# Home facing repossession



## principle1 (15 May 2008)

I wonder if you could help me, being a 37-year-old married father of two beautiful girls, I am married to a loving wife and I am in good health, however my life is crumbling around me and I feel a complete failure in life. 

I suffer from bouts of depression and have in the past considered suicide as I feel I have failed my wife and kids not only as a father and husband but also as a provider.

You see on the 11th of February last I was threatened with being taken to court in order to have my house, _the family home_ repossessed by our mortgage provider Irish Nationwide Building Society as a result of getting into arrears to the tune of € 16, 676. 26. I did not mean for this to happen, it all started 4 years ago when I was out of work and unable to secure employment for about 18 months.

I foolishly pinned my hopes on a windfall as a result of the sale of the Irish Nationwide (INBS) in order to clear my arrears.


Every passing month results in an increase in mortgage repayments due to crippling interest rate hikes and I unfortunately cannot see light at the end of this tunnel.

I found myself in the devastating situation whereby I was facing  loosing the _family home_ as a result of my own failings. This was to be my children’s inheritance something which my wife and I worked so hard throughout the years to provide. I have in the meantime come to a repayment agreement of €225.00 per week with Irish Nationwide which is very steep considering the balance outstanding on our mortgage is €86,000.

I have considered re-mortgaging my property in order to release some of the equity built up over the years, the balance on my mortgage is €86,676 and my property is valued at €380,000, I also have a number of other loans totalling around €20,000 which I am also struggling to repay, my credit rating is severely damaged as a result of my past debts and the only company who will offer us a mortgage is GE Money at an APR of 9.72%, that’s 4% above the average APR of the leading financial institutions today, that means that in order to borrow €120,000.00 to clear my existing mortgage and all other loans it will cost me a total of 


I was wondering if you have any advice or solution to my problem as despite the fact that we are both working we continue to struggle week in week out.


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## Satanta (15 May 2008)

*Re: Plea for Help !*



principle1 said:


> I was wondering if you have any advice or solution to my problem


In order for people to give advice regarding the financial issues, you really need to provide a little more info.

What is your current monthly income?
What are your monthly outgoings?
(give current monthly payments, rates, terms and totals on loans/debts/CCs)

I'd suggest having a look at the standard "Money Makeover" template and maybe fill that in as it lays things out pretty well (less text for people to review so easier to comment on the financial side of things).

As your ICB report is currently showing a few black marks, you may find it difficult to go down the route of remortgaging. You might also find it a little difficult to consolidate loans. MABS should be able to provide you with a few options regarding these issues and potentially help you negotiate more favourable repayments to the banks. 

Potentially some of the terms might/could be extended which, while costing more in the long run, would help with the monthly cash flow in the short term... however the advice from MABS will be far better than anything I can suggest so definatly use them as your guide.

The first piece of advice you'll recieve from the majority of people will be to get in touch with MABS (www.mabs.ie) as soon as you can, they are specialists in this area and deal with this type of issue for many many people every year..... 

More importantly, do try and keep the head up! You have a loving family surrounding you. I have no doubt there are plenty of "wealthy" people in Ireland who would give every cent to experience that kind of love.

Edit: To add additional info


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## Complainer (15 May 2008)

*Re: Plea for Help !*

Sorry for your troubles. It might be worth talking to MABS about your debts, though they don't have any magic wand.

If you haven't already spoken to your GP about your suicidal thoughts, please do so. IMHO, taking your own life would be a far greater failure to your family than any financial issues.


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## eileen alana (15 May 2008)

*Re: Plea for Help !*

Hi principle1, Do follow the advise and contact MABS, in some areas a member of staff  will come out to visit people in their own homes.  You are feeling very dark and down in yourself right now but it won't always be like that, seek professional help from your GP.  You are blessed in many ways with a lovely family and  I am sure there were alot of other people banking on the INBS windfall but it will eventually come to you.  The weekly repayments of 225.00 euro  on an 86,000 euro mortgage seems very expensive, they has got to be cheaper options than that out there. Who is your mortgage provider?
Be gentle on yourself and take care.


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## Brendan Burgess (15 May 2008)

Hi Principle 1

I believe that the Irish Nationwide has a systematic error in the way in which they calculate arrears. I would imagine that the correct arrears balance is much less than they estimate. 

The net effect is that once you fall into arrears, it is almost impossible to get out again. 

Don't worry, no court will give an order for repossession once you are making regular repayments. 

If you send me an email to burgess7@eircom.net I will look over the statements for you and give you the analysis you need to deal with them.

