Hi. I would appreciate any input please.
I am in my late 50’s and have been dealing with debt and insolvency since the financial meltdown. To summarise, I moved mortgage provider in 2006 to take advantage of BOI’s tracker rates, and subsequently did an equity release, investing the monies in an investment property with thee business acquaintances. Each purchased a 25% share, together putting up 30% plus outlay, while BOSI provided 70% LTV. The loan was performing, but after the crash, BOSI demanded that the LTV be brought back to 70% - none of us could raise the money required, so ultimately the property was sold in 2013, the investment made written off, and BOSI wrote off the shortfall post sale.
I am self-employed for 35 years and was trading successfully throughout that period until the crash had a severe effect on my business and income. To try and weather the storm, I drew down a lump sum of €75k (25%) from my pension pot in 2009 and was hoping that the economy and my business would turn around, but that was not to be.
The equity release loan I had taken out in 2006 secured on my home was interest only, whilst the remaining part was capital and interest. In 2011 I received a letter from BOI stating that they had reviewed the interest only element of my mortgage and were then changing it to capital and interest. I had been paying c€2,600 p.m. but the new repayment level was €7.850 p.m.an after-tax sum that I could not then afford – it was difficult enough paying the €2,600 p.m. I contacted BOI, completed the SFS and tried to get them to agree to continue an interest only basis for the equity release, but to no avail. They deemed in 2013 that my mortgage was “unsustainable” and the only offer they could make me was that I surrender the property to them or sell it on their behalf. I appealed the outcome, pleading for them to continue the loan as before, but the outcome was the same. They demanded that I sell my home and would not discuss an arrangement regarding the significant balance of unsecured debt I would have post sale.
Having no option but to sell my home, I moved to the UK in late 2013 to try and start over and put my home up for sale in the spring of 2014. In the autumn of 2014 I received an offer for my home, which I put to BOI. They consented to the sale and released the deeds to facilitate the sale. The sale price covered 66% of the mortgage. Concurrently, they issued high court papers seeking a judgement against me for the total mortgage sum, having demanded its payment prior to the issue of the papers – that case remains pending; and subsequently they issued circuit court papers seeking possession of my home – that case is ongoing.
In the UK I took some legal and financial advice about my situation and was advised to continue with sale of my home, and to put a proposal for my creditors together, and call a creditors meeting using an insolvency practitioner. This I did, signing the contract for sale in late 2014. The creditors meeting was called and took place in early 2015. The bank did not participate or attend. They sent a proxy by standard mail voting against which arrived two days after the creditors meeting. My proposal was carried by the creditors who participated. I therefore hold a binding IVA contract.
The purchaser of my home advised through his solicitor that he had to travel abroad to deal with a family crisis. Many months passed and eventually almost a year later he returned, wanting to close. My solicitor requested from BOI fresh consent to proceed with the sale, and this was refused due to the delay in close. I put my home up for sale again in 2016 and received an offer 10% higher than the consented sale price from 2014, still 20% below the indebtedness. This offer was put to the bank and they came back refusing without explanation, stating that they wanted to continue with their circuit court action for possession and that they wanted to seek to overturn my binding IVA. Through my solicitor I offered them possession of my home subject to them acknowledging that any unsecured debt following subsequent sale of the house was already cleared in my binding IVA contract. My liability to them being either the sale price of my home or surrender of the property. They indicated a willingness to accept surrender of the property but were unwilling to acknowledge that any unsecured debt had already been cleared in my IVA. The sale was therefore scuppered, and I could not go ahead with the surrender.
I came across your website and was reading it with interest. Given that I have a binding insolvency arrangement in another EU country, I would have thought that BOI should not be able to refuse consent to sale of my home and should be obliged to release the deeds to facilitate the sale which they have refused to do. Does anyone know if this is the case, and whether under EU insolvency regulations, Irish or UK law, there are any sanctions that can be imposed against a creditor who refuses to comply with an EU binding insolvency contract?
I am in the process of putting together an affidavit for the circuit court, so any help would be much appreciated.
My IVA whilst it includes any unsecured debt that might arise from the sale of my home or its surrender, it is not dependant or conditional upon the sale of my home. I would obviously like to retain possession of my home if that were possible and sustainable. As things have evolved since my loan was deemed unsustainable back in 2013, I have been researching on line to see what could be possible at this stage, before the bank do get possession of my home through the circuit court.
I notice from reading your site that the Governor of the Central Bank back in 2014 confirmed for the Public Accounts Committee that the bank has no objection to an interest only arrangement for one’s lifetime, with one’s estate following death selling the property and clearing the debt, and that such an arrangement would be deemed a sustainable arrangement. In my case, I have significant arrears as this matter has been dragging on since 2012, however I would now be able to pay interest only, or interest plus some capital write down, but would still not be able to pay anything close to €7,850 p.m. As I have a UK IVA, I would guess that an offer to the Irish circuit court would need to be put by my UK insolvency practitioner rather than an Irish PIP? Would either be able to put such an offer in the Irish circuit court, or is such a “No-Vito” offer only possible if made by an Irish PIP in respect of an Irish PIA?
