how to exit MARP?
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Brendan Burgess
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When you have cleared the arrears and are making the full repayments, you will no longer be in MARP. I am not sure what the formal process is though. I imagine that you have a 6 month review and would then be told you don't need it anymore.
The bank may agree to capitalise the arrears and take you out of MARP before that.
Why would you want to leave MARP?
The bank may agree to capitalise the arrears and take you out of MARP before that.
Why would you want to leave MARP?
MARP is not a status as such. You are eligable to avail of the MARP process if you are not meeting your agreed HL repayments. If you have reached a short/long term agreement with the Bank, and abide by that agreement, MARP has no real relevance for you. In practical terms all Banks have an ASU department that make decisions on MARP cases. If a mortgage is restructured or if arrears are fully cleared and there are no further difficulties evident, the loan will no longer be dealt with by ASU. i.e. it will leave MARP.
Income details
Net monthly (i.e. after tax) Income self: €2,400
nature of income: Employment
Income history: "I have received pay rise in July"
Net monthly income partner/spouse: N/a
Personal circumstances so we can calculate your reasonable living expenses
Home loan
Lender:
Amount outstanding: 315,000
Value of home: to be determined
Monthly repayment: 1,100
Interest rate: tracker
Amount in arrears: 7,000
Monthly outgoings:
Total:
Estimated: from ∼500 minimum to ∼1,300 very maximum (it really depends of the month as no month is 100% equal, I'm able to sometimes sublet one room, so occasionally I receive extra ∼300 to ∼400).
Above may seem vague. I'm able to follow correct opinion (if given)
Summary of discussions and agreements with the bank:
No major agreements, second borrower not cooperating
Agreements with mortgage arrears team:
equal repayments towards arrears for the next 7 months (on the top of monthly repayments), past six months the monthly repayment made in full
Other loans and creditors -
Term loan Amount outstanding: 3,400
Term loan term left: 3-4 years (TBC)
Term loan - monthly repayment: 100
Term loan - interest rate: 14%
Other savings and investments
Do you expect any lump sums in the medium term future?
Redundancy, inheritances, injuries awards.
Yes
1st small lump sum received 4,000 - this currently being used to repay arrears (bank agreed to that)
2nd - expecting larger lump sum, amount to be determined
How important is retaining the family home to you?
Which of the following best describes your situation?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
Any other relevant information
second borrower not cooperating
What is your preferred realistic outcome?
For example:
Not too sure.
Net monthly (i.e. after tax) Income self: €2,400
nature of income: Employment
Income history: "I have received pay rise in July"
Net monthly income partner/spouse: N/a
Personal circumstances so we can calculate your reasonable living expenses
Home loan
Lender:
Amount outstanding: 315,000
Value of home: to be determined
Monthly repayment: 1,100
Interest rate: tracker
Amount in arrears: 7,000
Monthly outgoings:
Total:
Estimated: from ∼500 minimum to ∼1,300 very maximum (it really depends of the month as no month is 100% equal, I'm able to sometimes sublet one room, so occasionally I receive extra ∼300 to ∼400).
Above may seem vague. I'm able to follow correct opinion (if given)
Summary of discussions and agreements with the bank:
No major agreements, second borrower not cooperating
Agreements with mortgage arrears team:
equal repayments towards arrears for the next 7 months (on the top of monthly repayments), past six months the monthly repayment made in full
Other loans and creditors -
Term loan Amount outstanding: 3,400
Term loan term left: 3-4 years (TBC)
Term loan - monthly repayment: 100
Term loan - interest rate: 14%
Other savings and investments
Do you expect any lump sums in the medium term future?
Redundancy, inheritances, injuries awards.
Yes
1st small lump sum received 4,000 - this currently being used to repay arrears (bank agreed to that)
2nd - expecting larger lump sum, amount to be determined
How important is retaining the family home to you?
Which of the following best describes your situation?
I really want to keep the family home even if it means having a large mortgage and negative equity for years to come.