Brendan


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## ClubMan (15 May 2008)

principle1 said:


> I suffer from bouts of depression and have in the past considered suicide


Please contact your _GP, A&E_ and/or the likes of the_ Samaritans_ about this issue as a matter of urgency. Please think long and hard about choosing a permanent "solution" to a temporary problem.


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## eileen alana (15 May 2008)

How very kind of you Brendan, good on you.


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## Brendan Burgess (16 May 2008)

Principle

Just a few more points which have occurred to me since. 

The Irish Nationwide, like all lenders, is legally bound by the Consumer Protection Code which has a section on how to deal with borrowers in arrears. 

If they are not complying with the CPC or if they are overestimating your arrears, you will be able to complain to the Financial Services Ombudsman. 

Do not switch your loan to Smart Mortgages. It will be far more expensive and you will lose out on the eventual windfall. 

The interest cost on a loan of €86k from the Irish Nationwide should be around €90 a week. That means that you are making capital repayments of €135 a week or €7,000 a year.  If you are making most of these repayments, the loan balance _should _be coming down gradually. I suspect that the Irish Nationwide is showing the loan balance reducing but the arrears balance ballooning. The Irish Nationwide would find it very difficult to explain this to the Ombudsman.

Brendan


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## Bronte (16 May 2008)

Principle you are not a failure, you are currently having problems and due to the depression you are probably not able to see the bigger picture, you have a loving wife and daughters, how is that failure, that's success, a house can be a home but you plus your family are really the home.  Your debt is not so big, it's not something that cannot be fixed by going to the right people.  Your wife can be a support to you, have you told her how you are feeling, by sharing your problems with her and telling her how low you feel she will help you I'm sure.  The worst thing that can happen is not the debt but your family losing you.


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## Brianne (16 May 2008)

Principle, firstly let me say that you deserve a lot of  credit for coming on and talking about what is going on. It is very difficult to write about the situation you are in and you are very clear about it. You have got good financial advise here from people who have a better understanding than I of financial matters.
However, you mentioned in your post that in the past you suffered from depression and I would like you to think back to that time and try to remember your skewed thinking at that time.
You are going through a very stressful time, and as you know, with a previous history of depression, one's thinking can become very skewed, to the detriment of one's ability to see any positives.
As a matter of urgency, go to your doctor, tell him what you have been so honest about here.This is very important because in order to do some of the stuff suggested here, you will need clear thinking.
Remember, that people like you who are able to see problems so clearly and realistically are often prone to pessimism.
As other posters have said, you have a good marriage, and lovely children and for many of us that in itself is a wonderful achievement. That family needs you more than any material success. In your heart you know this , please go and see your GP,talk to your wife and go to MABS.
Every best wish to you.


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## principle1 (16 May 2008)

Thanks for your offer of help Brendan I will put the information together and give e-mail you the information and thank you to very much to everyone who has sent in a quote and advice on my current situation I really appreciate your kind words and advice and will arrange to contact MABS.


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## SarahMc (16 May 2008)

Do not change to Smart or GE.  Mabs have negotiating power with many mortgage providers, but AFAIK, neither of the above will deal with MABS.


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## markowitzman (16 May 2008)

In view of the amount of equity you have in the walls would you consider selling and starting afresh?
300k is a very good chunk to invest/deposit (deposit interest would nearly cover your rent!) and rent would be a stack less expensive and stressful for you all.
Remember the primary goal for your kids and family is not their inheritance but your health and their happiness.


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## eileen alana (16 May 2008)

principle1 said:


> Thanks for your offer of help Brendan I will put the information together and give e-mail you the information and thank you to very much to everyone who has sent in a quote and advice on my current situation I really appreciate your kind words and advice and will arrange to contact MABS.


 


Good luck and hope it all works out for you


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## The Edge (16 May 2008)

Principle1,

If you sell the house, you can clear mortgage and other debt and still have plenty of cash left over to fund rental payments.

I am only suggesting this as a potential option.


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## Maid Upname (23 May 2008)

principle - gosh i think that idea of freeing up the equity on your home and renting from the interest without having any loans sounds pretty stress free ! ... having said that how easy would it actually be to sell in this current market ?
One thing i did want to say is that 87k for a mortgage is bliss ! id love to have a small mortgage like that - youre working now so its manageable ?? its more then likely the other loans that are crippling your monthly outgoings vs incomings.
i wish you well personally too - seek advise about your feelings - just remember your little girls and loving wife and remember they need YOU not the inheritance ! ....
nothing can replace a dad - when they have their children they dont want to tell them about the kitchen or the living room theyll want stories about you what you said and what you did with them x


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