# Advice on Proposal to the bank.



## Dman35 (8 Feb 2012)

Hi, 

I'm currently thinking about approaching my bank with the following proposal and would be very interested in getting people's feedback on it and if they felt it was realistic. 
AS from reading a number of posts I can see BOS are trying to exit Ireland.

My Bank is Bank of Scotland Ireland 
Mortgage - Tracker within 1.5% of ECB. 
Original Mortgage - 240,000 taken out in late 2004. 
Left to Pay - 185,000
Value of House - 160,00 / 170,000

  I have been paying back roughly €1,100 per month (which includes interest and princpal) so that means I've paid the bank roughly 96,000K (1,100 * 12 * 7.25) 

So planning on offering the bank another 100,000 / 125,000 as full and final payment on the mortage.

Does this seem a realistic proposal? 
Means the bank would get back up to €220,000 on a 240,000 loan. 

Would this in any way effect my further Credit worthness??

Any feedback would be much appericated.


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## 44brendan (8 Feb 2012)

If the house is currently valued 150K/160K they are unlikely to accept this offer. What you have paid them to date is irrelevant to them. What they will consider is the current outstanding balance & the security held.
However, no harm in making the offer. They can only refuse.


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## Dman35 (8 Feb 2012)

Thanks for the reply Brendan, 

But sorry what do you mean by "outstanding balance & the security held"

Cheers


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## Jonny (8 Feb 2012)

BOSI are very amenable to offers like this at the moment  CERTUS are currently handling all their Irish administration  Well worth giving them a ring & gettind to meet with their rep.  Their contact details are on Certus.ie


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## 44brendan (8 Feb 2012)

Dman35 said:


> But sorry what do you mean by "outstanding balance & the security held"


 
You are proposing to offer 1100/125K on outstanding loan of 185K. The bank hold a house as security valued at 160/170K. I.e. you are offering them 125K for a return of your house valued at 160K min. Looks like a poor deal for them, but no harm in trying!


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## cgc5483 (8 Feb 2012)

Dman35 said:


> Hi,
> 
> I have been paying back roughly €1,100 per month (which includes interest and princpal) so that means I've paid the bank roughly 96,000K (1,100 * 12 * 7.25)
> 
> ...



You may have paid them ~96,000 but only from your own figures 55,000 of this was capital.  They were paying interest on the loan so while they only lent you 240,000 it cost them more than that.

Your asking them to write off alot anything from 60-85,000 on a loan of 185,000 so quite a large discount. Can't see it happening especially if you are keeping up with repayments


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## Dman35 (9 Feb 2012)

Thanks for the feedback folks.. 

As you say it's well worth a call anyway and might start the ball rolling so we can come to agreement that works for both parties...


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## FTBtracker (20 Mar 2012)

Hi, Interested to hear how it went with your proposal? There needs to be a lot more post-resolution colour on this site. Seems to be mostly pre-resolution discussions generally...


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## MarieM (21 Mar 2012)

FTBtracker said:


> Hi, Interested to hear how it went with your proposal? There needs to be a lot more post-resolution colour on this site. Seems to be mostly pre-resolution discussions generally...


 
That is because in a lot of these cases where proposals involve write-off, "resolution" requires the signing of confidentiality agreements with the Bank.


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