Pepper Settlement.

[Mr peabody]

Apologies if not the correct Template.

I currently have a 12 year old Mortgage with pepper for €300K + €80K arrears.
€1000 being paid very regularly for several years adding up to about €180K in total repaid.

They proposed in April 2017 that if we could acquire funds they would take full and final settlement for market value of the house of €170k.

It was June 2018 before we got access to money and we were only able to obtain €100k which they declined.

They in turn offered us a very unfavorable split mortgage which I in turn declined-they appeared irate over this at the time.

January of this year we sent them in an offer with proof of funds for €150K with the house revalued (generously) ay €190K.

As of today facing September 1St no decision has come from Pepper.
In may I was advised to stop payments which I did a this has not even recieved a phone call.
I have rang every Friday since April to see if there has been any decision and I get the same Generic answer every time that the team that deals with this hasn’t got a chance to look over it.
I have had ABSOLOUTELY NO correspondence from their side since January in the line of either letters or a phone calls.

My question is are they building a case against me or is there something amiss at their side???

They have completely failed to engage with us for years and quiet Frankly I’m at the end of my tether with it all.

Apologies again for lack of structure in post but all help greatly appreciated.

 

[Bronte]

My understanding is that is you cease payments you risk losing your home. Can you post up details of your split mortgage.

 

[Mr peabody]

My understanding is that is you cease payments you risk losing your home. Can you post up details of your split mortgage.

The split was approximately 240K over 30 years at 5.5% and €140K shelved until the 30 years was up.

 

[Brendan Burgess]

They proposed in April 2017 that if we could acquire funds they would take full and final settlement for market value of the house of €170k.

The split was approximately 240K over 30 years at 5.5% and €140K shelved until the 30 years was up.

In may I was advised to stop payments which I did a this has not even recieved a phone call.

They have completely failed to engage with us for years and quiet Frankly I’m at the end of my tether with it all.

This is outrageous.

Pepper offer you two great deals and you don't accept either.

This is the reason we are paying the highest mortgage rates in the eurozone because of won't pays like yourself.

The legislation needs to be changed so that deliberate defaulters like you can be put out of your house after a few weeks.

Brendan

 

[Bronte]

If you went bankrupt would you not be better off moving out of the house and starting again. Particularly as you have access to funds (I presume this is from a relative). Because that's a crazy amount of debt relative to the house value. And even when you've paid off the 240K at an eye watering 5.5%, you're still left with 140K (nearly it's current value) owing. You'd literally end up with nothing at this rate of going.

Alternatively I'd be thinking about going renting if it were cheaper.

 

[Bronte]

The legislation needs to be changed so that deliberate defaulters like you can be put out of your house after a few weeks. It's outrageous that you expect the rest of the mortgage holders to pay the highest rates in the eurozone so that you can get a write off.

Brendan

BB he said he stopped paying on advice. Did you see the interest rate he's paying. We don't have any background to his story so I think you're way harsh.

 

[Mr peabody]

This is outrageous.

Pepper offer you two great deals and you don't accept either.

This is the reason we are paying the highest mortgage rates in the eurozone because of won't pays like yourself.

The legislation needs to be changed so that deliberate defaulters like you can be put out of your house after a few weeks.

Brendan

Very disappointed with your reply Brendan. I have worked my fingers to the bone for years having unfortunately taken out this mortgage based on construction income which had collapsed inside 12 months of drawdown.
Repayments were made religiously for 11 years to the absolute amount we could afford and myself,my wife and my 3 children often lived on a shoestring during this period.
I was unable to rise the full funds for the first proposed settlement and this was very disappointing but outside of my control.
I do not see the debt offered on the split as being sustainable and it’s debt I feel that would be unfair to ultimately pass onto my own children in 30 years time.
I believed this website was a so-called page a person could seek advice on without harsh judgement but after your response it’s clear that it’s as corporate as asking a bailiff for advice.
Apologies for my initial post Brendan,I won’t be posting again.

 

[Brendan Burgess]

Pepper offered you two great deals and your response?

Stop paying and accuse them of not engaging!

You bought a house at the wrong time for an amount you could not afford and you want the rest of us to bail you out?

Brendan

 

[Brendan Burgess]

BB he said he stopped paying on advice.

So what? He must have known it was wrong to stop paying his mortgage. If you were advised to evade tax, would you do so?

Did you see the interest rate he's paying.

The split was approximately 240K over 30 years at 5.5% and €140K shelved until the 30 years was up.

€[email protected]%	€13,200
Total mortgage	€380k
Effective interest rate	3.5%

Not bad.

He should be getting proper advice which would encourage him to resolve this through a PIA or bankruptcy.

But he might have blown his chances of a PIA now by stopping paying.

Brendan

 

[Bronte]

So what? He must have known it was wrong to stop paying his mortgage. If you were advised to evade tax, would you do so?

People do wrong things all the time. And no I wouldn't evade tax. But I wouldn't see anything wrong with seeing advise on the matter. To make sure what I was proposing to do was correct. Like the current thread on tax evasion. The OP didn't realise it was evasion, nor did others, but it was, and the OP should feel free to ask the question.

The OP is in a bad situation, he's been struggling for years. We've had posters on here just after the crash that were suicidal. Now I've no time for the Ryans of this world. But we must discuss each case on it's merits in all fairness. And you know that I agree that people ought to be evicted more easily, but I also agree that we should try not to do so if we can. Particularly families.

