------



## nec (26 Nov 2013)

second borrower isn't engaging, bank threatened to bring it to court for repossession. I can't do nothing without second signature.
Since I am working I don't want the hassle. I got better job, can pay something towards the arrears.


----------



## Bronte (27 Nov 2013)

nec said:


> second borrower isn't engaging, bank threatened to bring it to court for repossession. I can't do nothing without second signature.
> .


 
Nec if you want a meaningful response can you please give us all the details, giving us bits of the story is not conducive to good advice.  How about you fill out the money makeover section.


----------



## nec (27 Nov 2013)

*Income details*
*Net monthly *(i.e. after tax) Income self: €2,400
nature of income: Employment
Income history: "I have received pay rise in July"
*Net monthly *income partner/spouse: N/a

*Personal circumstances so we can calculate your reasonable living expenses *




*Home loan*
Lender: 
Amount outstanding: 315,000
Value of home: to be determined
Monthly repayment: 1,100
Interest rate: tracker 
Amount in arrears: 7,000 


*Monthly outgoings:*

*Total:* 

Estimated: from ∼500 minimum to ∼1,300 very maximum (it really depends of the month as no month is 100% equal, I'm able to sometimes sublet one room, so occasionally I receive extra ∼300 to ∼400).

Above may seem vague. I'm able to follow correct opinion (if given)

*Summary of discussions and agreements with the bank:*

No major agreements, second borrower not cooperating

*Agreements with mortgage arrears team:*

equal repayments towards arrears for the next 7 months (on the top of monthly repayments), past six months the monthly repayment made in full



*Other loans and creditors - *


Term loan Amount outstanding: 3,400
Term loan term left: 3-4 years (TBC)
Term loan - monthly repayment: 100
Term loan - interest rate: 14%

*Other savings and investments *

*Do you expect any lump sums in the medium term future? *
Redundancy, inheritances, injuries awards. 

Yes 

1st small lump sum received 4,000 - this currently being used to repay arrears (bank agreed to that)
2nd - expecting larger lump sum, amount to be determined


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


I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.


*Any other relevant information*

second borrower not cooperating 

*What is your preferred realistic outcome? *
For example: 

Not too sure.


----------



## 44brendan (27 Nov 2013)

Information provided is limited, so it is difficult to assess your financial position. Key missing information - required monthly mortgage repayments & your own monthly outgoings.


----------



## nec (27 Nov 2013)

I updated informations


----------



## nec (28 Nov 2013)

proper advise would be appreciated.


----------



## nec (29 Nov 2013)

still looking for opinions


----------



## Bronte (29 Nov 2013)

What is your interest rate, is 1100 repayment a full repayment or a reduced payment, if not the full, what should it be. 

What are you paying towards the arrears. You mention 'equal payment to arrears' what does that mean. 

Forget about rent a room for now. How much of your income of 2400 do you need to live on. If you pay 1100 plus 100 out of that, it leaves 1200, are you able to live on that? Heat, light, car, food etc.  Do you have a credit card.  How many years remaining on your mortgage and what age are you.


----------



## nec (29 Nov 2013)

interest rate: as far as I know about 2.4% (tracker)
from about 1200 left I am able to live on that 
no credit card
remaining 30 years
age 31
equal arrears payments of 1200 monthly (I have received small lump sum recently), I also have a family support (small family loan might be possible If I don't meet the arrears on my own) - I don't need to repay all arrears at once, I have agreed monthly payments


----------



## nec (29 Nov 2013)

Bronte said:


> What is your interest rate, is 1100 repayment a full repayment or a reduced payment, if not the full, what should it be.
> 
> What are you paying towards the arrears. You mention 'equal payment to arrears' what does that mean.
> 
> Forget about rent a room for now. How much of your income of 2400 do you need to live on. If you pay 1100 plus 100 out of that, it leaves 1200, are you able to live on that? Heat, light, car, food etc.  Do you have a credit card.  How many years remaining on your mortgage and what age are you.