Any other relevant information
second borrower not cooperating
What is your preferred realistic outcome?
For example:
Not too sure.
What is your interest rate, is 1100 repayment a full repayment or a reduced payment, if not the full, what should it be.
What are you paying towards the arrears. You mention 'equal payment to arrears' what does that mean.
Forget about rent a room for now. How much of your income of 2400 do you need to live on. If you pay 1100 plus 100 out of that, it leaves 1200, are you able to live on that? Heat, light, car, food etc. Do you have a credit card. How many years remaining on your mortgage and what age are you.
What are you paying towards the arrears. You mention 'equal payment to arrears' what does that mean.
Forget about rent a room for now. How much of your income of 2400 do you need to live on. If you pay 1100 plus 100 out of that, it leaves 1200, are you able to live on that? Heat, light, car, food etc. Do you have a credit card. How many years remaining on your mortgage and what age are you.
interest rate: as far as I know about 2.4% (tracker)
from about 1200 left I am able to live on that
no credit card
remaining 30 years
age 31
equal arrears payments of 1200 monthly (I have received small lump sum recently), I also have a family support (small family loan might be possible If I don't meet the arrears on my own) - I don't need to repay all arrears at once, I have agreed monthly payments
from about 1200 left I am able to live on that
no credit card
remaining 30 years
age 31
equal arrears payments of 1200 monthly (I have received small lump sum recently), I also have a family support (small family loan might be possible If I don't meet the arrears on my own) - I don't need to repay all arrears at once, I have agreed monthly payments
I have responded. To read updated response, might need to delete cookies or re-open AAM as I have edited the post.
So right now you are making a mortgage payment of 1100, which is the correct amount, and you also repaying the arrears, with another 1200.
You mention a lump sum, why don't you pay back the loan at 14% interest, it would be another bill sorted.
If you can comfortably live on your income, why not get someone stable to rent a room, and overpay your mortgage, you have mentioned NE.
Do you know your outgoings? What do you do when you have a big bill, such as insurance or a car repair, what do you do in those months? You haven't mentioned any figure for savings?
I don't recommend you borrowing more money from somebody else to pay the arrears. If you feel that you are the type of person that cannot hold onto the lump sum in order to repay the arrears monthly, then repay all the arrears now.
You mention a lump sum, why don't you pay back the loan at 14% interest, it would be another bill sorted.
If you can comfortably live on your income, why not get someone stable to rent a room, and overpay your mortgage, you have mentioned NE.
Do you know your outgoings? What do you do when you have a big bill, such as insurance or a car repair, what do you do in those months? You haven't mentioned any figure for savings?
I don't recommend you borrowing more money from somebody else to pay the arrears. If you feel that you are the type of person that cannot hold onto the lump sum in order to repay the arrears monthly, then repay all the arrears now.
I am not sure if repaying the loan at 14% at the moment is correct. I just want to clear the arrears. Once they are cleared I will try to contribute to the loan at 14% (assuming the room will be rented).
I am sometimes not too comfortable to live on that income but it is not the worst income.
Big bills- I have really small direct debits (all insurances are less than 30e per insurance per month)
heating and other expenses were minimized to the level I can handle other bills
I am sometimes not too comfortable to live on that income but it is not the worst income.
Big bills- I have really small direct debits (all insurances are less than 30e per insurance per month)
heating and other expenses were minimized to the level I can handle other bills
The person from the bank called to request a meeting.
I met with the Representative of the RECOVERIES section of the bank.
I had a 90 minute private meeting in the head office of the bank (first after 12 months) with the bank's representative.
All of my previous requests for such meeting were for 12 months unanswered.
During the meeting discussed were:
1) Term extension
2) split + term extension
3) write off
4) issue of non-cooperation
I was told:
The issue of non-cooperation can be resolved - the bank has made proposal as to how to resolve this.
This involved getting proof that all reasonable attempts were made to contact the 2nd borrower and that this person have had not been in cooperationn therefore will be deemed by the bank as a non-cooperating borrower.
