Letter of unsustainability

[brian d]

Hello all. Our lender KBC have put a receiver on our primary home last July,2013. We had rented out. I am in full-time education and my partner and my two young children are on a Back To Education Allowance of 380 euro per week. Our arrears are over 50,000 and our monthly mortgage payments are 1460 euro. Our current mortgage is 315,000 and KBC will not issue a letter of unsustainablity. We are unable to enter into the property and the receiver is putting the house up for sale with all the proceeds going to KBC. We are currently homeless living with family in separate accommodation unable to get assessed for social housing and rent allowance as we can not get a letter of unsustainability from KBC. We made a proposal with New Beginnings to KBC to split the mortgage and keep the house when I graduate in 2014. They refused this proposal and will not say the mortgage is unsustainable. We have made a formal complaint, however we can not move forward at present. Anyone else in this position?
Regards Brian d.

 

[Brendan Burgess]

You need to provide the following information to get a proper answer:

Information required for mortgage arrears and negative equity questions

What did New Beginning advise?

Your question is a bit confusing.

If you had bought it as your home, I am surprised that the mortgage deed allowed the appointment of a receiver? Did you buy it initially to rent it out? Again, New Beginning are excellent in this area, so presumably they checked that KBC had the right to appoint a receiver.

Lenders don't usually appoint receivers when the owner pays the rent over to them. Were you paying the rent over to KBC?

If you had rented it out, it was no longer your primary home? So saying it was unsustainable wouldn't be much help to you. As you had moved out and rented it, what happens to it should not affect your housing needs assessment.

The local authorities are very difficult to deal with. While the regulations say that a letter of unsustainability is needed, the fact that you have been effectively repossessed, should trump that.

However, I suspect that your story is more complicated. If you provide the full information, you may get a more helpful answer.