Can bank place judgment on primary residence

Own my primary resendence - Bought an investment property - investment property in severe negative equity (as with loads of people). Tried to sell investment property but bank said I did not have sufficient income to be able to service the remaining debt. Met bank to set up tempory payment scheme as property was unoccupied for some time. Got letter in writing from bank agreeing this payment scheme was implemented - but they continued to take full repayment from my a/c, I have rang bank on numerous occaisions ( approx 15 times between Sept - date) to try to get this issue sorted... they say they will ring me back but NEVER do. Keep getting standard letters from them that I am missing my payments and threatening possibly taking further action. I have written to the bank also - still no reply. My concern is obviously they can sell the house from under me, but can the place a judgement on my primary residence (average house - young family). I am lucky that this is the only debt I have but am EXTREMELY worried (causing sleepless nights, stress, panic attacks) that they will try to attach to my home even though primary residence was not taken into account when they gave me investment mortgage - I am awaiting a call from them by close of business today... Heard that before!!!!!!!!!!!!!!

They can get a judgement against you alright. Keep all correspondence and ask the paying bank (your bank) to make sure the DD should be the interest only. If they refuse then cancel the direct debit and simply lodge the interest amount into the mortgage account. The problem is that one side of the bank (arrears) are not in synch or that they have an automated system sending out the standard arrears letters. Make sure you get everything in writing and only correspond in writing yourself from here on in. In the meantime try dropping the rent so that you have at least minimized your liability. Don't let it get to you too much either. The judgement will only be on the sale of your PPR so unless you plan to move in the next ten years it doesn't affect you for now.

Thanks for that - not what I was hoping to hear though :-(. I dont think I will be selling the house any time soon but if it was a case that they took a judgment would that mean the kids would be liable for the balance when they'd inherit it? Also how much notice would you get from the bank that they would be looking to place a judgement on the property? Would they look for it the same time as selling the rental property. The problem with putting it in writing is they claimed not to receive letters I have sent in the past (concerning different issues), even though I copy my Branch Manager and two different collection departments. I have asked them to correspond via email - but yep you guessed it I have not received a reply to my letters requesting this. The ironic thing is I'm ex bank staff with the bank we use for the mortgage!!!! Soooo frustrating!!!!!!!!!!!

I dont think I will be selling the house any time soon but if it was a case that they took a judgment would that mean the kids would be liable for the balance when they'd inherit it?

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the judgement will be for the amount outstanding i.e. what you owe them. By the time your kids inherit the house the chances are this will be very little compared to the sale price. Always amazes me how people worry about this when there are a hell of a lot more to worry about in life.

Also how much notice would you get from the bank that they would be looking to place a judgement on the property? Would they look for it the same time as selling the rental property.

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It depends. They will need to bring you to court to get a judgement. You will be notified of thi but usually takes a few years. That's why it's important to keep everything in writing so that you can say you talked to the bank suggesting this or that and they refused. Depending on how well your argument holds up they may not get a judgement. You need documents to back this up as hearsay is not good enough.

even though I copy my Branch Manager and two different collection departments.

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You send a copy or you are writing emails ? If you've sent a copy physically to them then this is very strange. Emails will get stuck in a long Q so don't rely on them.

elcato - thanks for your reply... I am a worrier by nature!!!
I have recently posted a letter to the Bank Manager and 2 collections departments... no reply recieved, previously the letter was only posted to one department where they advised they had not received it.
If the bank has issued you with intent to take you to court in an effort to get a judgment - could I sell the PR at this time or would the fact that bank has issued a letter advising its intend impead the sale of the PR???
Obviously I am are not near court stages yet - I am going to try to meet the bank face to face again - with a hope of coming to some sort of arrangment even in the short term. I acknowledge the need for the debt to be settled but would greatly appreciate a write down on some of the Negative Equite (but then who wouldn't!!!!)

Jea - you seem not to have understood Elcato's posts.

Nobody can take your PR. Or, to be accurate, if you own no other properties, don't have vast amounts of cash beyond the reach of Irish courts and are living in a property deemed reasonable to your family's needs (rather than a 5 million palace) then the courts will not deprive you of your primary residence.

Now, Elcato said they may get a judgement on the sale of your house. That is, when you sell the house and get cash for it it's possible they'll want their pound of flesh.
It's like a sort of lien.

So, why would you ask about selling now ? If you sell what would you do? Rent? Move in with relatives?

Of course, any cash you have from the sale may be grabbed by the bank.
I said courts don't take homes off people. But they take cash.

to Jea, Firstly do not trust the bank to act in an ethical or a competent manner.The Bank not responding to you is contrary to the 2012 consumer protection code.
I suggest do NOT tell them they have violated the Centrl Bank Code, (they don,t like being scolded!!!) but collate every attempt you intiated contact,
Only sell the PR if it SUITS you. If it has a mortgage with the same bank they would look to hve 2nd house arrears updated. If not , it is YOUR house and YOUR call . Be VERY slow to meet them face to face, their only interest is in covering themselves and i do not like the (implied) threat on your home !!!

I don't recall any implied threat being mentioned by the OP. Concern re judgement appears to have been raised by him/herself.
The account of your historical engagement and lack of response from the Bank does appear to reflect a level of incompetence on their part. Currently you should not have any concerns about Court proceedings. You will be well warned in adfvance of any imminent action by the Bank. Also, given their lack of interaction with you to date, you would have a valid defense against any judgement action.
You state that you agreed a repayment option with the Bank and that they are taking additional money from your account without your permission. This is neither ethical nor acceptable. You should immediately cancel the Direct Debit Mandate to the Bank. Write them advising them that you have cancelled this mandate and offer to set up a standing order with the level of agreed repayments. I trust that you have this agreement in writing! If so they should refund you the amount of any excess payments taken from your account.
It is essential that you keep a copy of all contact with the Bank (both written and verbal). This can be used as support of your co-operation, should they progress further against you.
It also appears to be both unfair and unreasonable for the Bank to stop you putting the property on the market for sale. I hope that you have put this offer in writing and advised them that their action could result in a loss for you and that if that is the case you will hold them responsible for any loss.
Finally, don't be overly concerned about any action being taken against your PDH. This is highly unlikely to happen, provided that you continue to meet some level of payments on the loan.

44brendan said:

It is essential that you keep a copy of all contact with the Bank (both written and verbal). This can be used as support of your co-operation, should they progress further against you.

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Banks have fax number at the top of their correspondence therefore it is best to fax them rather than posting this will ensure that they your correspondence.
Also always follow up any meetings and telephone conversations in writing to them confirming what was discussed. Be polite in your correspondence to them, but emphasis the salient point discussed at meetings or on phone with them.

To All - thankyou for your advice. I will definitely correspond with the bank in writing from this point on! I never received my 'return call' from them on Friday by 'close of business' - No surprise here!!!! I spoke with MARBS who advised me to write a letter to the Head of Collections department issuing a formal complaint and asking them to respond to my letter within 10 working days, at this point MARBS adivsed if no responce received I can then go the the Financial Ombudsan.