Looking for advice as both on illness benefit and in arrears with mortgage.

Hi, this is my first post although I have spent the last few months following threads in this forum.

Our situation is dire. We are both on illness benefit and 8 full months in arrears. Our mortgage is almost €2,300 a month and totally unsustainable. When we bought for €200,000 in 2008 we could afford our repayments.

When my husband was made redundant this put extreme pressure on both of us but particularly me as the sole earner. Then I got ill, requiring surgery and although I have recovered I now have further health concerns. We have no child dependents.

I am in my mid 40s and my husband will be 50 in December.

Tomorrow I am going to ring the bank and tell them we quite simply can not pay.

I am wondering if any one can tell me what is the likely outcome?

Should I voluntarily surrender? If not, then the bank will seek to repossess.

Can anyone fill me in on what the timeframe might be? Is it only a matter of a few months? Is it likely the judge will give a few weeks to find a new home and
move etc etc?

I have read through most of the posts and can't actually find the answers to these questions.

At this point I just want it all behind us so we can try and move forward. I am of course all too aware we will still owe the bank a lot of money, almost the full amount plus costs.

Lastly, I was informed over the week end by some one who works in my bank that the bank can just come out and change the locks? Surely this is not the case? Thanks.

There are lots of groups on face book.

There is no such thing as no hope.

Lots of people are in the same situation and getting help and helping each other.

The first thing you need to do is get your full file under freedom of information and make sure everything is in order.



Irish Homeowners Unite

FreedomBus@groups.facebook.com

Sorry, but your case seems odd - or there are too many details lacking.
You've made no contact with any social welfare department seeking help with your interest payments?
You've made no contact with the bank -after 8 months not paying anything ?
You haven't known that you can come to some arrangment with the bank - as explained in various posts such as the "key post" on this forum about mortgage arrears regarding restruction of loans ?
You have not sought the help of the various bodies -private and governmental -that advise people in your straits ??

Banks are agreeing to up to one year moratoriums whilst you get yourself in order -and/or to interest only payments - and/or stretching out the loan . often a combination of these things. And none of this was suggested by you or your bank ???


Anyway, even if there ,really, has been no previous communication from you to the bank the court will almost insist that the bank and you get together and work out a plan . Failing any chance of any plan the court will still allow some months before you are evicted. This would be especially the case if you can provide medical evidence of you and your husbands condition.

And if you can obtain help paying interest-only then the courts will be most reluctant to allow any lender to kick you out at any time.

Thanks for the reply oldnick.

Initially I just buried my head in the sand as I was so ill. I ignored all communication with the Bank. They then sent out a financial satement which we completed and returned. I then contacted them by phone and told them I was returning to work in January and would pay €1,000month. I have not returned to work as I am not well enough, so was unable to pay anything.

I will contact social welfare in the morning re mortgage supplement. To be perfectly honest, I thought we had to wait for a year before we could approach them but having looked at their website this has not been implemented yet. Just on that note, I did ring them a few months back and was told our interest payments were too high at €1,600 a month to be considered. (There is only the two of us).

I also contacted New Beginnings but was basically told we need legal proceedings to have been started against us.

I am fully aware of the MARP process and what it entails. Our problem is that we have no money whasoever to put to the mortgage.

Like I said I will contact SW first thing in the morning. The absolute bottom line is the bank will have to seek possesion. This is not what we want, but totally unavoidable in my opinion. My main concern therfore is how long from when they seek repossion to when we close the door behind us? If the SW do not help us, nothing will be paid.

Again I would like to stress we do not want to leave our home but in the abscence of mortgage interest supplement the bank is going to have to act.

If you are presently being charged over 19.000 interest a year then your case does look problematic, even with help on the payments.

The other problem is that whatever capital you may have paid off from 2008-up to 8 months ago has disappeared with the last 8 months build-up of interest. That is, you may owe more than you first borrowed, whatever sum that was (I'm guessing nearly the whole 420k judging by the amount of interest).

your situation is bad but it is more important to consider your health. Whilst you don't want to quit your home you may eventually have to. But that is not the end of the world; accommodation ,whether rented or provided -will be available and the horrible cloud of bank debt etc will lift. In a years time you could be living in a very pleasant home at 1k a month and be free of present financial worries. That sounds patronising but this is what people in similar situations have told me- they wish they'd done it earlier.

Good luck with social services -and sorry I came across a bit harsh in my first post.

Cute-Dub I can only imagine what the last 12 months were like for you. I hope 2012 will bring some light. In relation to some questions you asked above.

Should I voluntarily surrender? If not, then the bank will seek to repossess.

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Maybe but if you still owe 400k the bank sell for 300k you still will owe 100k +, ( just example figures) voluntarily surrendering may be the right/best thing to do but I would suggest getting advise from a good sols 1st.

Can anyone fill me in on what the timeframe might be? Is it only a matter of a few months? Is it likely the judge will give a few weeks to find a new home and move etc etc?

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If the bank have not started legal proceedings - it could take years before a judge will give the bank back the house. He/she will make sure every other option is tried 1st - mainly a payment plan.

Lastly, I was informed over the week end by some one who works in my bank that the bank can just come out and change the locks? Surely this is not the case? Thanks.

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No this is 100% false. If you hand bank the house a date will be agreed. If the bank take legal action the judge will make a decision on the house but you will be aware that this is happening. So no it's not like a car - the bank cannot just take your house away.

Best of luck tomorrow - it's very important that you talk to the bank as if you don't MARP won't apply and legal proceedings could be started.