Is the bank obliged to offer me a restructuring deal?

[Danny McCarthy]

Are the Banks obliged to offer an extension to my mortgage as my property is in positive equity but my mortgage must be repaid by the age of 70, even though I have continually paid a reduced mortgage for a number of years. My Bank don't seem to be very keen on going this route, and selling my home is not an option as my wife has Alzheimer's and must remain in the home.

 

[Brendan Burgess]

You have a contract and the bank is not obliged to do anything except ask you to adhere to your contract. If you are in arrears or potential arrears, they must take you through the Mortgage Arrears Resolution Process, but are not obliged to offer you any restructuring.

However, banks tend to be flexible. But the CB doesn't like mortgages going beyond age 70, so your bank may refuse. If they do, write to the Central Bank and the Minister for Finance complaining about their policy on this issue.

Brendan

 

[paddy19]

"Bank ..... not obliged to offer you any restructuring."

Brendan,
I think this reply is technically correct but I think the new power that judges have
to impose a deal on the bank changes the situation in reality.

Since negotiation is all about your Best Alternative to a Negotiated agreement " (BATNA) it's important to
to understand the alternative if a bank refuses a deal. My understanding is that the courts can now impose a restructuring deal on the bank.
This weakens the banks position since up to now the courts had to rubber stamp the contract. The
courts have generally been very sympathetic to owners if they have a reasonable effort to pay the mortgage I think they
will impose the deal.

In reality the banks will be reluctant to go to court and have a judge impose a deal. They would look stupid and
a lot of people would see that they have a viable alternative.

The Bank offers no restructuring.
You go to a PIP and get her to propose a deal to the bank.
The bank refuses the deal.
The PIP goes to the court and the judge has the power to impose a deal on the bank.

Needless to say nobody wants to go to court but this process reduces the negotiating power
since you now have a decent BATNA.

Am I right in this belief?

 

[Palerider]

To the OP's question, Your Bank have no obligation, that is different to you having a business case put together for analysis by the Banks credit function.

You have no need for a PIP adding a layer here that is not necessary, by all means get some further advice, without knowing all the details it is difficult to be more help.