 

[Bronte]

Pepper offered you two great deals and your response?

Stop paying and accuse them of not engaging!

You bought a house at the wrong time for an amount you could not afford and you want the rest of us to bail you out?

Brendan

Yes Pepper offered him two great deals. But he didn't have the money. So the great deals were worthless to him. It can be very intimidating dealing with bankers. All the letters and threats. It causes reactions in people. Some fight them, some get delusional, some get suicial, some ignore them.

And it's not the OP's fault that the property market crashed. Nobody predicted that. And sure people made insane purchase prices. But they were surely led into it by possitive media, FF saying everything was ok, uselss regulators and bad bankers.

 

[Mr peabody]

So what? He must have known it was wrong to stop paying his mortgage. If you were advised to evade tax, would you do so?

€[email protected]%	€13,200
Total mortgage	€380k
Effective interest rate	3.5%

Not bad.

He should be getting proper advice which would encourage him to resolve this through a PIA or bankruptcy.

But he might have blown his chances of a PIA now by stopping paying.

Brendan

Brendan. Many thanks for the advice and kind words.

 

[Dazzler123]

While you might feel that the interest rate is prohibitively high, no PIA is going to get you a reduction in interest rate or a writedown where you can clearly afford the arrangement that has been offered. Not paying is a big mistake also.

The fact that you worked hard for years to pay the mortgage is not something that mitigates the position you are in now. You are supposed to pay your mortgage. Nobody should get kudos or a pat on the back for simply fulfilling their contractual obligations.

You appear to feel entitled to a deal with pepper because you worked hard in the past and you dont like the offer of a split mortgage that they made although it seems you can afford it. Unfortunately, not paying has greatly increased your chances of being removed from the house with no ability to borrow for another property. You really need to consult proper professional advice and steer clear of the person that told you to stop paying

 

[Brendan Burgess]

You really need to consult proper professional advice and steer clear of the person that told you to stop paying

+1

And make sure it's someone who challenges your sense of entitlement, not someone who feeds it.

 

[Mr peabody]

I can ensure you all that there is no sense of entitlement in what I have said.
The manager of the financial institution I have been approved the money from was the one that suggested I stop paying in order to get an answer from pepper which I do feel entitled to after 9 months waiting.
Pepper have previously indicated that they would settle for the market value of the house and am I wrong for trying to do a deal for them in this direction or do the ppl commenting on this thread feel that I should try and keep the debt as high as possible???
It’s ironic Brendan Burgess that you can accuse me of being the type of person that has apparently ruined the country while defending the vulture fund that bought my mortgage at a huge write down themselves.
At the time the mortgage got into difficulty I had approximately another €100K in debt all of which I have dealt with so forgive my annoyance that I’m having difficulty consolidating the mortgage.
Surely €160k of a parked debt to be activated does not make the split offer a good deal.
I wrote the post this morning as a plea for help in the hope that someone would be able to send me in some direction for professional advice and instead I’ve just been vilified as the root of all that’s wrong with the country.

 

[Dazzler123]

The manager of the financial institution I have been approved the money from was the one ....

With 80k in arrears, what financial institution is offering you a loan? Have you checked the interest rate on that loan. Given youre in arrears they must be charging a high rate?

Pepper said theyd accept the value of the house. Bear in mind they said this in april 2017, over 2 years ago. The valuation would be based on that time too. Dont be surprised if they want more due to the value of the house increasing. Plus something extra considering you havent been paying.

The manager in the financial institurion that told you to stop is totally wrong in his advice. If he is a manager in one of the main banks, id be very surprised. That is just negligent or perhaps hes very enthusiastic to get your business. He is certainly not working for you. You really should get professional advice.

 

[Mr peabody]

With 80k in arrears, what financial institution is offering you a loan? Have you checked the interest rate on that loan. Given youre in arrears they must be charging a high rate?

Pepper said theyd accept the value of the house. Bear in mind they said this in april 2017, over 2 years ago. The valuation would be based on that time too. Dont be surprised if they want more due to the value of the house increasing. Plus something extra considering you havent been paying.

The manager in the financial institurion that told you to stop is totally wrong in his advice. If he is a manager in one of the main banks, id be very surprised. That is just negligent or perhaps hes very enthusiastic to get your business. He is certainly not working for you. You really should get professional advice.

Thanks for your reply Dazzler123.
That’s why I initially posted-where does one get this professional advice?

 

[Dazzler123]

Solicitor would be the obvious choice id think

 

[Brendan Burgess]

Your best choice is actually a Personal Insolvency Practitioner.

But in applying for a PIA, the behaviour of the borrower in the previous two years is taken into account. Given that you deliberately stopped paying when you could afford to pay, you might not be able to get a PIA.

Brendan

 

[Mr peabody]

Your best choice is actually a Personal Insolvency Practitioner.

But in applying for a PIA, the behaviour of the borrower in the previous two years is taken into account. Given that you deliberately stopped paying when you could afford to pay, you might not be able to get a PIA.

Brendan

Currently paying a token of €400/month.
Cant fully work as I need a new piece of equipment costing €10k.
Income as the moment is seriously hampered.
My lender has assured me they can give me this but says they will have to pull the mortgage offer in order to put through the €10k application so I believe that’s called being caught between a rock and a hard place.
THAT is why I have become impatient regarding peppers failure to respond with a decision for good or for bad after 9 months.