I am in my late 50’s and have been dealing with debt and insolvency since the financial meltdown. To summarise, I moved mortgage provider in 2006 to take advantage of BOI’s tracker rates, and subsequently did an equity release, investing the monies in an investment property with thee business acquaintances. Each purchased a 25% share, together putting up 30% plus outlay, while BOSI provided 70% LTV. The loan was performing, but after the crash, BOSI demanded that the LTV be brought back to 70% - none of us could raise the money required, so ultimately the property was sold in 2013, the investment made written off, and BOSI wrote off the shortfall post sale.
I am self-employed for 35 years and was trading successfully throughout that period until the crash had a severe effect on my business and income. To try and weather the storm, I drew down a lump sum of €75k (25%) from my pension pot in 2009 and was hoping that the economy and my business would turn around, but that was not to be.
The equity release loan I had taken out in 2006 secured on my home was interest only, whilst the remaining part was capital and interest. In 2011 I received a letter from BOI stating that they had reviewed the interest only element of my mortgage and were then changing it to capital and interest. I had been paying c€2,600 p.m. but the new repayment level was €7.850 p.m.an after-tax sum that I could not then afford – it was difficult enough paying the €2,600 p.m. I contacted BOI, completed the SFS and tried to get them to agree to continue an interest only basis for the equity release, but to no avail. They deemed in 2013 that my mortgage was “unsustainable” and the only offer they could make me was that I surrender the property to them or sell it on their behalf. I appealed the outcome, pleading for them to continue the loan as before, but the outcome was the same. They demanded that I sell my home and would not discuss an arrangement regarding the significant balance of unsecured debt I would have post sale.
Having no option but to sell my home, I moved to the UK in late 2013 to try and start over and put my home up for sale in the spring of 2014. In the autumn of 2014 I received an offer for my home, which I put to BOI. They consented to the sale and released the deeds to facilitate the sale. The sale price covered 66% of the mortgage. Concurrently, they issued high court papers seeking a judgement against me for the total mortgage sum, having demanded its payment prior to the issue of the papers – that case remains pending; and subsequently they issued circuit court papers seeking possession of my home – that case is ongoing.
In the UK I took some legal and financial advice about my situation and was advised to continue with sale of my home, and to put a proposal for my creditors together, and call a creditors meeting using an insolvency practitioner. This I did, signing the contract for sale in late 2014. The creditors meeting was called and took place in early 2015. The bank did not participate or attend. They sent a proxy by standard mail voting against which arrived two days after the creditors meeting. My proposal was carried by the creditors who participated. I therefore hold a binding IVA contract.
The purchaser of my home advised through his solicitor that he had to travel abroad to deal with a family crisis. Many months passed and eventually almost a year later he returned, wanting to close. My solicitor requested from BOI fresh consent to proceed with the sale, and this was refused due to the delay in close. I put my home up for sale again in 2016 and received an offer 10% higher than the consented sale price from 2014, still 20% below the indebtedness. This offer was put to the bank and they came back refusing without explanation, stating that they wanted to continue with their circuit court action for possession and that they wanted to seek to overturn my binding IVA. Through my solicitor I offered them possession of my home subject to them acknowledging that any unsecured debt following subsequent sale of the house was already cleared in my binding IVA contract. My liability to them being either the sale price of my home or surrender of the property. They indicated a willingness to accept surrender of the property but were unwilling to acknowledge that any unsecured debt had already been cleared in my IVA. The sale was therefore scuppered, and I could not go ahead with the surrender.
I came across your website and was reading it with interest. Given that I have a binding insolvency arrangement in another EU country, I would have thought that BOI should not be able to refuse consent to sale of my home and should be obliged to release the deeds to facilitate the sale which they have refused to do. Does anyone know if this is the case, and whether under EU insolvency regulations, Irish or UK law, there are any sanctions that can be imposed against a creditor who refuses to comply with an EU binding insolvency contract?
I am in the process of putting together an affidavit for the circuit court, so any help would be much appreciated.
My IVA whilst it includes any unsecured debt that might arise from the sale of my home or its surrender, it is not dependant or conditional upon the sale of my home. I would obviously like to retain possession of my home if that were possible and sustainable. As things have evolved since my loan was deemed unsustainable back in 2013, I have been researching on line to see what could be possible at this stage, before the bank do get possession of my home through the circuit court.
I notice from reading your site that the Governor of the Central Bank back in 2014 confirmed for the Public Accounts Committee that the bank has no objection to an interest only arrangement for one’s lifetime, with one’s estate following death selling the property and clearing the debt, and that such an arrangement would be deemed a sustainable arrangement. In my case, I have significant arrears as this matter has been dragging on since 2012, however I would now be able to pay interest only, or interest plus some capital write down, but would still not be able to pay anything close to €7,850 p.m. As I have a UK IVA, I would guess that an offer to the Irish circuit court would need to be put by my UK insolvency practitioner rather than an Irish PIP? Would either be able to put such an offer in the Irish circuit court, or is such a “No-Vito” offer only possible if made by an Irish PIP in respect of an Irish PIA?