- There was no advise given to me whether or not this is a good or bad thing for me.
The points of legal implications of the non-cooperation of the 2nd borrower, the ones which may affect 1st borrower were very vaguely discussed (I was just told to take a legal advise).
I was told:
From above options only two options are available, e.g. option 3) even it is in the code of conduct, however it is not actively entertained by the bank or by borrowers (as it included write off on the bank's side and on the borrowers's side it involves an interest rate increase and losing tracker e.g. moving to The standard variable rate, which at the moment is 4.4%).
Interesting facts:
The maximum age limit for the borrower has significantly increased. to 70 Years of Age
The possible mortgage term extension: the term has significantly increased as opposed to what I was told for years of talks in the branch. Maximum 40 years of the loan term
THESE WERE VERBALLY GIVEN, NOTED BY BANK's REP on own piece of paper and taken back to the suitcase, nothing given in writing.
3 or 4 times I was advised to take a legal advise.
My thoughts:
I have very recently sent a letter to arrears section and followed by the payment (we came to an informal agreement over the phone).
I don't know whether or not this is bank's attempt to apply to court for the repossession based on the fact of one borrower non-cooperating and my possible in-ability to support this mortgage on my own (the Total figure in the Standard Financial Statement may be against me as total outgoings shows my expenditure exceeding my monthly income (by 80e).
I was told to read CCMA.
I met with the Representative of the RECOVERIES section of the bank.
I had a 90 minute private meeting in the head office of the bank (first after 12 months) with the bank's representative.
All of my previous requests for such meeting were for 12 months unanswered.
During the meeting discussed were:
1) Term extension
2) split + term extension
3) write off
4) issue of non-cooperation
I was told:
The issue of non-cooperation can be resolved - the bank has made proposal as to how to resolve this.
This involved getting proof that all reasonable attempts were made to contact the 2nd borrower and that this person have had not been in cooperationn therefore will be deemed by the bank as a non-cooperating borrower.
- There was no advise given to me whether or not this is a good or bad thing for me.
The points of legal implications of the non-cooperation of the 2nd borrower, the ones which may affect 1st borrower were very vaguely discussed (I was just told to take a legal advise).
I was told:
From above options only two options are available, e.g. option 3) even it is in the code of conduct, however it is not actively entertained by the bank or by borrowers (as it included write off on the bank's side and on the borrowers's side it involves an interest rate increase and losing tracker e.g. moving to The standard variable rate, which at the moment is 4.4%).
Interesting facts:
The maximum age limit for the borrower has significantly increased. to 70 Years of Age
The possible mortgage term extension: the term has significantly increased as opposed to what I was told for years of talks in the branch. Maximum 40 years of the loan term
THESE WERE VERBALLY GIVEN, NOTED BY BANK's REP on own piece of paper and taken back to the suitcase, nothing given in writing.
3 or 4 times I was advised to take a legal advise.
My thoughts:
I have very recently sent a letter to arrears section and followed by the payment (we came to an informal agreement over the phone).
I don't know whether or not this is bank's attempt to apply to court for the repossession based on the fact of one borrower non-cooperating and my possible in-ability to support this mortgage on my own (the Total figure in the Standard Financial Statement may be against me as total outgoings shows my expenditure exceeding my monthly income (by 80e).
I was told to read CCMA.
what happens if the bank deems me a non-cooperating borrower on the fact that the 2nd signature is missing from the STANDARD FINANCIAL STATEMENT e.g.
can the absence of the 2nd signature somehow bring me to any of the two below clauses:
(a)
''the borrower fails to make a full and hones disclosure of information to the lender..''
(b)
''the borrower fails to provide information, relevant to the borrower's financial situation''
can the absence of the 2nd signature somehow bring me to any of the two below clauses:
(a)
''the borrower fails to make a full and hones disclosure of information to the lender..''
(b)
''the borrower fails to provide information, relevant to the borrower's financial situation''