I have a friend who has asked me for advice re their mortgage arrears but I really don't know what advice to give so I thought I would post the story here. They purchased their home and an investment property in 2008 in contemplation of marriage. Unfortunately the relationship broke down and my friend was left with the intended home and the former partner the investment property (luckily neither mortgage was joint so the split didn't cause any legal issues as both properies of equal value).
My friend lost their job in 2009 and rented out the house to survive as they did not get social welfare. The mortgage fell into arrears. The tenants virtually destroyed the house and when the time did come when the mortgage could possibly be serviced the money instead went towards fixing the house.
Over the course of the mortgage repayments have only been made about 35% of the time. The house is worth about €200k and the arrears are €40k. The mortgage is the last of the good trackers. My friend's financial situation has improved in recent times and he is at the stage where he wants to do a deal with AIB. I do not understand why they have not repossessed the house at this stage in the absence of communication but it seems they are still open to suggestions. My friend overall would like to keep the house. Does anybody think there is any possibility they would write off the €40k arrears or has anybody in similar circumstances negotiated a deal with them?
My friend lost their job in 2009 and rented out the house to survive as they did not get social welfare. The mortgage fell into arrears. The tenants virtually destroyed the house and when the time did come when the mortgage could possibly be serviced the money instead went towards fixing the house.
Over the course of the mortgage repayments have only been made about 35% of the time. The house is worth about €200k and the arrears are €40k. The mortgage is the last of the good trackers. My friend's financial situation has improved in recent times and he is at the stage where he wants to do a deal with AIB. I do not understand why they have not repossessed the house at this stage in the absence of communication but it seems they are still open to suggestions. My friend overall would like to keep the house. Does anybody think there is any possibility they would write off the €40k arrears or has anybody in similar circumstances negotiated a deal with them?