I have responded. To read updated response, might need to delete cookies or re-open AAM as I have edited the post.


----------



## Bronte (29 Nov 2013)

So right now you are making a mortgage payment of 1100, which is the correct amount, and you also repaying the arrears, with another 1200. 

You mention a lump sum, why don't you pay back the loan at 14% interest, it would be another bill sorted. 

If you can comfortably live on your income, why not get someone stable to rent a room, and overpay your mortgage, you have mentioned NE.

Do you know your outgoings? What do you do when you have a big bill, such as insurance or a car repair, what do you do in those months? You haven't mentioned any figure for savings?

I don't recommend you borrowing more money from somebody else to pay the arrears.  If you feel that you are the type of person that cannot hold onto the lump sum in order to repay the arrears monthly, then repay all the arrears now.


----------



## nec (29 Nov 2013)

I am not sure if repaying the loan at 14% at the moment is correct. I just want to clear the arrears. Once they are cleared I will try to contribute to the loan at 14% (assuming the room will be rented).
I am sometimes not too comfortable to live on that income but it is not the worst income.

Big bills- I have really small direct debits (all insurances are less than 30e per insurance per month)
heating and other expenses were minimized to the level I can handle other bills


----------



## Bronte (29 Nov 2013)

nec said:


> I just want to clear the arrears.


 
Is your lump sum enough to clear the total arrears?


----------



## nec (29 Nov 2013)

Bronte said:


> Is your lump sum enough to clear the total arrears?


Lump sum:
4k.
It is not enough to clear total arrears


----------



## nec (29 Nov 2013)

The person from the bank called to request a meeting.

I met with the Representative of the RECOVERIES section of the bank.

I had a 90 minute private meeting in the head office of the bank (first after 12 months) with the bank's representative.
All of my previous requests for such meeting were for 12 months unanswered.

During the meeting discussed were:

1) Term extension
2) split + term extension
3) write off 
4) issue of non-cooperation

I was told:
The issue of non-cooperation can be resolved - the bank has made proposal as to how to resolve this.
This involved getting proof that all reasonable attempts were made to contact the 2nd borrower and that this person have had not been in cooperationn therefore will be deemed by the bank as a non-cooperating borrower.

- There was no advise given to me whether or not this is a good or bad thing for me.

The points of legal implications of the non-cooperation of the 2nd borrower, the ones which may affect 1st borrower were very vaguely discussed (I was just told to take a legal advise).

I was told:
From above options only two options are available, e.g. option 3) even it is in the code of conduct, however it is not actively entertained by the bank or by borrowers (as it included write off on the bank's side and on the borrowers's side it involves an interest rate increase and losing tracker e.g. moving to The standard variable rate, which at the moment is 4.4%).

Interesting facts:

The maximum age limit for the borrower has significantly increased. to 70 Years of Age
The possible mortgage term extension: the term has significantly increased as opposed to what I was told for years of talks in the branch. Maximum 40 years of the loan term

*THESE WERE VERBALLY GIVEN, NOTED BY BANK's REP on own piece of paper and taken back to the suitcase, nothing given in writing.*

3 or 4 times I was advised to take a legal advise. 

My thoughts:
I have very recently sent a letter to arrears section and followed by the payment (we came to an informal agreement over the phone).


I don't know whether or not this is bank's attempt to apply to court for the repossession based on the fact of one borrower non-cooperating and my possible in-ability to support this mortgage on my own (the Total figure in the Standard Financial Statement may be against me as total outgoings shows my expenditure exceeding my monthly income (by 80e). 

I was told to read CCMA.


----------



## nec (29 Nov 2013)

what happens if the bank will now return to me with an offer:

1) term extension 
2) split mortgage + term extension


----------



## nec (29 Nov 2013)

what happens if the bank deems me a non-cooperating borrower on the fact that the 2nd signature is missing from the STANDARD FINANCIAL STATEMENT e.g.

can the absence of the 2nd signature somehow bring me to any of the two below clauses:

(a)
''the borrower fails to make a full and hones disclosure of information to the lender..''
(b)
''the borrower fails to provide information, relevant to the borrower's financial situation''


----------



## nec (30 Nov 2013)

anyone?


