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
Just to check, you have
- a mortgage (s?) on an Irish property (properties?) in arrears
- unsecured other borrowings from Irish banks in arrears used to buy property abroad?
- unsecured? or secured? borrowings abroad?
I think Sunny has answered your specific question regarding banks repossessing foreign assets. But I am not sure what your borrowed profile is. From above is sounds initially as if you have sizeable borrowings from Irish banks, unsecured and used to buy into foreign property via SPVs? But then you refer to borrowings abroad - so I am unsure as to whether you have money borrowed abroad as well.
Is there a specific debt that you are worried about? Is it a case of you are worried about losing your home because of your unsecured borrowings or losing your foreign assets on the unsecured borrowings?
...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.
On what loans did you look for interest only repayments? On the Irish mortgage only or on unsecured debt? What did you put together as a potential time line for repaying the capital? Did you have a business plan indicating how your approach to your business (because this is or ought to be a business)?
I must say I disagree with your assessment to some extent. I don't think anyone can deny that the banks have been foolishly "generous" in their disbursement of cash to all-comers (or near enough) but essentially we have a duty of care to ourselves to ensure that we do not borrow well beyond our long term ability to repay. Their business is to sell loans, it is their bread and butter and they have been very good at that. Too good, some would say, but we have to be good at our own business. Plenty of people didn't engage in leveraged speculation, most just borrowed for their own home, even if that was overpriced. I doubt that a "large proportion" of Irish properties will be repossessed, larger perhaps but it isn't likely to suddenly be 50% repossession rate.
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.
I think perhaps you need to start with your solicitor and a good accountant. They may be able to point you towards a specialist in this area.
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.
Its obvious you dont understand how the banks have worked and are working to sort out the financial situation. In business you work with people and give a little / take a little. The banks in this country headed by weak incapable management have absolutely no idea how to solve the financial crisis hence a change in management. I dont know if you are in business yourself or an entrepreneur, so you may not fully understand the bank procedures and the position they are taking...its certainly not good for irish business and for the irish people. Remember its the banks that have got us all into this situation and now they are not capable of getting us out of it. As for non-payment, you dont seem to understand my position which I have explained above. I have and am not refusing to pay. Simply I need the terms to be slightly changed so that I can pay but the banks are not being flexible and at the end of the day, you can't get blood from a stone. I only hope they will come to their senses soon.
Okay, I am going to say it, your posts strike me in a few ways. Firstly you seem to blame the banks for your position. You refer to their practices but do not acknowledge the part played by yourself. You seem to refer to yourself as almost an ingenue being led up the garden path by the suave bank. You responses are also quite hostile and dismissive where someone has questioned your actions or viewpoint in this. I appreciate that you are stressed and angry and from your perspective it will add very little value to go into the details. I'd tend to agree, your question was quite specific (if a bit confusing). The answer has been given. But nonetheless I think telling people they don't know what they are talking about as a response to a question that someone has taken the time to think about is a bit rude.
Secondly you say "the terms to be slightly changed" in reference to going from full repayments to interest only repayments. What you are doing there (and elsewhere through your posts) is attempting to talk down and minimise the significance of the change you are looking for. You are choosing to view it as a minor adjustment for them because it is convenient for you. In reality, especially for unsecured loans, it is a significant change to your repayment terms. Even in the "good times" there would have had to have been a reason for you to do that on a secured debt and little or no chance of doing so on an unsecured debt. Unless you are willing to understand their position and argue from there you aren't going to win. Lambasting the current management and railing against the past behaviour of your loan providers will do no good. New management in the banks will not look any more kindly on your position.
The third thing is that from your posts I am guessing you are saying that you can afford interest-only repayments on all of your debts? Will this continue to be the case over the medium term? Will you be stretched to meet that? At which point do you envisage that changing? Are you at the mercy of interest rate changes?