# Widowed and unsustainable mortgage - advise needed



## ally_f00 (17 Feb 2015)

Just looking for advice in May 2012 i lost my partner and unfortunately we let the mortgage protection lapse so my mortgage of 350,000 was not covered with bank of scotland... I am now a single parent to a 3 year old. I paid the mortgage for the 1st 3 months but then stopped paying it in sept 2012 and havent paid it since as simply couldnt afford to he was the main earner.. I got a letter to say my mortgage has been transfere to start mortgages.. When we originally took out the mortgage he was the main earner and the mortgage was roughly about 1100 a month and he paid it as the mainer earner.. i am self employed and earn less then 18k a earn combined with single parents allowance.. So on this income cant afford the current morgage realistically.. I am just looking for advise what my best options are?? i presume start will start issuing repossesion so my best option would be to volantarily surrender the house?? I would think they would get about 22000 due to negative equity so leaving a balance of 130,000... What are my options after this??? bank writedown?? personnel insolvency?? or bankruptcy?? i would really appreciate the advise as i really dont know what to do and what my best option would be?? if i agree to volantarily surrender/sale would they give me 3-6 months to get out and find somewhere new??


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## 44brendan (17 Feb 2015)

First of all sorry about your loss!! Given your income you have no capacity to service this mortgage and therefore I would recommend the following strategy.
Stay in the property for the time being. I.e. this is rent free accommodation for the moment. make sure that you start planning immediately for your future accommodation needs. At less than 18k income you should qualify for rent supplement/social housing. However you cannot actually address this until you lose your current property. You will have to make some decisions. Given your income, you have no capacity to meet any shortfall after the property sale. You can contact the bank to agree a voluntary sale of the property if they accept this in full & final settlement. Alternatively you can stay in the property until you get a Court order to vacate. While you will be liable for any shortfall on the debt, legal action is meaningless given your low income.
My overall view would be to try and deal with the Bank as proposed by you. Complete a full Standard Financial Statement ( you'll get this on the bank website and send it to them with a proposal that you will agree to a sale if (1) they give you a minimum of 6 months to organize alternative accommodation (2) They agree to accept the sale proceeds in full settlement of the debt.


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## ally_f00 (20 Feb 2015)

great thank you for that, i do want to vacate the property and am already planning for future accomdation i just need less then 6 months to get everything organised... can i just ask should i phone start mortgages as that is who the transfer is with and say i want a volantary sale of the property if they will accept this as full and final settlement am or i better to write a letter about this with the completed full standard financial statment and ask for 6 months to organize alternative accomodation?? if they dont agree to full and final settlement i presume then personnel insolvency or bankrupcy?? i wouldnt be better to rent out the house would i??


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## Bronte (20 Feb 2015)

OP are you not entitled to state support for your mortgage based on your income.  Have the bank not contacted you about the mortgage?


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## 44brendan (20 Feb 2015)

You need to note that the above advice is general and based on the summated information included in your post. I would always recommend that it is better to go to a professional and get specific advise from someone who can get all necessary information from you and discuss the various option open to you. Whatever action you take it is important that it is the best one relating to your specific circumstances.


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## 44brendan (20 Feb 2015)

Bronte said:


> OP are you not entitled to state support for your mortgage based on your income. Have the bank not contacted you about the mortgage?


Mortgage interest supplement relief is now gone Bronte!


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## ally_f00 (20 Feb 2015)

no im not sure if i am entitled to state support on my mortgage i remember when he first died i went to them and they said the mortgage would have to been in arrears for a year... i was with bank of scotland and no they have very rarely contacted me but now they have done a bank transfer to start mortgages.. There was a debt in service benefit for a little amount wouldnt even pay the full mortgage but as i wasnt married that went to my next of kin my daughter so i cant even touch that to help my situation


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## Bronte (20 Feb 2015)

So currently the bank are so tied up with the transfer to start that they have left you alone.  And apparently there is no state support.  So it would seem best that you use this time of peace from the bank to plan your exit strategy.  Ideally being one where you walk away from this and the bank will not chase you, which based on your income would be pointless.  Your strategy then is that the bank want you out, peacably, and your're willing to do so, and you should in exchange get a letter of 'full and final settlement'  - you must have it in writing.  Best of luck this can not be easy.


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## ally_f00 (20 Feb 2015)

yes u must be write they have left me alone inital the trustees asked the bank to help me out due to the situatuon and do a deal and they were going to give them the trust so my child could have a roof over her head but bank of scotland wouldnt help, like a debt write down and when they wouldnt help the trust put the full trust in her name.. so yes perhaps ur right as they knew they were transfering the debt i think they knew it was a lost cause.. i keep thinking to myself is there perhaps a better stragegy like rent out the house?? just with it being our family home and all the memories i was thinking over the last day would it be better.. But then again the mortgage is 350k, house probably only worth 220k, rent probably get 1000 and i reckon with arrears mortgage would be at least 1100/1200 so am i hanging myslef doing this?? am i better to just walk away??


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## Gerry Canning (20 Feb 2015)

Bronte said:


> OP are you not entitled to state support for your mortgage based on your income.  Have the bank not contacted you about the mortgage?


Ally;
Sorry about your loss and it is sad to see you in this pickle.