----------



## nec (1 Dec 2013)

Brendan or Bronte, should I repay larger arrears (I mean larger than agreed with bank - while I have an opportunity to use the small lump sum and ask family for loan to repay the balance) or should I just wait and keep repayments of arrears on the level what was agreed with the bank?

I read recent posts where banks decided to terminate the mortgage by bringing the borrowers to courts for the repossession.


----------



## nec (1 Dec 2013)

I fear one scenario, today another posted have posted similar story where the 2nd borrower has not engaged and non-cooperating, the bank gave an offer and due the absence of the 2nd signature the bank has decided to make move and repossess. 

I fear that the bank have made an urgent call to meet me to fulfill it's obligation to present me with an offer...

they know well that I won't receive 2nd signature as the 2nd borrower is gone ...

post I read here:

Old Today, 07:20 PM

Posts: 1
Default Any opinions re mortgages and arrears please.
Hi,
Like lots of people I made some very bad choices in 2006. I owed a small cottage in Dublin at the time with a mortgage of €166,000. It was one bed very small and my partner and I decided to buy outside the city in Kildare as it was closer to work for him and would cut his commute in half and we couldnt afford a bigger place in Dublin anyway. 

The mistake made was to remortgage the cottage with INBS as interest only mortgage for 230000 to help pay and furnish our new home in Kildare for which we also got a mortgage of €250000. At first things seemed fine. The rent on the cottage covered the mortgage and we planned once we got sorted to convert that interest only to a proper capital one and foolishly thought it would be an investment for old age.

Fast forward to today. My partner walked out in 2009 and refused paying any further on either mortgage. I needed to supplement the rental property in dublin plus now cover all payments on ppr myself. IBRC gave interest only for a year then refused anything further. I then went into arrears on both as a tenant left and I prioitised paying my home.
My ex's only engagement has been to demand the house is sold but one is in €100000 neg and the other €130000 neg equity. Neither I nor he have any way to pay the shortfall as my credit history and savings are both toast. I have rented rooms in my house and when I finally paid my car loan this February I could just about make the payments again. I have about 5000 in arrears between the 2.

IBRC have now written saying they are moving to repossess the rental cottage. I have asked for any other solution to which the reply was "yes just pay it". I would love nothing more then see that house disappear from my life as it has truly ruined it and has made these last years a mental hell. I have engaged with them since before I hit problems , if I sneezed I wrote and told them. I just would love some opinions on what to do for the best. I have tried to meet all obligations but in the end I know in 7 years that interest only buy to let mortgage will fall due and the house will never be close to covering whats owed. Its an old cottage and I live in fear of a call about repairs or replacement cookers etc being needed as there is no money to fund that.

I should mention the bank did offer to capitialise the arrears about 6 weeks ago but as they couldnt get engagement or agreement from my ex that could not proceed and the repossession letter was issued.

Am I better to surrender it now or keep on trying to pay? 

Thanks 
L


----------



## nec (1 Dec 2013)

i have a feeling... it's a bank's attempt to fulfill it's obligations in order to repossess.


----------



## nec (2 Dec 2013)

I decided not the follow the verbal agreement with the bank and repay arrears now, all the bank did for me was an initial letter saying that I may be deemed non-cooperating and that they will consider repo if I will be deemed non-cooperating.

I decided not to pay arrears in monthly installments but since I received small lump sum plus I put all my last wages, I sold laptop as well to be able to repay arrears.

I expect monies from room rental so I will be okay, next month when I will receive my wages and I will continue normal repayments.

I have informed the bank that arrears were repaid, bank said that I am clear now and will send the statement to confirm the same.


----------

