Overseas - what will happen after voluntary assisted sale is completed

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Seachranai

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Travelled abroad, rented out house, lost job, bank (PTSB) looked at my financial situation and said renting was unsustainable and "recommended" voluntary assisted sale. Signed the documents, they asked how much I could contribute to the shortfall (about Eur 105k). I can cover the auctioneer and solicitor fees. It got back to me to say that I remained liable for the shortfall (after deducting the auctioneer and solicitor fees) but that it was "agreeable" to the sale. It added that it can accept payments on a "without prejudice" basis, and that arrears will continue to unless serviced. The mortgage will not be vacated and the ICB will be informed of any missed payments.

I am still abroad (Asia, non-English speaking, non-common law jurisdiction), and do not intend to return to Ireland (but who can predict the future); I understand that there is essentially no way for them to touch me while I am here.

Where does this leave me? Will the bank simply cut its losses, are they waiting for a better offer, or will they simply wait and see if they can claw back? Does it make any difference to the bank if a loan is written off or if it keeps it on the books until a later date?

My solicitor explained the 6 and 12 year statute of limitation rules but 18 year seems like an awfully long time to me. I am also understand that there are very few cases of the banks pursuing people abroad, but who is to say that they won't try a test case.

Should ask relatives for a few thousand euros and increase my offer. Would that only encourage the bank to dig in and drag this out. Does the bank have a clear and consistent policy on this? Has anybody actually gotten a deal with this bank prior to sale, or after sale, and what were the terms? If the bank offers a deal, but my circumstances improve in a few years, can they come back and demand repayment?

Has cooperating with the bank done me more harm than good? Should I have simply posted them the keys and not looked back?
 
Voluntary sale without agreement on shortfall is definately not to be recommended.


I wouldn,t be inclined to get relatives involved.
From what you say , you are (safe) outside of Ireland.

Read other threads on Mortgages in AAM , there is some very helpful advice.
 
OP technically you still remain liable for the full shortfall. however the bank knows your circumstances and will have provided fully for this balance. They are pragmatic and will not bother trying to chase you abroad or taking legal action here. While the 6 year statute of limitations does apply, realistically the Bank will have moved on from you in the short term and even if you do return in less than 6 years there is a very low liklihood of any action being taken against you.
I am operating at "the coalface" in an Irish Bank and once a case is regarded as "closed" it is likely to remain so unless you win the lotto or appear in the papers a newly returned millionaire!
 
we are going through a voluntary sale at the moment i cant see why you are having to pay the solicitors and auctioneer fees, these should come out of the proceeds from the sale of the house and then the bank gets what is left, they do however say the fees should only be 1% of the sale price of property, for each of them. We are waiting at the moment for the bank to make us a proposal which i might say has taken up to now 7 weeks since we informed them we had a buyer, we are have only 350 euro per week coming in so we do not envisage being able to give the bank much per month to pay off the shortfall, we have another property which we live in which is mortgage free, so we do not see them writing off any of our shortfall which is very small compared with yours ours is only 46,000, maybe we should take your example and move abroad, the bank are getting 120,000 off the mortgage so 46,000 is only a drop in the ocean to them, we have found the bank we are with, very uncooperative and whenever we ring them with queries they just say its our problem to sort out and not there's, anyway good luck with your sale and hopefully they wont come after you,
 
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