# Got bridging loan of €400k from CU house 3/4 complete "Cabot Financial" are on to me.



## paddy bb (22 Jul 2010)

hi there first post looking for addvice

I got a bridging loan from credit union to build my own house with a view to getting a mortage. 

Three years later house is 3/4 built and cant get mortage. I have beening trying for about a year and a half. 

Both myself and wife are working  and were renting a house for €700 euros a month. 

I have told the credit union the story we want to live in the house but cant get money to finish it or pay them back. 

I have now told them that we will try to sell the house to just pay them back but house not finished so will only get around €180k to €200k.

I have offered them the keys of the house they said no.

Today in the post i recieved a letter from Cabot Financial looking for full amount. 

any ideas on what to do? 

We could service a mortage of about 300,000.
                 thanks


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## z107 (22 Jul 2010)

Could you even get one room finished so that you could live there while you finish off the rest of the house?


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## Slim (22 Jul 2010)

I think you need to get back into talking with the credit union to try and work out some kind of payment schedule. Also, i think the debt collectors are trying to bluff you. Make sure the CU have written off your loan so that interest stops accruing. I think they should have.Any point in talking to MABS? Slim


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## paddy bb (23 Jul 2010)

I have been working away myself at doing jobs but need about €40,000 to be finished. 

I have two kids and one room would not be safe for them. I have asked the credit union about paying money to them but it will only pay some of the intrest so it will still keep building and will never finish the house. 

How could mabs help ?

Thanks


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## Sandals (23 Jul 2010)

may be of no help to you at all but we lived in mobile home for year before starting building, took six months to build once started and saved a ton of rent, plus sold mobile for more than we paid for it due to additions we made to it to make it more comfortable. very easy to set up just need electricity water and waste, never got pp as not permanent. bit embrassing but five years later really glad we did it (had one kid at the time too and she loved it).


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## Marietta (23 Jul 2010)

I am very surprised that a Credit Union would lend that much money for a mortgage, I always assumed they did smaller loans.

I think the mobile home is a good idea also try and get a few rooms such as the kitchen, bathroom and 2 bedrooms in some sort of basic order so you can move in and save on the rental expense. Lots of people do this and there is no excuse why you can't do it.


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## Slim (23 Jul 2010)

paddy bb said:


> have asked credit union about paying money to them but it will only pay some of the intrest so it will still keep building and will never finish the house . what why could mabs help
> thanks


 
If it goes to court, CU will have to demonstarte that they tried to come to an arrangement with you. I repeat - they can write off your loan and thus stop interest accruing!! This would be helpful to you in that you can start paying off the debt. You should approach them about this as they may be reluctant to let you know this.

MABS are a state agency for people in financial trouble. You never know, they may be able to advise you. Slim


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## VOR (23 Jul 2010)

Hi paddy bb, sorry to hear about your position.

I am just wondering if the CU have security against your home? You say you have a bridging loan. Did you engage a solicitor to sign this and give the the credit union a charge?


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## Tessi (23 Jul 2010)

Hi slim

I am sorry to jump in here because i don't have anything to add but am interested in some thing you said.  You said the credit union can write off the loan and stop interest. Just wonder should the same apply to banks.  I have an overdraft and loan with boi but they are refusing to negocaite a repayment because any repayment I can manage at the moment would not cover the interet they are putting on top each month.  any thoughts?


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## mf1 (23 Jul 2010)

Tessi

I think you are confusing things a bit. Technically, any lender can simply write down or write off any of the debt due by anyone to them anytime. But that does not make any economic sense - they may as well just give a present of the money to the borrower rather than a secured loan. 

mf


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## Slim (23 Jul 2010)

Tessi said:


> You said the credit union can write off the loan and stop interest. Just wonder should the same apply to banks. I have an overdraft and loan with boi but they are refusing to negocaite a repayment because any repayment I can manage at the moment would not cover the interet they are putting on top each month. any thoughts?


 
Sorry, I can't say how the banks operate in a similar situation. Slim


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## Steve D (23 Jul 2010)

One thing that I really don't quiet follow is that you say that you can service a mortgage of €300,000, so why did you borrow €400,000? How were you expecting to repay the extra €100,000?


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## paddy bb (24 Jul 2010)

at the time of getting the loan i was making alot more money and would have been able to service a bigger loan , i didnt borrow 400,000 it has buit to it 3 years at 7% intrest . the credit union have a charge on the house also .


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