"Don't pay your mortgage without debt deal" - David Hall

I have moved these posts from another thread as they raise a very important issue - Brendan

Delboy said:

ah shucks, David Hall's dream can't happen until the bigger picture is sorted!
So either a bail in by the taxpayer or robbing depositors of their hard earned cash....where do I sign up to either options in order to fulfill that dream!

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Don't choke on your cornflakes Delboy, but I'd be interested in your views and others on this:

Don't pay mortgage without debt deal - David Hall


http://www.independent.ie/business/...ithout-debt-deal-says-imho-head-30363173.html

Bronte said:

Don't choke on your cornflakes Delboy, but I'd be interested in your views and others on this:

http://www.independent.ie/business/...ithout-debt-deal-says-imho-head-30363173.html

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David Hall 'Strategic Default Denier' encourages mortgage holders to engage in strategic default....oh, the irony of it.
Looks like BoI aren't rolling over for him no matter what spectaculars he throws out to the media, so he's playing 'hard ball'. I'm sure Richie Boucher is losing sleep over this latest publicity stunt

My advice to banks is that where they classify a mortgage as unsustainable, they should do a deal on the shortfall as part of the surrender agreement. This would increase the number of voluntary surrenders and would allow the banks to focus their resources on the ones who are not cooperating.

AIB has agreed and is now doing this.
ptsb is testing it with 200 clients who have been classified as unsustainable.

Not sure about KBC. The other banks are refusing.

I raised this very issue at the Bank of Ireland AGM. I argued that I cannot advise someone with an unsustainable mortgage to surrender their home. Bank of Ireland is insisting that it will never write off the debt. If the borrower is going to lose their home anyway, it's the borrower's interest to pay as little as possible and to string out the repossession for as long as possible.

So what should a borrower do who has been classified as unsustainable.

1) They should not agree a voluntary surrender without a deal on the shortfall - so I fully agree with David Hall on this.
2) If they think that the mortgage is sustainable, they should appeal the decision internally. If the appeal is refused, they should continue paying as much as possible towards the mortgage. The lender is unlikely to take legal action as the court is unlikely to grant a repossession order if they are paying at least the interest on the loan.

3) If they are going to lose the house eventually, then they should definitely build up a fund to allow them to pay for an insolvency process and to build up a fund for a deposit and some months' rent

I don't agree with the full mortgage boycott. That will give the bank the ammunition they need to speed up the repossession. But if the bank is not going to agree a deal as part of a voluntary surrender, then the borrower should build up a fund through paying less on their mortgage.

Maybe they should withhold payments until they have built up a fund. And then resume. It won't get to court for a few years and the judge will be more interested in the recent payment record than in the payment record from two years earlier.