In Arrears with bank loans

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mchugh2008

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I have a mortgage on a property in Ireland and have other borrowings which are all in arrears now. I spoke to the bank prior to my situation worsing and asked them for a period of interest only on all borrowings. They refused without any explanation. Most of my borrowings are for property abroad. The borrowings abroad have been used to purchase property through Special Purpose Vehicles (stand alone companies) of which I am a shareholder. What can the Irish banks do in my situation. Can they repossess the Irish property, can they lock on to my shareholding in the SPV's. I need to understand the precedence and the powers of Irish banks on foreign assets and shareholdings. I'm sure this is the same for many Irish who have foreign property. Any advise would be greatful
 
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Hi McHugh2008, I don't mean to be rude but how did you manage to get yourself into this situation without knowing all the ins and outs before you jumped? Anyway, the best thing you can do is go and talk to someone from the Money advice Budgeting service.

http://www.mabs.ie/
 
It looks like you have some serious problems to deal with. Don't hide your head in the sand, get profession advice, don't delay.

The longer you leave this mess the worst it is going to get.
 
Thanks for the advice. I am really trying to sort things out quickly but when you have a bank that wont work with you its very difficult. I was willing to pay interest only for a period but the bank refused. One would have thought that paying something is better than not paying anything at all. Doesnt seem to be the way Irish banks think though. Any ideas how banks proceed with repossessing shareholdings in companies abroad and how long it takes. Any precedence cases that you are aware of?
 
I think it might be useful for others here if you posted up more details re yourself, these SPVs and the relevant countries in which you've invested, %/euro shortfall etc.

(see Moneymaker Over section)
 
UptheDeise said:
Hi McHugh2008, I don't mean to be rude but how did you manage to get yourself into this situation without knowing all the ins and outs before you jumped? Anyway, the best thing you can do is go and talk to someone from the Money advice Budgeting service.

http://www.mabs.ie/
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I don't think it is MABS role to sort out foreign property investments. MABS is about helping people to keep food on the table and a roof over their own (not their tenants) heads.
 
Maybe it is MABS I need to speak to because soon it maybe that my family and I wont have a roof over our heads.

UptheDeise, thanks for the advice. Regarding your question about how I got into this mess, I suppose I'm no different to most working class irish people, I did what most people did, looked at investing, got handed money from banks easily and now with the crisis hitting so hard, it is just impossible to meet (capital and interest) payments right now and the banks that were so willing to get money out the door, now dont want to know and dont even want to give people like me breathing space. I really dont know what their intentions are because soon a large proportion of Irish properies will be repossessed by banks it seems and what happens then? Do banks start to collapse having repossessed such a large stock of overvalued property and who then takes over the banks assets thereafter...foreign banks and then where does it go from there. I just can't understand the thought process of the banks...I want to pay money to them (interest only) but they wont accept, they want capital and interest and I just cant afford it right now...it just amazes me. I am certainly not refusing to pay but I need time to get things sorted.
 
If you owe the banks they will certainly come after you for the Irish property. As you haven't really clarified the foreign property ownership it's more difficult to say. If you said you had something in Zimbabwe I'd say the Irish bank wouldn't bother but if it was the UK they will go after it. The kind of ownership you have is very specialist, I don't think Mabs would be able to advise on this but it might help you in dealing with the Irish lender. As previous poster stated can you give us more details so that you can get better advice.
 
Thanks Bronte. The countries where I have invested through SPV's are France, Spain and Eastern Europe. I dont have any assets in the UK. The Irish property has dropped in value by at least 30%, so the current value is at least 30% less than what I borrowed in the first instance therefore the bank wont even get back what I borrowed for the irish property. I just wonder why they wont work with me and at least take interest only. Seems crazy.
Are you aware of any precedence of Irish Banks locking on to foreign property in the above mentioned countries. Are you aware of any situations where Irish banks can lock onto foreign property shareholdings? The borrowings are all unsecured apart from the Irish property.
 
I think we're all looking for more information - we cannot advise with what you've posted.
 
What exactly do you own, what is it's value, where is it, what interest rate are you paying, how much do you owe, who do you owe the money to......................
 
Bronte said:
What exactly do you own, what is it's value, where is it, what interest rate are you paying, how much do you owe, who do you owe the money to......................
Click to expand...

Thats got nothing to do with original query. Thats just nosiness! He wants to know if Irish banks can latch on to his foreign assets on the back of unsecured loans. The simple answer is that they can't without getting a court judgement against you but once that judgement is obtained, they can force you to liquidate or seize assets. No idea how long a legal process that would be. Obviously they can take the Irish property where there is a loan secured against it. How long this takes depends on the lender.
No lender that I know of will let you go interest only on unsecured borrowing so its no surprise that they refused you.

I am not sure what sort of structure you have invested in but it sounds similar to a property fund. Is there any way you can liquidate your share even if you have to realise a loss and begin to pay down your debt.
To be honest, it is unlikely the Irish Banks can seize any actual property abroad as it sounds like the SPV owns the property, not you. They can go after your shareholding in the fund/spv though (and all your other assets).

You really do need to get proper legal and financial advice.
 
Sunny, thanks a million for your direct response. I agree with your comments and advise.
Yes, I really need to get good advice but as I haven't lived in Ireland for the last 8 years, I'm not too sure who I could talk to regarding these matter. Is there anyone who could be recommended and who is versed in this area.

Much appreciated advice.
 
Bronte, why are you looking for such information? I dont really have difficulty in giving more information but I really need to understand the relevancy of it? Please explain.
 
Aristotle25, not sure what you mean. Have I posted it to the wrong post. Please advise if I have. New to forums
 
Sounds like to me you are looking to defraud an Irish bank & are trying to research as much information as you can.
 
No, not at all..I want to work with the banks but the banks are unwilling to work with us. We have offered various payment methods but the bank are only willing to accept their terms and we cant meet these terms right now. So if anything, the Irish banks are defaulting on their customers and putting us into very difficult / bankrupcy positions. As I'm sure you will agree, no one wins, and now especially the people of Ireland who are going to take on all this debt...its an absolutely disgraceful position for the banks to take...its obvious that the bank decision maker have absolutely no understanding of their actions and the impact on the country...mark my words. The sooner the government clears out the bank decision makers and recruit professional business executives, the better.It obvious the banks are rotting with poor and bad management.
 
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