mortgage in arrears

the deal they are offering me is not going to help us.. the arrears they said is a different issue and the euribor rate will bring our mortgage down to 4 percent so that will be 1133 a month.. i seriously think they think i am stupid.. thats two hundred only lower than the orginial money. i am now waiting for appointment with free legal aid because it will go to court now.. i am so depressed this moment .... i have tried and tried and tried and getting no where and i am basically terrifed i will lose my home now in court..

the guy i spoke to said that sub prime lenders go back the euribor rate.. i am now wondering if we go back to the euribor variable rate next year we are lost... because its 4 percent and can go up much higher.. the fixed rate ends in july 2010... i said i had already made an proposal and did not know it was refused till august and he said i was told in march that it was refused. .. i was not that is a lie.. and i feel now they are trying to cover themselves now.. i seriously worried about what is going to happen to us now.. terrified

gina45 said:

our house is valued at 290k..and our mortgage was for 180k

our mortgage is now 194.975.92

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Gina, I honestly think the only sensible option is to put the house up for sale. Madangan already mentioned this as an option and I do think it's the best one.

Children are very adaptable. They will adjust to a new home no problem. You can make it a positive thing. A home isn't the four walls you have mortgaged there, a home is where your family is, where you live with your loved ones.

Where did you get the valuation figure of 290k? Is that a recent figure? Can you check on daft.ie what other similar properties are going for in the area? If it's really 290k then I would sell asap for 250-260k, be shut of that mortgage and use the extra 50k or so as a nest-egg. Rents are getting cheaper. Rent for a while, leave your nest-egg grow (there's some good savings plans available - see http://www.askaboutmoney.com/showthread.php?t=90481 for info on best interest rates etc) and relax, safe in the knowledge that you've offloaded that debt.

The 50 will grow and, in time, if you wish, you might be able to buy again. Or if you raise the kids in a rented house, nothing wrong with that. Some beautful houses going these days for cheap rent.

But if this court process proceeds, I don't know if you *can* sell then. So I would move on this fast before the court procedure starts.

If it ends up being re-possessed it will sell for a song - take control now and sell it yourself for a higher figure.

Good point Deb___ I hadn't noticed that valuation post. Gina, have you tried to sell? There is no point holding onto a house you can't afford if the option of selling is available. Deb___ is right, your home is more important. Don't confuse the two.

if your fixed rate is dropping from 7% to 4% variable thats approx €485 per month savings

194,000 x 3% = €5820pa which is a saving of €485pm in interest

Can you get them to confirm the monthly repayment? The figures you quoted below don't add up.

Also are you claiming Tax Relief at Source (TRS)?

As a quick note - not too sure about stepstone being covered by the code of conduct for mortgage arrears - or being a regulated entity.

Stepstone is 100% owned by Lehman Brothers - now in administration with PWC. The KBC association was only a sales & marketing agreement.

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Stepstone is not a retail credit firm - therefore not a regulated entity.

You might want to get your TD to raise questions with regard to how an unregulated entity can be allowed to collect on consumer mortgages in an unresponsible and unreasonable manner.

What broker did you use originally to obtain the mortgage? They as a regulated entity should be able to assist you in dealing with the terms of the mortgage as they originally sold it to you....