Mortgage situation story on The Frontline,May 23rd 2011.

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thedaras

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I watched the Frontline on RTE last night where a woman told her story,about how she had bought a house had a big mortgage ,was able to pay it for two years,then with all the budgets etc,she could see that in time,she would struggle to pay the full amount.

She said she spoke with the bank several times to see what could be done about this future scenario,but they refused to have a meeting with her.(presumably because they seem to want to wait until the situation actually occurs ).

What I found striking about this is that she went on to say that her situation has got to the stage where she cant afford the original repayments and has STOPPED paying her mortgage altogether!

She said she has had NO communication from the bank for months..

Obviously we dont know all the story,but it is striking that someone can just decide not to pay anything at all,not even the portion she can afford and by the way she is still working!

Will this lead to others following suit? If not ,why not?
Say you had a number of bills on a particular month,can you then just not pay your mortgage?
 
It seems astonishing that this can occur alright. I know of people who were advised that if they stopped paying their credit cards altogether a deal would be done with them but if they continue paying the minimum payment nothing will be renegotiated. Seems an all or nothing approach!
 
thedaras said:
Say you had a number of bills on a particular month,can you then just not pay your mortgage?
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Of course you can, however you have to deal with the consequences of your actions, which ultimately (after a couple of years of making inadequate payments) could result in the house being sold from under you by the bank on foot of a court order for possesion
 
I would have thought that a court would NOT rule in favor of the bank though ,if a person has evidence of trying to come to a solution with the bank and more importantly that the bank had not made ANY contact with the person in arrears..

I would imagine that an order for possession would only be granted after negotiations with the mortgagor and mortgagee..which effectively means that technically it could happen that someone could get away with not paying and then coming up with a solution..

Just saying..its a worrying development,and I wonder how many others are going to follow suit..

Of course as Mspox posted may happen ,however there are many who are trying to sell up but cant and maybe glad to get rid of the house..
 
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I know someone in similar circumstances. They acted exactly as any responsible person would. They notified their bank of their financial problem (caused by the illness of one of them). Attended a meeting at the bank with all their financial information. Asked for payments to be rescheduled to interest only for a period of time. Called and wrote numerous times, trying to get someone to talk to them. Told by local guy in branch office that there was nothing he could do - he was not even allowed to ring the decision makers in the Dublin Office, would had to go through Area office even to ask a question. Request was refused 12 weeks later. No reason given. Very distressed borrower asked on the phone "if we don't qualify for rescheduling, who does?" Was told that a single mother who couldn't feed her children might qualify. Swear to god - I was there for the phone call! They struggled to pay for another few months until all savings exhausted, then stopped paying. No contact from the bank for three months. Then standard notice of arrears. Two months later got a phone call, now it is agreed that they will pay interest only for 12 months.

LMAO when I hear about banks being pro-active in dealing with customers in difficulty.
 
If you are paying the minimum payment to a bank they will never do anything for you. We've had many of these cases on AAM. Banks will only deal with you when you stop paying, generally when you've used up all your savings (hide your savings under the mattress or in another bank for the rainy days). Then they will assess you and then they will come to an arrangement. This they are doing. I know of two arrangements myself (one got advice on AAM) where the banks are being 'easy'. One of these kept some savings in the kitchen cupboard, literally for medical bills in relation to ill children.

Kate that attitude and what that bank staff member said to your client is shocking. If it had been me I'd have taken the phone and given the bank staff member a word. The way they talk down to people is dreadful.

What's LMAO?
 
Laugh my &ss off! Agree with everything you've said bronte, seems the only approach to take.
 
I know it's more expensive (in the short term) but if I ever ran into difficulty I would engage my solicitor first and have him attend and minute the meeting with the bank. All correspondance from and to me would be directed via my solicitor. That way if it ever went to court you have your legal stuff in order and solid proof you tried to come to an arrangement at the very beginning.
 
1. If you can't afford to pay your mortgage what Solicitor would take on the work in the knowledge they may not get paid?
2. If you can afford to pay a Solicitor why can't you pay your mortgage?
 
Howitzer said:
1. If you can't afford to pay your mortgage what Solicitor would take on the work in the knowledge they may not get paid?
2. If you can afford to pay a Solicitor why can't you pay your mortgage?
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Generally you know in advance if you can't afford your mortgage...you'll deplete your savings first. Before all the savings are gone put some money aside for legal fees. If you do end up going to court to fight for your house you'll need a solicitor in this case anyway. The only extra expense here is to get the solicitor to attend the meetings and forward letters on your behalf...not sure it would be too expensive and you could arrange a pay as you go arragement with the solicitor for same. Anything this big and important I would have my solicitor involved from day 1.
 
Bronte said:
If you are paying the minimum payment to a bank they will never do anything for you. We've had many of these cases on AAM. Banks will only deal with you when you stop paying, generally when you've used up all your savings (hide your savings under the mattress or in another bank for the rainy days). Then they will assess you and then they will come to an arrangement. This they are doing. I know of two arrangements myself (one got advice on AAM) where the banks are being 'easy'. One of these kept some savings in the kitchen cupboard, literally for medical bills in relation to ill children.

Kate that attitude and what that bank staff member said to your client is shocking. If it had been me I'd have taken the phone and given the bank staff member a word. The way they talk down to people is dreadful.

What's LMAO?
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It is disgraceful that people have to do that. What is the bank's idea of the minimum you can afford? Literally what's left over after the groceries and ESB bill? No money allowed for medical bills or other unexpected expenses?
 
liaconn said:
It is disgraceful that people have to do that. What is the bank's idea of the minimum you can afford? Literally what's left over after the groceries and ESB bill? No money allowed for medical bills or other unexpected expenses?
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You've been on here a long time, the banks are vultures. They are not interested in people or life or medical bills. All they are interested in is allowing people the very bare minimum to live on. See what the bank said in Kate's post. That would be mild. The only reason the banks have any manners at all is that 'some' of their behavour is being commentated upon by judges and the regulator seems to be being more proactive


In the case I'm talking about they are doing fine. The worst in relation to the banks , for now, is over. Kids are fine, onegoing issues. But there is a ticking time bomb in Ireland in relation to the banks. The banks will wait, they are only biding their time. There are hints in the papers, Mick Wallace paying 20% interest, people going to court with a mortgage in arrears but the costs and interest amounting to multiple of that, Master of the High court mentioning suicide etc etc Figures of arrears being massaged.
 
Bronte said:
You've been on here a long time, the banks are vultures. They are not interested in people or life or medical bills. All they are interested in is allowing people the very bare minimum to live on. See what the bank said in Kate's post. That would be mild. The only reason the banks have any manners at all is that 'some' of their behavour is being commentated upon by judges and the regulator seems to be being more proactive


In the case I'm talking about they are doing fine. The worst in relation to the banks , for now, is over. Kids are fine, onegoing issues. But there is a ticking time bomb in Ireland in relation to the banks. The banks will wait, they are only biding their time. There are hints in the papers, Mick Wallace paying 20% interest, people going to court with a mortgage in arrears but the costs and interest amounting to multiple of that, Master of the High court mentioning suicide etc etc Figures of arrears being massaged.
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I know. Its depressing to think about. If the culprits were in jail it would make it a bit easier to swallow. But no, they're still living the high life and people who have lost their jobs and done nothing wrong are being made to feel like criminals because they can't afford to pay the mortgage. Not to mention being quizzed about every little bit of their expenditure. How dare they go to the cinema, or buy a bottle of wine. Everything but the essentials must go to the bank. Leave the wine and nights out for Fingleton, Drumm etc :mad:
 
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