# Guarantor options



## Pet (5 Apr 2014)

Hi can anyone help me on this We went as guarantor for sons mortgage
My son went abroad to find work and both of us are on social welfare as I have a progressive illness, we are talking with the banks now on two years nothing happening .  
Mortgage. €300000
Arrears.  €30000
Value of house €90000
Told bank we would sell house and try to do a deal on shortfall 
Sent in all they asked for waiting for a reply But now they have sold the book we think. We have no money but we do own our home . Value €150000 we are worried sick in case they come after our home because we are the guarantor 
Please if anyone was in this position could you give some advice .cant take  anymore. All we have is our home.


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## hippy1975 (5 Apr 2014)

Can you provide more information, how much is your son contributing now to the mortgage from his job abroad, what should the repayments be and what is being paid each month, is the property rented out ?
You are right to be very concerned, as guarantor you are exposed here, your son needs to be making every effort to resolve this.


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## Brendan Burgess (5 Apr 2014)

You should fill in this: 

Standard Format for mortgage arrears and negative equity case studies


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## Pet (5 Apr 2014)

Nothing has been paid in the last two years as my son was  on welfare for two years as well as us that is why he went at this time he can only keep himself
Have house since 2007all of us lost our jobs in 2008 paid mortgage until 2012 
With savings and by renting .as I said I am ill and it was to much to look after a the house as all we could it for was €500 per week and then we had to pay tax and trs on it to sink for all this sorry but it seems every thing is going wrong
Sick to death with it not your fault


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## Pet (5 Apr 2014)

*Guarantor option*

Hi Brendan thanks but my son has already send in aSFS and all the details that go with it.  we have also.  I talk to the bank on my son behalf.  Any time i was talking to the bank and that is a lot. I had no problem with the way they talked to me they have been nice. And I keep talking to them but nothing seem to be happening . Just giving details all the time .more worried about my home as we have done work on it for when my illness progresses . We are both 60 years old 
Didn't think I would have this worry as well as my illness. Sorry about talking about it .  Thanks


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## dewdrop (5 Apr 2014)

I really feel sorry for your situation.  Unfortunately I am not uptodate with the various steps that a bank can take in your position.  However i think it would be a long drawn out process and i reckon that at the end of the day no Judge would see you being evicted from your home which i suspect is your real concern. Try and not worry unduly. You are most likely one of many in this situation.


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## Pet (5 Apr 2014)

*Guarantor option*

Thanks dewdrops, yes you are right my home is my worry 
We have not told our son much about the illness as he would come home.
We don't want that, firstly it would make no difference he would have no work and than he would be depressed again, that was the reason for him to go to make a new life ,  we have offered to sell the house and our family said they would help us with some payback on the shortfall.we are not looking for a easy way out ,but looking for the bank to meet us halfway or something so we can keep our home . Regards


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## Brendan Burgess (5 Apr 2014)

Hi Pet

You will need to give all of that information to us so that we can advise on the situation.

Is it a tracker mortgage?  What rate?
Which lender?
What rent are you getting? 
What is your son's income?


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## Pet (5 Apr 2014)

*Guarantor option*

Hi Brendan
Bank =irish nation wide
Rent =not renting
Mortgage €300000 interest 4.95 €1450 pm

Son income after tax €1900 lives abroad has to pay rent
We don't rent the house anymore only getting €500 pm had to pay tax and TRS
Upkeep of the house it just did not work for us as my illness was getting worst
Dealing with people renting, some times it was hard to get the rent
As we said we are willing to work with the bank , regards


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## Brendan Burgess (5 Apr 2014)

Your son's  loan has been sold by IBRC to a vulture fund. 

It is very hard to know what they will do in this case. 

They _might _be happy to settle for the proceeds of the sale of your son's home. 

They could well seek to enforce the guarantee.  To do this

1) They will demand payment of the shortfall from you under the guarantee
2) They will get a judgment against you in the court if you don't pay it
3) They will lodge the judgment against your home as a mortgage 
4) They could seek repossession of your home to pay off the judgment mortgage 

Irish Nationwide's paperwork was notoriously badly done. You will need to consult a solicitor immediately to check all the paperwork to see if the guarantee is valid. 

My gut feeling, and it's only a gut feeling, is that they will get a judgement against you and lodge it against your home. But they won't go any further than that.  If you ever sell your home, they would be entitled to have the judgement + interest paid out of the proceeds of sale. 

