Pepper Settlement.

Hi Mr Peabody.
This is only a suggestion, not sure how it would work in practise for you.
You have a brother that might be able to come up with 100k.
Instead of trying to get a write down etc. maybe you could just borrow the 100k off your brother and pay the 80k arrears and buy the 10k equipment that you need to improve your income, and keep 10k to help with immediate cash flow. Your mortgage then would be only 220k with no arrears but you would owe you your brother 100k. But he mightn't need it back for some time.
You might be able to renegotiate lesser monthly mortgage payments on 220k and your income would hopefully get better with improved equipment.
 
RichInSpirit said:
Hi Mr Peabody.
This is only a suggestion, not sure how it would work in practise for you.
You have a brother that might be able to come up with 100k.
Instead of trying to get a write down etc. maybe you could just borrow the 100k off your brother and pay the 80k arrears and buy the 10k equipment that you need to improve your income, and keep 10k to help with immediate cash flow. Your mortgage then would be only 220k with no arrears but you would owe you your brother 100k. But he mightn't need it back for some time.
You might be able to renegotiate lesser monthly mortgage payments on 220k and your income would hopefully get better with improved equipment.
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From the brothers point of view this is a no goer. No way would I advise this from that brother's point of view.
 
Brendan Burgess said:
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.
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From the McNamara case it seems to me this not paying can be overlooked by the judge. But if he's going down this route, which he should, he should start paying so he gets his record back on track.
 
Mr peabody said:
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.
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This I don't understand. Surely you can borrow the 10K off your brother? And you can pay him back from your increased income. What equipment is it that is stopping you working?

And I don't understand what you mean there about your lender, have you applied to Pepper for a 10K loan? Or this a different lender?
 
Brendan Burgess said:
Borrow the money from your brother.

Brendan
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It’s been three years since the offer of the money from my brother was initially proposed to Pepper. When it wasn’t accepted my brothers life has moved on and his money is now tied up elsewhere.
I feel you picked me up completely wrong yesterday Brendan. I am in no way looking for a freebie,i feel that the same as in any business deal if money can be saved why not try and go for it. if it appears I am strategically defaulting it has just been in a bid to get a response from Pepper. I have the monthly payments all kept and if they reject the offer this money will be paid I lieu of the missed payments.
If Pepper say no to my current offer it will be a case of regrouping and trying to put together a better offer.
My main query on the initial post was could anybody understand why it could take Pepper 9 months to come back with a decision but the replies have been far more interested in all other aspects of my story.
 
Mr peabody said:
It’s been three years since the offer of the money from my brother was initially proposed to Pepper. When it wasn’t accepted my brothers life has moved on and his money is now tied up elsewhere.
I feel you picked me up completely wrong yesterday Brendan. I am in no way looking for a freebie,i feel that the same as in any business deal if money can be saved why not try and go for it. if it appears I am strategically defaulting it has just been in a bid to get a response from Pepper. I have the monthly payments all kept and if they reject the offer this money will be paid I lieu of the missed payments.
If Pepper say no to my current offer it will be a case of regrouping and trying to put together a better offer.
My main query on the initial post was could anybody understand why it could take Pepper 9 months to come back with a decision but the replies have been far more interested in all other aspects of my story.
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If you've kept the money why don't you use it to buy the equipment? I don't think trying to force the bank into a corner is the way to go.

Pepper are presumably very busy, didn't they tell you they hadn't had time to look at your file. If you engaged a PIP, which is exactly what you should do, you would be able to get concrete advise on your options. I'm amazed in all these years that you didn't go to a professional. And Pepper would probably prefer to deal with a professional.
 
Bronte said:
This I don't understand. Surely you can borrow the 10K off your brother? And you can pay him back from your increased income. What equipment is it that is stopping you working?

And I don't understand what you mean there about your lender, have you applied to Pepper for a 10K loan? Or this a different lender?
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Hi Bronte. It’s a piece of machinery that I use in my job. As stated in post to Brendan my brother has since tied money up elsewhere.
God no,loan is not from Pepper. In 2016 and 2017 I asked pepper could they do a mortgage for the market value of the house or 20/30k above it out of the new and even at a high interest rate from once it was sustainable they could have licked us in as long term customers but they laughed at the proposal.
 
Mr peabody said:
Hi Bronte. It’s a piece of machinery that I use in my job. As stated in post to Brendan my brother has since tied money up elsewhere.
God no,loan is not from Pepper. In 2016 and 2017 I asked pepper could they do a mortgage for the market value of the house or 20/30k above it out of the new and even at a high interest rate from once it was sustainable they could have licked us in as long term customers but they laughed at the proposal.
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You don't seem to understand that what you want from Pepper may not be what Pepper wants or is willing to do. Do you understand that Peabody?

What institution is willing to give you a loan with your credit history and your significant level of debt. Frankly I'm astounded any institution is allowed to do such lending. Is it a credit union?
 
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Bronte said:
You don't seem to understand that what you want from Pepper may not be what Pepper wants or is willing to do. Do you understand that Peabody?

What institution is willing to give you a loan with your credit history and your significant level of debt. Frankly I'm astounded any institution is allowed to do such lending. Is it a credit union?
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I completely understand that re what Pepper want. But the way I’m looking at it is that I have tried to put forward proposals to them where they would have me as a long term paying customer(I’m in my mid thirties) as long as the mortgage is sustainable. I felt that the split offer with a huge balloon payment at the end was not sustainable and potentially saddling my kids with debt around the time of my retirement is not something I plan on doing.
The house is in MASSIVE negative equity in a very very remote rural setting and as 3 different Valuer’s working for Pepper have all pointed out it’s a “very hard sell”.
And Yes.Credit union is the lender.
 
