Parents in debt

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phelb

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Hi All, looking for a bit of advice I just found out my parents (67 & 63 years old) have a mortgage on their house which has 43,000 owed on it. The house is in a village outside dublin worth about 120000. My mother believed my father was paying it and in fact he was but not every month , He missed a large period of time paying and he is very poor with money management anyway to cut a long story short they met the bank and the bank have told them they have to pay 1000€ a month.

My mother works and receives approx 26,000 per annum but with bills and loans she says she can only put 250 - 350 towards the mortgage a month and my father gets the pension which means if he pays the rest from his pension he will have little left.

I dont have any extra income which i can divert to it with a mortgage of my own and my husband is unemployed and my mother is petrified there home will be taken off them. Im basically looking at the situation with minimum knowledge of all the facts at the moment is there any way to pay less and guarentee the mortgage off the house when they die > any suggestions welcome and i have to also acknowledge that while they cannot afford the mortgage now they are only in this situation due to negligence in previous years .
 
Hi phelb. This is a very difficult situation your parents find themselves in. Do you know or can you say how much of the 43,000 is arrears and at what stage is it with the bank i.e. are they ready to go down the enforecement route or are they a bit away from that yet. In any event, regardless of their age, this would appear to be no different to what many people are facing on a daily basis. Your parents will need to complete a standard financial statement listing all of their income and all of their expenses and the bank will review this against their standard expenses for a household of that type. The SFS will tell exactly how much money is available to pay off against the mortgage every month.

However, the big issue is for the bank is how long will it take to get their money back and I suspect your parents age will come into play here. If the repayment level is such that it will take 10 years to repay the 43,000 then the bank will be concerned that by that time your parents will be 73 & 77 which then raises a questio nabout their ability to continue to earn as far as then.

I hope that's not too convoluted...
 
phelb said:
My mother works and receives approx 26,000 per annum but with bills and loans she says she can only put 250 - 350 towards the mortgage a month and my father gets the pension which means if he pays the rest from his pension he will have little left.
Click to expand...

So effectively other loans are being prioritised? Is there a reason for this?
 
Thanks @ ClaireM - the other loan is with the cu and is my mother - she religiously pays it weekly along, She feels those loans are hers and she needs to pay them back whereas I suppose she always thought the mortgage was being paid and didnt see it as her debt. She knows now that she will have to pay it but in her head the cu is a standard thing she pays every week and cant be missed.

@ The count - I dont know the arrears figures etc, When I try and find out more form them they clam up - say its there problem etc etc they say ive enough to be dealing with but obviously it concerns me greatly.
 
Again, back to the Standard Financial Statement, all loans and the extent of borrowings will have to be taken into account in determining how much they can afford to pay against all of them.
 
Don't think anyone can give you advise with the info provided.

Your parents have an income of approx €2,900 per month perhaps your father should contribute to some of the household bills and let your mother take care of the mortgage.
 
What might be useful is to name the Bank once the facts are accurate. This does not sound like BoI or AIB.

Also we don't know what went in prior to this and it would be useful to know:
- when they got the loan
- what was it used for
- how did the bank assess the repayment
etc this is part of the information a negotiator would need,

Many of the cases we are seeing here demonstrate that many need a strong advocate to present their case.
 
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