That would be a fair solution. You get to keep your home, but you won't be able to move.


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## Pet (5 Apr 2014)

*Guarantor option*

Hi Brendan,
Thanks very much for that intake,

As I said our family will try and do some deal with the shortfall if the banks agree we do not expect to pay nothing . All I ask is to let us keep our house,

Kind regards Brendan
 Pet


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## Springsteen (6 Apr 2014)

Pet,

Get professional advice and representation immediately. Having someone in control of the situation will immediately reduce the stress you must be under, and that can only benefit your health.

The situation itself, no matter what, its not as bad as you think it is. You will find a solution.

Split the problem into two distinct areas. Legal and financial.

Legal. Did you sign paperwork to guarantee loan? Etc etc. Forensically have a solicitor go through every stage in the process. Check loan agreement etc etc. You might find a way out in the paperwork.

Financial. Lots of options here. Depending on what your preferences might be a professional will help you navigate toward a palatable outcome.

Legal again... If the bank/vulture fund don't play ball. Again with good advice you could do quite well if they pursue you in the courts ( unlikely ).

I wish you the very best of luck. Don't let the situation get the better of you. It'll work out.

S.


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## Pet (6 Apr 2014)

*Guarantor option*

Thanks Springsteen

It is nice to know people care, we are going to get help
We are willing to look at option such as split mortgage or sell the house
And do some deal about the shortfall , there is just so much of a shortfall,
We hope a deal can be done with the bank and then they would not come after our home.  We have worked from we were 15 and never were out of work until
My illness got the better of us. I pray to god some good will come out of this.

Thanks again
Pet


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## Pet (28 Apr 2014)

*Guarantor option*

Just to let you know loan sold to lone star
Anyone know anything about them

Thanks


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## Gerry Canning (28 Apr 2014)

Pet , AS per Sringsteen. 

Write and ask for copies of all and any documentation you may have signed to guarantee your son. INBS were notoriously poor at records. It could well be the Guarantee is (lost) or  if it exists it is not enforceable  in law.
Be VERY slow to agree anything without good advice.
Be very slow to let anyone register a Hold over your house.
The issue is now in Lonestars hands, so I think it is now up to them to come back to you , when they do, make sure you have what you signed in front of you not what someone says you signed.


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## Pet (28 Apr 2014)

*Guarantor option*

Hi Gerry

I am getting legal advice .We signed the guarantee. But because we were sure that IN was taken them off after 5years the guarantee did not say this but the bank manager told us this and we have two documents from IN one saying that after 5years we would no longer be needed and on the other it says that we do not have to get insurance as my son would stand on his own and we would be only guarantor for a short time. The bank told us our names would come off after 5years that is why we helped our son for the 5 years and gave him our savings. We will just have to see what happens next but thanks to all of you

Pet


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## Bronte (29 Apr 2014)

Pet said:


> we have offered to sell the house
> 
> and our family said they would help us with some payback on the shortfall.


 
Whatever you do, do not put those two options to the bank.


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## Pet (29 Apr 2014)

*Guarantor option*

Hi bro it 

Thanks but no we won't we are learning a lot about banks and the legal 
System.  We used to take things at face value but not anymore. 
We are going to get pass this somehow and come out the other end just like all the other people please God.  For now I have to look after my health.

Thanks pet


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## 44brendan (29 Apr 2014)

You say you have a document from IN stating that they will only need the Guarantee for 5 years. Is this a signed document? If so you may well have a good case to refute the current validity of the guarantee. Courts would generally tend to side with a consumer on such matters. Also, you will need to get copies of the guarantee.
I take it that neither the loan nor the guaranteed has yet been called in by the Bank. You should not take any action until this happens. If/when it does go to a good solicitor. You will need proper legal representation and he/she should be experienced in handling similar transactions. You may well find that there are problems in the paperwork. Particularly given your account of the correspondence received from IN.


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## Pet (29 Apr 2014)

*Guarantor option*

Hi Brendan
Yes it is signed by the bank manager
Both letters.they were letters that the bank were doing when they were applying 
For the mortgage . They are not legal documents
Thanks pet


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## Pet (6 May 2014)

*Guarantor option*

Hi 
Does anyone know why all the documents you sign on the day of closer
Is all dated the same but the guarantee one is dated  nearly a month later and after the date of the first installment of your mortgage. 

Pet


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