Deferred mortgage interest scheme plan

[grownupgirl]

our mortgage is in arrears of about €15,000. we are not in negative equity but there is no market for our house at the moment and there is a little bit of work needed outside. I want to keep a roof over my head for the next 4 years until my youngest finishes school. I work part time but my prospects are getting better.

I am seperated for 3 years and my husband is just not interested in paying mortgage. He appears happy to let the bank repossess the house and has threatened this on several occasions. myself and children are living in the house at the moment and there is a maintenance order on him of €200 weekly until we get back to court in June. The judge has told him to sort out the mortgage but he hasn't.

I had cancer last year and have about €40,000 left from a life Ass payout. He has large debt but his accounts show that his business is stable. the banks mortgage advisor is coming next week to meet and talk through the options (and obviously size up the house). my question is - has anyone been offered or gotten the new deferred mortgage interest scheme that is coming into effect for mortgages in arrears? I can't see any posts about it. I would like to persue it with the bank and use my money to ensure I can stay in the house until the market picks up.

 

[Brendan Burgess]

Which lender are you with?

What are the numbers involved?

Value of home.
Size of mortgage outstanding
Interest rate

Are you paying anything at all at the moment?

In normal terms, if you have €40,000 in the bank, you should use it to pay off the arrears. However, I can see why you don't want to do this.

What exactly did the judge say? "To sort out the mortgage" is too vague.

Have you asked the lender to reschedule before? Most lenders will reschedule to interest only.

What does your solicitor say?

if there is positive equity, I would think that the main objective would be to get the house, and mortgage, into your name. However, the lender will probably still want him on the mortgage, so they can go after him as well.

Brendan

 

[grownupgirl]

A long winded rely so I apologise in advance....

Which lender are you with? Bank Of Ireland

What are the numbers involved? Original mortgage €314,000

Value of home. About €385,000 now. Large House on 1 acre half hour outside a city and we are living here 4 years.

Size of mortgage outstanding see below
Interest rate – 4 mortgages due to long self build
· €169,000 Tracker (1.75%) now owe €163,324
· €10,000 variable (3.49%) now owe €9266
· €75,000 variable (4.89%) now owe €75,466
· €60,000 variable (1.75%) now owe €57,418

Are you paying anything at all at the moment? Not since March 09. I was under the impression we had interest only as we had applied for it. As I had been ill I didn’t query this until October when I realised that we weren’t. So €15,000 is owed now in arrears as above.

What exactly did the judge say? "To sort out the mortgage" is too vague. He had been told last June to pay mortgage but he didn’t and she was annoyed with him. He has said he has a small lump sum to use for repayments and she told him to use it in the best way to stabilise the mortgage. That is why the bank is coming to see the house. We both have to meet the advisor.

Have you asked the lender to reschedule before? Most lenders will reschedule to interest only. The bank has said that they will only reschedule when they see his business plans. But regardless of that he just won’t pay the mortgage anyway. As I said before he is pleading poverty. He is a sole trader and each year his accounts reflect what he wants it to reflect.

What does your solicitor say? She is flummoxed by his attitude and cannot offer an answer.

if there is positive equity, I would think that the main objective would be to get the house, and mortgage, into your name. However, the lender will probably still want him on the mortgage, so they can go after him as well. Will you expand on this a little? Have you any idea what the bank would need to do this? I earn very little but I have a friend who would guarantee the mortgage for me if I asked. I could not afford the full mortgage (about €1,800 monthly) and I worked out interest only at about €800 which would still be stiff but probably manageable. So far I am offering to pay €50 weekly towards the mortgage whether interest only or full amount.

In an ideal world I would like interest only for 5 years which I would pay, with the house in my name and I get the equity when I sell then – am I mad to think this would work?

I would not be able to raise a mortgage on my own if the house was repossessed/sold and I want to stay stable until the children are gone to college. I am realistic about the house eventually needing to be sold.
I appreciate your time and opinion on this, I am finding it hard to find a solution.

 

[Brendan Burgess]

Are you paying anything at all at the moment? Not since March 09. I was under the impression we had interest only as we had applied for it.

You were under the impression that you had interest only, Were you paying the interest? I am a bit confused.

Do you have a written court order, ordering him to pay the mortgage? If you tell the bank that you are going back to court to force him to pay the mortgage, they might give you more time.

The interest is around €8,000 a year or €700 per month. You should offer to try to pay this. They might not agree to reschedule as such, but they are unlikely to take any action against you if the balance is not increasing.

It's very risky, but it might be worth getting the bank to start enforcement action. That might force the judge to force him to do as he is told.

 

[Bronte]

I have a friend who would guarantee the mortgage for me if I asked. I could not afford the full mortgage (about €1,800 monthly) and I worked out interest only at about €800 which would still be stiff but probably manageable. So far I am offering to pay €50 weekly towards the mortgage whether interest only or full amount.

In an ideal world I would like interest only for 5 years which I would pay, with the house in my name and I get the equity when I sell then – am I mad to think this would work?
.

Your friend would be very foolish indeed to go guarantor on your mortgage. You ought not to even contemplate asking.

The bank will not let you get the house in your name, not when you cannot afford the mortgage and your husband is more of a mark then you.

As you've stated as your husband is self employed he will be able to show a judge that he too cannot afford the mortgage so going back to court will probably be of no benefit unless you can prove his earnings (nearly impossible in self employed cases) and will only cost you in legal fees.

Plainly you cannot afford the house. Can you not rent somewhere nice for the 800 you say you can afford?

You are quite correct in that the bank is coming to size up the house and see if you have any Picasso's or other assets.

We are not allowed to talk about house prices on here but you have made a large assumption in your original post.

Keep the 40K for your medical bills that is far more important than paying a mortgage. Your's is not an easy situation.