I am with the comments as given.
I have a few queries for you.

In your thread you have not said that Start have initiated any Repossession/sale letters.
That means the clock has not yet started.
I would be very surprised if any real enforcement will take place within 6 months.
What this means is you have at least 6 months+ to make arrangements for your own life.

Suggest.
1. Get your arrangements largely in place before committing to Start.
2. By all means then do contact Start but ENSURE only in writing, do not get locked into phone calls.Keep copies of everything.
3. Advise Start of your position, it will be obvious that you are in unsustainable debt.
4. Take your lead from them ,do not try to second guess them , they are used to this eg if they accept voluntary surrender and accept surrender of house in full and final settlement , that would be good.{again everything in writing}
5. They will probably require Standard Financial Statements (SFS) etc , give them everything reasonable that you can.

I would think at the end of it Start should accept voluntary surrender/sale  as the
pragmatic sensible solution.
From what you say there is no point in them chasing you into Bankruptcy etc.

I know it is a huge worry for you but please remember its only money !


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## ally_f00 (20 Feb 2015)

hi gerry the transfer date only went through today so nobody has been in touch at all i only got a letter last week that the transfer date was going through on the 20th and i was originally told in october there would be a transfer but to lone star and now its start mortgages.. so a bit confusing.. i have somewhere to live but i just need 6 months to get it all organised so im just worried they might start repossession etc.. i would hope they would accept it but i havent had a easy life so that is why im worried they wont accept sale and full and final settlement..


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## Gerry Canning (20 Feb 2015)

ally_f00 said:


> hi gerry the transfer date only went through today so nobody has been in touch at all i only got a letter last week that the transfer date was going through on the 20th and i was originally told in october there would be a transfer but to lone star and now its start mortgages.. so a bit confusing.. i have somewhere to live but i just need 6 months to get it all organised so im just worried they might start repossession etc.. i would hope they would accept it but i havent had a easy life so that is why im worried they wont accept sale and full and final settlement..


Ally.
From your post no-one has even yet had a proper look at your case.
(so today the only one worrying is you)
From your post , your case went to Lone-Star , now to Start , so you are not on their radar yet.(so today the only one worrying is you)
From your post you do not have any more money to give them.
(means the worry is on them ! in how do they cut their losses)

You are correct.
1. They may start Repossession, think about it;
 that will take more than the 6 months you need.
By a possible Repossession time ,you will be gone , they have the house.
2. With anything like luck for you , Start will, on checking your circumstances take the house as full and final settlement.
3. Be as open with Start as you can, remember it is very much in their interests to get closure. 

Even if Start got narky , and I do not see it, there is no profit for them in chasing you for shortfalls.
 What effect would even an unlikely Repossession  have on you.Remember Repossessions are expensive for lenders.
From what you say, even a repossession will have LITTLE EFFECT.
Again it is only money , so unless you win the Lotto ,Start/lonestar or whoever will be forced to sort this.
Hope this helps.


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## 44brendan (20 Feb 2015)

As Gerry said, you will have at least 6 months to sort yourself out. Make sure that you do not agree to leave the property before this due to pressure from START. They should be more than happy to agree a FFS with you on these terms. If they are not, then they have no capacity to get any further funds from you given your circumstances.


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## ally_f00 (20 Feb 2015)

great thank u for all the posts i will contact them do the finanical statement agree to sell the house for a full and final settlement and get everything in writing and keep copies


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## elcato (20 Feb 2015)

Why not wait till Start contact you. Just concentrate on getting your self organised for an exit in over six months for now. Let them instigate the proceedings.


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## Gerry Canning (20 Feb 2015)

Agree 100% with elcato.


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## 44brendan (20 Feb 2015)

elcato said:


> Why not wait till Start contact you. Just concentrate on getting your self organised for an exit in over six months for now. Let them instigate the proceedings.


+1


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## demoivre (20 Feb 2015)

OP get help from IMHO. Even if Start began legal proceedings against you tomorrow there's not a hope you will be forced out of the house in 6 months  !


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## ally_f00 (20 Feb 2015)

ok just so i can get this straight in my head i dont contact start or engage with them until they contact me so leave everything until they make contact?? and just out of curioisity if they were to began legal proceedings would the cost of it not be put on me as that is something i definitely cant afford.. if they start repossesion which i dont want to go down that road does the cost not go down on me?? and it would take them at least 6 months to get me out right?? what is imho??


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## Gerry Canning (20 Feb 2015)

Ally;

The consensus is for you to
1. Sort your accommodation first.
2. Wait until they contact you , by that stage you have 1 sorted.
3. IMHO Irish mortgage holders organisation , they help people in mortgage difficulties.
4. Yup it would take @ least 6 months to Repo.
5. Yup they could put cost of Repo onto you.
If they do , so what ? you cannot pay it and won,t go to jail for it , so please do not worry.

When they get round to contacting you give them the honest story.
Good luck.


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## ally_f00 (20 Feb 2015)

ok great someone actually gave me a contact number or irish morgage holders a month back but i thought they only dealt with personnel insolvency but great thank you for all your help. I have *the accomodation

* sorted will be ready in june/july so just wanted a bit of time so i will need less then 6 months.. thanks again for all the advise


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