In Arrears (mortgage) by 2 payments

Worriedman

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Around 5 months ago i fell into mortgage arrears first it was one month behind now its 2. Over the time ive made full payments but am still behind. the bank is wanting me to fill out a financial statement however Ive told then ill try to clear arrears by end of May so I dont have to do that. Im afraid of only being able to make one payment instead of the 2 that are due. Can anyone tell me what lies ahead. I dont want to do the financial statement I just want to clear the arrears but they are not giving me much time
 
Just pay the 1 month first and take it from there. Don't take phone calls on the matter, just explain to them you want everything in writing. Don't bother filling in the forms either unless you feel you are going into further arrears. Problem you may have is that you may have your credit rating marked which could affect you in the future. Wh not fill out the money makeover template here and post it up in that section so people can give some advice regarding your full situation.
 
Thanks for reply I wont fall further into arrears but I may still find myself 1 payment behind. they insist if I dont clear arrears by end of month I have to fill out this financial statement. I dont want it to get to this stage if possible
 
Why are you in arrears?

The lenders are generally easy to deal with. They will probably extend the term for you and capitalise the arrears.

If you don't want to fill in the form send in a letter explaining the situation in full. Tell them when you will have the arrears cleared or ask them to capitalise the arrears.

Brendan
 
Why are you in arrears?

The lenders are generally easy to deal with. They will probably extend the term for you and capitalise the arrears.

If you don't want to fill in the form send in a letter explaining the situation in full. Tell them when you will have the arrears cleared or ask them to capitalise the arrears.

Brendan
I'm in arrears because of a few unexpected bills they said If I can't clear the arrears soon I have to fill out financial statement and they will see about adding it onto end of mortgage. Could they just do this without filling out statement. The financial statement side feels like I'm applying for mortgage all over again and I don't want that
 
Hi Worried Man

Why not provide the information as Elcato suggested?

You should be able to cope with unexpected bills. If you have an uncomfortable mortgage, your lender will probably reschedule it for you and you can build up a small pot for unexpected bills. If it takes filling out a few forms, it's well worth it.

Brendan
 
Hi Worried Man

Why not provide the information as Elcato suggested?

You should be able to cope with unexpected bills. If you have an uncomfortable mortgage, your lender will probably reschedule it for you and you can build up a small pot for unexpected bills. If it takes filling out a few forms, it's well worth it.

Brendan
If i fill out the financial statement they said they may put the 2 missed payments to the end of the mortgage life and extend it by 2 months. Im worried if i fill out the fin statement can they ask me to sell my home over 2 missed payments? I have kept paying full payments since gouing into arrears its just im 2 behind?
 
The form I suggested is purely a form for this website not the same as the bank. I think there's some confusion. Filling it out here would allow us to make suggestions in the long term to stop any arrears again. You will have to ask your bank whether they are willing to add it to the arrears. For now I would try and pay it as soon as you can but don't forget that there is interest on the arreas as well which may not be much but would need to be addressed. Unless you can pay the whole two months and the extra small interest I think the bank will keep insisting on the forms to be filled out. If you fill out the statement on this site we may be able to assist you to divert some money towards paying the arrears quicker and stopping this happening again.
 
The form I suggested is purely a form for this website not the same as the bank. I think there's some confusion. Filling it out here would allow us to make suggestions in the long term to stop any arrears again. You will have to ask your bank whether they are willing to add it to the arrears. For now I would try and pay it as soon as you can but don't forget that there is interest on the arreas as well which may not be much but would need to be addressed. Unless you can pay the whole two months and the extra small interest I think the bank will keep insisting on the forms to be filled out. If you fill out the statement on this site we may be able to assist you to divert some money towards paying the arrears quicker and stopping this happening again.
The reason I dont want to fill out the financial statement is because they want 3 months bank statements and my bank account is littered with paddy power and im afraid they wont do anything for me to help clear the arrears. Has anybody got any suggestions to help me? thanks
 
Worriedman - this is the form that people on this site are referring to - nothing to do with banks etc... it helps others on this site, give you constructive feedback and recommendations on what to do..
 
The reason I dont want to fill out the financial statement is because they want 3 months bank statements and my bank account is littered with paddy power and im afraid they wont do anything for me to help clear the arrears. Has anybody got any suggestions to help me? thanks

That throws a different light on the situation. Can you borrow the money form a family member or else try and get part time job at evenings or weekend until the arrears are cleared. I don't know how bad your gambling is but you would be well advised to seek help for it. it's a slippery slope to be getting yourself into especially when you have commitments like a mortgage to pay.
 
