# Judgement mortgage and repossession



## dubdave50 (14 Sep 2012)

Hi there,

Hope I'm in the right Forum.

I have two Judgement Mortgages registered against me and I am in arrears on my Mortgage. I have been refused MARP even though I have proved that I can (just about) meet the interest payment each month. The refusal is based on their assessment of "my ability to pay the increased amount when the reduced payment period ends"

If (& when) the house is repossessed, does anybody know what happens to the Judgement Mortgages?


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## Brendan Burgess (14 Sep 2012)

> I have been refused MARP


Just to be clear, MARP is a process. You can't be refused participation in the process. 

They are not obliged to offer you any particular rescheduling option, but you have a right to appeal within the bank.

If you can pay the full mortgage interest every month, I would be surprised if they took any further action against you.

I suggest you fill out the Case Study format which will allow a more systematic treatment of the issue.

http://www.askaboutmoney.com/showthread.php?t=170704

Brendan


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## Brendan Burgess (14 Sep 2012)

> If (& when) the house is repossessed, does anybody know what happens to the Judgement Mortgages?



If the sales proceeds of the house exceeds the first mortgage, then the surplus will be used to pay the Judgment mortgages. 

If there is a deficit on the first mortgage, the judgment mortgages won't get paid. You will still owe the money, but their "security" will be gone.


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## dubdave50 (14 Sep 2012)

Thanks for answering my question Brendan.

You are correct. My "refusal" is actually that they are unable to provide an alternative repayment plan that is sustainable in the long term. 

Present negative equity is circa €125,000 but as my Mortgage Provider has sold their loan book, and if I apply the reported discounted price to the property, it puts the "new" provider with equity circa €115,000, so I'm expecting proceedings to begin when the dust settles.

Thanks again for your help


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## Brendan Burgess (15 Sep 2012)

I presume you are with a sub-prime lender.

I think you should fill out the case study as it would be very interesting. If you are in huge negative equity, but the new owner of the mortgage is in positive equity, you might be able to do a deal.  You will lose the house but you may end up with some cash instead of negative equity. 

Brendan


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## dubdave50 (17 Sep 2012)

I'll check the one and only piece of correspondance I received tonight and post it here tomorrow. It basically informed me that although the loan book (not the term used) had been sold everything remains the same. By party of interest, if you mean the new owner, it's Pepper Homeloans.


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## johndoe64 (17 Sep 2012)

Have you spoken to anyone in Pepper Homeloans? Seen this article online so hopefully they'll be better to deal with but who knows - best of luck.

“Our first priority is to keep people in their homes,” he said. He explained the company’s approach in situations where people were in difficulty was to look at cases individually and to try and put borrowers on a footing where they could make repayments.
That could include some element of debt forgiveness, but he stressed that borrowers should not take this as a “carte blanche”.

[broken link removed]


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## Bronte (18 Sep 2012)

Brendan Burgess said:


> If you are in huge negative equity, but the new owner of the mortgage is in positive equity, you might be able to do a deal. You will lose the house but you may end up with some cash instead of negative equity.


 
I'm totally confused.  OP had a mortgage with GE Capital and is in NE of 125K.  He still owes the full mortgage amount.  The mortgage has been sold to Pepper Homeloans at a discount.  But the OP still owes the full amount to Pepper homeloans.  GE Capital have taken the hit on the loan.  But for Pepper to make money they need OP to pay back the full mortgage not the discounted amount they paid, or would they be willing to write down mortgages to the discounted level they paid.  

How does Pepper have equity of 115K?


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## dubdave50 (18 Sep 2012)

Hi Bronte,
Excuse my math but to say I'm a tad addled would be an understatement. I worked it out like this: Original GE loan 380,000, Pepper buy @ 60% discount = 152,000. Current realistic house value 250-260,000 giving Pepper over 100,000 equity if they repossess. Hope this makes more sense.


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## valleyview (14 Oct 2016)

Hello,

Can I ask does anyone know what sort of percentage of overall debt are pepper willing to settle for. We are trying to pay off a 250K debt they took over from Irish Nationwide in order to keep our family farm. We want to make them an offer but need to know whats a realistic amount to aim for? 

Thank you in advance


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