70 year old couple with €500k mortgage on €1m home.

Is there any problem with the OP providing a link to the properties that his in-laws are trying to sell?
 
Bateman said:
I genuinely do not think that they're looking for the sun, moon and the stars. They do not want to sell their home and they have assets which are on the market and should realise sufficient cash to clear the mortgage in full.

We're in dire economic times at the moment and it's nuts in my view to sell valuable assets in what's clearly a buyer's market.

All they're saying is that they won't firesale their assets.

Too many people say "sure just sell your home" when pensioners hit a speedbump or have difficulty paying property taxes. It's not easy for someone to be forced to sell their home. These people have been very good customers of the bank over the years so asking for a little wriggle room is not unreasonable.
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Well it sounds like they want the sun moon and stars, or at least they want the bank to agree to their demands rather than negotiating. They can quite clearly afford to do as they are contractually obliged to do and that is pay off their home loan. If the bank is open to negotiation on the time frame on this then fair enough. But have the borrowers in writing given the bank a time frame for selling the spanish property. When exactly was the capital on the homeloan due to be repaid?

And not just for your benefit, but for everybody, a good relationship with a bank even a long standing one means nothing. It's business.

I hope the above doesn't sound too unsympathetic, it's not meant to be.
 
As regards looking for another year to sell the villa with the hope of getting a higher price I just want to point out a few relevant facts without breaking the rules of speculating on property prices.
The Spanish economy has the following problems.
A huge over supply of property in all sectors,
An unemployment rate of over 26%
Falling wages,
Rising property taxes,
Rising personal taxes,
Low rental prices,
Falling tourism numbers
Difficult to obtain a mortgage.
All of these problems are expected to get worse before they get better.
Look at above and draw your own conclusions. Like everything else you need to pitch the price ahead of the curve not behind the curve. I think your parents-in -law had a good idea a year ago of the problem that is now being discussed but thought things might get better. No ill will intended in my post.
 
What is the bank losing out here. Interest on the capital payments above the interest only payment? Can some deal be worked out around that.
 
Again to repeat my previous post, these clients are entitled to the protection of the MARP process, whatever the Bank or other posters may think in respect of allowing them flexibility to sell the properties abroad. Just advice them to approach their Bank on this basis. If the Bank refuse they are entitled to appeal.
 
I totally forgot about Marp, that's a very good point. That will give them plenty of time to sell (if that's a good thing we cannot debate)
 
I am confused by Brendan's repeated references to MARP which gives the impression that by applying for MARP one gets an automatic stay of repossession. i.e. it can be used by those who won't pay rather than those who can't pay.This is not the case.

MARP process is designed basically for those who have trouble paying -or, to be precise, it is a process designed to ascertain if, how and when a borrower can repay the debt -and after masses of questions a solution/compromise is reached.
During the process and assuming the borrower is fulfilling the requirements the lender must hold off for twelve months.
But if the borrower is not fulfilling the requirements (delaying response, making false declarations etc) then ,basically, the MARP process is nullified.

Also, if the borrower were to declare that he/she could more quickly repay the debt but doesn't want to because he/she can make more money on his investment in a year this would be grounds for the lender to disregard any time-limit and move ahead.
 
Having followed the postings on this subject I would consider that this case would be an abuse of what MARP was intended to do.
 
In response to Old Nick. Yes you are correct that the borrowers must co-operate. However, all indications from the OP are that the borrowers are co-operating. There is no inference in the actions of the borrowers that they wish to hold off on the sale of foreign owned properties for an unreasonale time. Having first hand experience of MARP from a bank's perspective, my opinion (based on the summary of the debtors actions as outlined by the OP being an accurate presentation of the facts) is that they are preapred to deal with the facility, but are refusing to be rushed in to a fire sale of the foreign properties. As they are covering interest payments on the facility and intend to continue doing so, this should buy them an extension of at least 12 months.
 
44brendan said:
In response to Old Nick. Yes you are correct that the borrowers must co-operate. However, all indications from the OP are that the borrowers are co-operating. There is no inference in the actions of the borrowers that they wish to hold off on the sale of foreign owned properties for an unreasonale time. Having first hand experience of MARP from a bank's perspective, my opinion (based on the summary of the debtors actions as outlined by the OP being an accurate presentation of the facts) is that they are preapred to deal with the facility, but are refusing to be rushed in to a fire sale of the foreign properties. As they are covering interest payments on the facility and intend to continue doing so, this should buy them an extension of at least 12 months.
Click to expand...

Where did you get the part in bold from? Not how I've read the same material.
 
Until now I had believed that MARPS was a process to aid those in genuine difficulties.
However, I bow to your personal knowledge and experience.

I have a different interpretation of the borrowers' actions. I believe that they are being unreasonable, but that's a personal view. My ,perhaps harder, action would be ....

Insist that they immediately advertise for sale all three properties at a price that reflects current market value in the areas concerned -mainly because all indications are that they may get less in a year in Spain than a so-called fire-sale today.

In addition, change their interest to the present variable rate of the bank. Surely no lender would continue lending at a loss when they have knowledge that the borrowers possess far more than the outstanding debt ?

Anyway, it's starting to look like I've got it in for these borrowers, so I better stop now.

P.S. Just seen Dereko's post which echoes my own interpretation of borrowers' attitude.
 
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