If the Central Bank is reading this, every credit union in the Country can expect an inspection on their underwriting standards.

Look it is a tough situation to be in and I know it must be difficult for you and your family but you really need good independent advice at this stage. A PIA is probably best bet and they will deal with your case even if you are not currently paying. Or else try one someplace like MABS that might be able to put in touch with someone.

My two cents worth are as follows: You need to forget about the credit union mortgage and making a deal with Pepper on a % of the market value of the house. While you are not paying, the arrears are climbing. They will just take the house and get the full market value. Take the loan from the credit union for the equipment and start earning a full wage again. Continue to pay what you can and at very least the interest on the mortgage. Keep copies and track of all attempts to deal with Pepper. This will be proof of engagement if they do start proceedings. You really do need to look at the split mortgage solution if still available. Its not a bad offer. Your kids won't be saddled with the debt. You might even want to sell and downsize at the end of the 30 years. You have 30 years to worry about the 140k. Anything can happen before then. The key is getting a sustainable mortgage and security in your home for you and your family now while the kids are young.

Best of luck anyway.
 
Mr peabody said:
I

I completely understand that re what Pepper want. But the way I’m looking at it is that I have tried to put forward proposals to them where they would have me as a long term paying customer(I’m in my mid thirties) as long as the mortgage is sustainable. I felt that the split offer with a huge balloon payment at the end was not sustainable and potentially saddling my kids with debt around the time of my retirement is not something I plan on doing.
The house is in MASSIVE negative equity in a very very remote rural setting and as 3 different Valuer’s working for Pepper have all pointed out it’s a “very hard sell”.
And Yes.Credit union is the lender.
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You're still arguing from your own perspective. Pepper are not interested in offering you what you want them to offer you. It doesn't matter what you feel. They don't feel. They want their money. It's only about money.

As for your children. They will have no debt. How are you saddling them with debt. You can pay the mortgage for now and house your children, I presume given the cost of it that it's a fine house. You can afford to pay the mortgage. So that will be paid off in time. And you can try and save money to pay off the balloon payment in 30 years.

Your credit union is crazy. How much have you on deposit there? Can't believe you think borrowing more money at a high interest rate is a good idea. Can your brother or someone else not loan you the 10K interest free.
 
+1 on taking the PIA route. Also, a "no-veto" PIA may be possible as the mortgage was in arrears on 1/1/2015. No-veto means that the judge may force the PIA on Pepper even if they don't like it. The mortgage could potentially be written down to the value of the house.
 
Not signed up to split. Was only offered that late summer last year and declined due to fear of balloon payment which I must admit going by comments here is a decision I could yet live to regret.
Bronte said:
He already signed up to that agreement. That was what he was paying.
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Hi all. Just an update on what happened regarding the Pepper Settlement previously outlined.
Earlier in the year Pepper accepted my offer for the market value of the house-180k for full and final settlement of the 440k mortgage including arrears.
For all the advice given on this thread and the extremely harsh comments, particularly from Mr Burgess, NOBODY predicted this or even suggested continuing with the strategy.
Key message from my experience is-plan how to get out of a financial hole,stick to your guns,execute it and be very very careful who you listen to regarding advice.
Happy Xmas everyone, particularly all the so called financial advisory experts.
 
That is good news for you Mr Peabody. It must be a great feeling to only be in debt to €180K rather than €440K.

So you currently have a €180K loan with another lender? How are the repayments on that going. Did you ever get that piece of machinery you wanted and what is your income like now?

Do you feel you will be in a position to pay off this current loan in full? What is the term and interest rate?

And who gave you the best advice. I know you did not rate the advice here but it was very nice of you to circle back and let us know the current position.

How long did pepper take to respond to you, and what did they think of the token mortgage payments you were making back in 2019. I admire your ability to keep going in the face of mounting debts, I know I would not have been able to do the same, but that is just my mindset.
 
Pepper were obviously representing an investment fund.

Called by sinn fein, the lefties and certain people in the media as "vulture funds"

We were also assured by David hall (and he has reaffirmed this recently) of a tsunami of repossessions by these funds.


But it seems from this and countless others cases that these funds are far easier to do reasonable deals with than any other financial institution.

I wonder if Mr. Hall, sinn fein or the usual babble on the far left could comment on what seems to be very fair treatment of people by these funds.
 
Hi Mr. P

Thanks for getting back to us with an update. It's always useful to know what is actually happening.

You were offered a great deal at the time and couldn't avail of it.
The next best option at the time was to get a Personal Insolvency Arrangement which would have dealt with the issue very well for you.
You have now managed to get €180k and clear the mortgage presumably for less than the market value.

There is a difficult issue in advising someone to stop paying.

Sometimes strategic defaulters like you do get deals.
People who pay their mortgage rarely get deals.

So the people who strategically default effectively cause the rest of 600,000 borrowers to pay the highest mortgage rates in the eurozone.

I think of all the mortgage holders and not just the strategic defaulters. As most posters here say from time to time, we need to make it easier for lenders to repossess houses.

Brendan
 
Another important point is that many people will say that we must make it easier for the lenders to repossess the homes of strategic defaulters.

But then when faced with an actual case such as yours, their natural personal sympathy blinds them and they give advice in the best interests of the person, rather than in the best interests of society.

I stick to my position and have had to tell people on many occasions that what they are doing is wrong and that the bank should be allowed to repossess their home. They don't like it.

Brendan
 
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