Yea Ive knocked it on the head because its taking up too much time and money Im just wondering what happens when i send in statements to the mortgage crowd will they refuse to help me with arrears because of that? Im still making Full payments but have been 1 or 2 payments behind for the last 6 months. Could I fill out the financial statement and not send in bank statements? Will they just put the 2 missed payments to the end of the mortgage?
 
I can't second guess what a bank might decide but I think you need to rethink how you approach the question. Firstly, the banks have to be pro-active in dealing with arrears, collective can-kicking has not done the banks, or borrowers in arrears or the country as a whole any favours. They aren't asking for a statement because they want to personally catch you out. They are asking for a statement because they need to try and deal early with problems before they become catastrophic. On the whole it is a good thing, even if it is uncomfortable. Secondly, has the gambling contributed to the problem? In other words, if you hadn't gambled would you have been able to handle the unexpected bills? It is probably fair to guess that it has contributed to the problem but that doesn't mean that the problem wouldn't have arisen anyway. Sometimes big bills come up and we don't always have the immediate means to handle them (this is of course where savings come in, I'm guessing you have no cushion there). Thirdly, if you have truly "knocked it on the head" then that will also show in your statements. Perhaps as an additional step seek support, an ounce of prevention is better than a pound of cure. Even if the gambling hasn't become problematic or addictive yet, better to deal with it before it does. And it would demonstrate that you are taking the issue seriously and acting to resolve it and ensure it doesn't happen again. You need to be pro-active too. Another thing to consider is whether the bank actually has any incentive to force a sale at this point. Leaving aside the fact that selling costs money, if you are in negative equity, forcing a sale would be counter-productive, they would still need to arrange with you for the outstanding balance. Even if you are not in negative equity they will get more money from continuing the mortgage because of the interest you pay. Basically it may not be in their best interests at all to force a sale.

Fill in the statement anyway (even if you refuse to share it with them) and look honestly at what it is telling you. Can you afford the mortgage? How can you reasonably tackle the arrears? How can you plan to prevent a recurrence? Once you have all that in front of you then you will be better placed to argue your case with the bank.
 
Thanks for replys. without doubt gambling is the main reason why I have got into arrears. Because of this only recently I have quit gambling. What im trying to find out is what will the bank do when I submit the statement and bank statements. Ive not missed a payment in almost 10 years up to now. I can afford to pay full mortgage payments its only im finding it difficult to clear the arrears.
 
I can't answer for the bank and I doubt anyone could on the basis of the information provided. Perhaps with more specific information laid out in the standard template others have referred to, someone working in the industry might be able to make a best guess but it would still only be that. From what you are saying (i.e. can afford the mortgage, may be in negative equity, have suffered no reduction in income, etc) I am guessing they are unlikely to want to force a sale. They want the statement so they can determine if you can afford it and devise a payment plan. If you can present a costed plan to clear the arrears and demonstrate that there is additional cash that will now be used to address the arrears then you are coming at the problem from a strong position. I am guessing you are finding it difficult to clear the arrears because you are looking to clear them in too short a timescale. If you can't access the money from an alternative source to clear them immediately, identify an affordable timescale in which to clear them (over three months? Over 6 months?) Obviously they will want them cleared as soon as possible but you need to focus on getting them cleared as soon as practicable.
 
Thanks for replys. without doubt gambling is the main reason why I have got into arrears. Because of this only recently I have quit gambling.
Good call. It can be difficult to maintain so it might be worth investigating what supports are available to help and availing of those.
 
In the meantime does anyone know what way the bank will treat this? As ive said its the first 2 payments missed in almost 10 years. The man I spoke to said the worst case scenario is they will decline to help me with arrears. Im fearing this because of the bank statement details.
 
I would send them in anyway. However, if you really are that worried why not ignore/stall them for three months and then send in the statements which have no record of the gambling site.
 
I would send them in anyway. However, if you really are that worried why not ignore/stall them for three months and then send in the statements which have no record of the gambling site.
They said they need 3 months bank statements together with the financial statement in order to see what resolution they can come up with. Im sure they will give me a resolution and let me continue to pay my mortgage in full its just this is my first and hopefully my last experience of this and im worried and looking for others advice. thanks
 
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