# help us please need advice pepper want to reposses home



## ruairi mccarthy (13 Apr 2016)

Hi All
sorry for this long winded question

house bought for 225000 (2007)
house now worth 120000 euro
arrears 28405 euros
mortgage balance 219665 euros
repaying 1365 p/m

we need some advice on what to do next  ill start at the start
we bought a house in august 2007 4 bed  for 225000 euro in kells co meath with the help of GE Mortgages

we both had had good jobs  had hoped to get married and have a few kids .That all changed in june 2009 when I got left go . electrician by trade,  thank god she still has her job but has taken pay cut after pay cut I had dole for 9 months and then that ended then we started to fall into arrears  we also a 20000 euro car loan courtesy of aib bank now paid off

I have had plenty of jobs between then and now but they have all been cash in jobs earning average 45 to 50  per day at most and I have applied for every job under the sun

we have been in the MARP Process since 2011  currently her income 2300 euros per month and we have been making 75% of our payments   not good enough as
we received a letter yesterday to say they are going to repossess house in 3 months  we are now outside the MARP process as we missed our last 2 alternative payments by 200 euros   as she was in hospital  pepper don't care they just want their money

mortgage has already been extended  and we do not meet the criteria for a split mortgage

PLEASE HELP


----------



## Brendan Burgess (13 Apr 2016)

OK, the first think you need to do is to think whether you want to keep this house or not. 

I am not clear on what you are actually paying. Are you actually repaying €1,365?  or are you paying €200 per month.

The big advantage of Pepper is that they may well do a deal with you to write off the shortfall if you agree to the voluntary sale of the house.

If you are paying €1,365 per month at the moment, then you should be able to rent for cheaper. If you are paying only €200 a month, and even then, for only some months, then you won't be able to get anything cheaper.

But if you can get out of that mortgage, with the shortfall written off, it would be a good outcome.

The alternative would a Personal Insolvency Arrangement. But if you are paying only €200 a month, you will not get a PIA.

Brendan


----------



## ruairi mccarthy (13 Apr 2016)

Brendan Burgess said:


> OK, the first think you need to do is to think whether you want to keep this house or not.
> 
> I am not clear on what you are actually paying. Are you actually repaying €1,365?  or are you paying €200 per month.
> 
> ...


Thanks for the quick reply 
Of course we love to keep the house and yes we are TRYING to pay the alternative payment of 1365 p/m at 7.1%. Last month (march)we paid £1250 and the month before (feb)was 1295 for the month
We are also paying house insurance at 32 p/m and life insurance at 80 p/m 
Problem is we have more money going out on bills then coming in 
Basically we have 2308 euros coming in and 2595 euros going out  hence the arrears
THANK YOU


----------



## Protocol (13 Apr 2016)

Your life cover is way too dear.

I pay 100 per year for a 20 year mortgage.

Get a quote from www.labrokers.ie for a new, simple mortgage protection policy.


----------



## Protocol (13 Apr 2016)

You would think there is work in Navan or Dublin for an electrician??

Navan is 15km approx from Kells, very regular buses.

But I suppose there's very little new building going on in Kells or Navan.


----------



## Brendan Burgess (13 Apr 2016)

Hi Ruairi

If you are paying that amount, here are your options 

1) Sit down with Pepper. Offer to sell the house if they write off the shortfall. This gives you a fresh start and you should be able to rent a similar house for what you are paying for the mortgage. 
2) Consult a Personal Insolvency Practitioner. Based on what you are saying, you can go for a PIA.  That might write down the mortgage and let you keep the house. However, it will probably be vetoed by Pepper.
3) Tough it out. Keep paying around €1,000 a month. It's very unlikely that Pepper will succeed in getting an order for possession. If they do so, it will take them some years.  By the time they get an order, if they ever do get an order, there is a slim chance that house prices may have recovered.  That is unlikely and I think a proactive strategy is better. 

In any event, cancel your mortgage protection insurance immediately. This protects you against the very small chance that one of you dies.  But there is a much more real probability that you will lose your home.  Pay the money saved against your mortgage. 
If one of you has a very serious illness, then you might not want to do this. But otherwise, this is a waste of money. 

You should also make an appointment to see MABS.  

Brendan


----------



## TLO (13 Apr 2016)

Hi Ruairi

First thing is not to panic.  House repossessions, especially owner occupied ones, take a long time.  There are many examples of where nothing, yes nothing, has been paid in over 5 years and the house still hasn't been repossessed.  Pepper are just trying to get more money from you.

Noting you would both "love to keep the house" answers the first question.  You both would like to stay put, so that is what is going to happen.

A mortgage interest rate of 7.1% is way too high, not sustainable, and part of the problem.  You are going to need professional help in negotiating a solution with Pepper, probably from a Personal Insolvency Practitioner (PIP).

Daft.ie currently has three houses to rent in Kells, the most expensive being €1,000 per month.  Taking the most expensive as a guide you could just pay Pepper €1,000 per month on an interim basis while you seek professional help.  A PIP can put a formal proposal (Personal Insolvency Arrangement (PIA)) to Pepper that would keep you in the house, and make the mortgage sustainable.  Other posters on this site might be able to suggest a PIP if you want to go this route.

You are unlikely to be able to sort this out by yourself, but with professional help this can be resolved whilst keeping you and your family in your home.

Best wishes.


----------



## TLO (13 Apr 2016)

Okay, I just cross-posted with Brendan.  I see that we both mentioned €1,000 a month as a possible figure to pay.  Also want to make the point that if Pepper veto the PIA your PIP can probably ask a judge to over-turn the veto.  The word "on the street" is that a stack of "over-turn the veto cases" are about to be brought to court.


----------



## Jim Stafford (13 Apr 2016)

Brendan Burgess said:


> Consult a Personal Insolvency Practitioner. Based on what you are saying, you can go for a PIA. That might write down the mortgage and let you keep the house. However, it will probably be vetoed by Pepper.



As it is clear that the mortgage was in arrears as at 1 January 2015, Pepper  might be able to veto the PIA at the creditors meeting, but on "Review" to the Circuit Court the judge could over rule Pepper's veto and implement the proposed PIA, provided it fulfilled all of the criteria.  Other detailed postings have been made about such  a process.


Jim Stafford


----------



## Brendan Burgess (13 Apr 2016)

Jim Stafford said:


> Pepper might be able to veto the PIA at the creditors meeting, but on "Review" to the Circuit Court the judge could over rule Pepper's veto and implement the proposed PIA, provided it fulfilled all of the criteria.



I had meant to make that point.  So this would be the first avenue to investigate. Apply for a PIA. Appeal it if they refuse it. 

If the appeal is rejected, then make a decision then on what to do. 

Brendan


----------



## ruairi mccarthy (13 Apr 2016)

Thank you every body for being so  helpful
This is a fantastic website . Going to ring MABS in the morning and go over our options with them  and may go down the personal insolvency route as that seems to be our only /best  option. 
As for work TRUST me I have tried everything & had umpteen interviews but just cant seem to get my leg in the door 
 Ill keep ye posted and thanks so much again


----------

