brother is guarantor on mortgage, now I'm unemployed and can't pay

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PHOEBE

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Hi, hope someone can give me some advice :) I took out a mortgage in 2006, at the time I was a single parent and only working part-time so my brother agreed to go as guarantor, the problem is I am now unemployed for the last 18 months I came to arrangement with mortgage company to pay interest only, this has now run out and I am unable to pay my mortgage. My brother was in the construction industry and has had to liquidate his company and is in considerable debt himself and I am worried that the mortgage company will start to go after him, if anyone has any advice it would be much appreciated!
 
Assuming that the property is your PDH, your home and related mortgage will come under the MARP process. (search AAM for related info re this topic).
Approach the Bank and state that you are unable to resume full loan repayments upon expiry of the current agreement. They will advise you on the financial statement you will need to complete, in order to assess your financial position and you can then apply to them for a revised repayment schedule based on your current repayment capacity. Best to do this immediatly, as I take it that you will shortly be in arrears on repayments. Ideally you should in the interim maintain the repayments at interest only level to avoid the Bank taking any action. Decision process re MARP tends to be slow. provided you do this there is no immediate liklihood of the Bank taking any action against you.
 
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Thanks for the reply 44brendan. I'm afraid I am already in arrears of over 5,000, as when the interest only option ran out I did approach the bank, but they would not agree to extend it as they had done so twice already and I had fallen behind by 1,000euro, so they started looking for the full amount and I continued to just pay what I could, now I am looking at the arrears going up at an alarming rate and just don't know what to do!
 
Sorry to hear that Phoebe. Continuing paying what you can. No need to worry about the balance of the arrears. I am surprised that the Bank did not direct you to their ASU department (deals with MARP) when you contacted them. Currently the Bank are required to come to an agreement with you, provided that you co-operate by given them the full information on your financial/other position.
Contact them again and tell them that you are availing of MARP in order to agree a repayment schedule that you can afford. Try to contact the ASU or relevant MARP Dept directly rather than your local branch.
 
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