# Will the bank repossess after a year  if they agree  restructured repayment



## Helen19 (5 Jul 2011)

I am currently having difficulty repaying my full mortgage which is huge.  I bought in 2007.  I have contacted the bank and they have agreed to reduce my repayments by 90 euro a  month.    Last year they reduced it by 130 euro. It is still over half my take home salary.  I work in the public sector. 
I  have found the bank very difficult  to deal with.

I have a  family friend  who will negotiate with the bank for me but he feels that I need to be in arrears for them to seriously negotiate with him.  I spoke to another financial adviser and he also felt that I needed to be in arrears. 
What I want to know is if I go into arrears and  they agree a repayment with me/my friend, will the bank still repossess my home within the year?  What  is happening to people's homes who  restructure like this?

Also is there any point in applying for an interest only mortgage when I am  not in arrears?


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## Wishes (7 Jul 2011)

Unfortunatly the only way to get them to take notice is to go into arrears.  You then need ask them to restructure the mortgage and then follow up by asking them to capatalise the arrears.

If you look over previous posts of mine you will see I am in a similar situation.  I still do not fully understand the repossession end of it but what I do know is that I was threatened with repossession if I did not comply with everything they wanted during the restructure process.    

If you don't mind me saying so it seems a very small amount each month they have reduced your payments by.


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## 44brendan (7 Jul 2011)

Check out here to know your rights and the process under which each financial institution must comply with;- 
http://keepingyourhome.ie/mortgage_debt.html.en
Generally the core financial institutions are not interest in taking proceedings provided that customers are dealing with them in an open and honest manner. Individuals in these institutions may differ and in the event of you feeling that you are not being treated fairly ensure that you make a complaint to the institution and if necessary ask that your case not be dealt with by that person. Generally is you are meeting the interest payments at a minimum you should have no fear of re-posession proceedings being made.


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## Faxman (7 Jul 2011)

I am not sure what institution you are dealing with. You do NOT have to be in arrears to arrange interest only or reduced repayments. It will be necessary to set out your circumstances in detail to support your application. Most banks have a ready made form for this that lists income and outgoings and also you need to set out the reason you want revised terms.This application goes before a credit committee who decide whether to accept or reject your application. A letter is issued to you advising of the outcome of your application. Before you prepare the income and expenditure account have a detailed  look at income and outgoings by listing them. Be realistic in your approach and you will generally get a good outcome.If you have an experienced person to help you with this so much the better. Banks do not want to want more houses on their books and it a long slow process to repossess property


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## Locke (7 Jul 2011)

Helen19, as part of the amended Code of Conduct on Mortgage Arrears your Bank is obliged to help in the case of pre-arrears now.

From [broken link removed]


> ...the CCMA will now apply to borrowers who notify their lender that they are facing financial difficulties and may be at risk of mortgage arrears i.e. pre-arrears cases;


 
I would strongly suggest you contact MABS if you have not done so already and contact your Bank to discuss the problems that may be coming down the line with your mortgage..

If you engage with the bank the chance of them repossessing your house in the near furture is very very slim. Repossession would happen in the cases where no effort is made to try and address the arrears/potential arrears.

From your post it seems you are trying to so that will stand to you.


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## Helen19 (10 Jul 2011)

*Thanks for replies/Have gone to Mabs,*

Thanks   for the replies.   Just to say I did go to Mabs Last November.   They said they would act for me but that they would have to deal with more pressing/urgent  cases first.  I have contacted them a few times since but  to no avail. 
However, there is a big discrepancy between what Mabs said I was short per month and my bank.  This is my problem  If the bank  reduced my mortgage by the amount suggested by Mabs I would be fine.  But The banks reduction does not come anywhere near Mabs recommendation. 

I saw on this site somewhere,  but cannot find it now, the figures used by banks  to establish basic minimum living standards/car allowance? 
I would like to research this more.  Where can I find this information.
Once again thanks.


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