Voluntary Sale for Loss

D

DublinBroke

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Very new to this but I have like to request advice to any admin. or users who may have experienced, went through the "voluntary sale for loss" option recently.

My family and I have, and I could explain our side of the story if anybody's interested ??

Even when enacted it's not really ever over per se, so I just wanted to see if there's other examples out there.

Kind regards,

DublinBroke
 
Hi Brendan,

Thank you for you reply and yes, I have no problem doing this, but will need a little time to complete.

Just to summarise, we have sold our property under a "voluntary scale for loss" program with one of the main building societies, but we have now entered into a settlement agreement for the next 7 years, which I would ideally like to bring to an early close.

Will post again soon,
 
Hi
we too are in a similar situation and have put our 2nd property up for Voluntary sale in agreement with the bank ( we have a mortgage of this property) if we manage to get a buyer we will be left with a shortfall of between 30 and 40,000 euro depending on what the property sells for. How do the bank go about getting this money you say you have entered into an agreement for the next 7 years we are both in our sixties and are both only receiving social welfare money of 188 euro each per week we do have another property which we live in which is mortgage free and they are telling us they will put a charge on our property do you know how this works any advice would be appreciated with you recently going through this process
 
Golden 1951, I would not settle for them putting a mortgage on your family home. I would offer them a lump sum settlement on the amount you owe them. Not the full amount but a percentage of it.
This depends on the bank and your other circumstances etc.

For the OP, they wil agree a lump settlement on the agreement you have entered now. They would prefer a lump sum now rather than regular repayments over 7 years and will settle for a reduced amount. Again it all depends on a number of variables.
 
commercial

we do not have any money to offer them a lumps sum our only route is to do the voluntary sale and be left with a shortfall which we will have to pay them back, as we said we are worried that they will put a charge on our home and if we do not keep to the payments we will loose our home too/
 
Dublin Brooke
would love to hear about your side of the story we are going through a similar thing
 
Hi Golden1951,

Sorry for the belated reply, with us it was a bit different, we had quite a sizeable mortgage which was unsustainable.

We negotiated with the institution to allow us to sell for loss with the nett proceeds of sale being appropriated back to them. The residual debt was quite an amount and we have agreed an amount to be paid each month for seven year. Provided we stick to the arrangement they will then close our account.

This arrangement also prevents us from borrowing over €5000 euros during this time also. Thus we are preventing from borrowing for another property should this be an option we would want in the future.

I do not have any experience to offer on what I can glean from your comments below so i would prefer not to offer any advice. I really wish you well with your situation and hope you can find a solution which suits you and gets the stress levels down a but (which i most certainly have experience of I'm afraid).

Regards,

DB
 
Commercial, can i please ask you advice on our prospects of getting another mortgage if we can indeed settle this amount with the bank ? As you might imagine most other banks are not exactly rushing to lend us money for this purpose. We will nit be able to offer the full amount but hopefully they will accept a lump sum.

I guess a lot will depend on how the bank reported our case to the ICB. I have requested our report from the ICB and await its arrival.

Thanks for your post,

DB
 
Brendan Burgess said:
You will have to be a bit more specific in your question.

Better still, provide the following information
Click to expand...

Please copy and paste this post into a new thread. If you give comprehensive information, it will maximise your chances of getting comprehensive and useful results.


Income details
Net monthly (i.e. after tax) Income self: 58,000 pa
Income history: e.g. we were 2 income family until wife become ill in 2008, hasn't worked outside home since then.
Net monthly illness benefit
Amount of child benefit received (Should be €130 per child)
Amount of Mortgage Interest Supplement received - NA

Personal circumstances so we can calculate your reasonable living expenses
two adult family
Do you need a car for work or do you use public transport? company car
Number of 4 - 11 years old: 1 boy
Number of 12 - 18 years old:
Monthly childcare costs: N/A
Montly spend on special circumstances: hard to calculate fully, but we have a lot of exceptional health care cost. roughly 4/5000 pa.



Home loan
Lender: EBS
Amount outstanding: 440,000
Value of home: 195,000
Interest rate: fixed rate 4.7
Monthly repayment , 2,250
Amount in arrears : roughly 9,000

Summary of discussions and agreements with the bank e.g. on interest only since 2008, this was cut off in 2013. Arrears are attributed to this cut off. We simply couldn't afford to pay the mortgage, plus insurance, plus 150 monthly maintenance fees.

Credit Union
Amount of shares - N/A
Amount of loan outstanding
Monthly repayment
Term left


Other loans and creditors - no unsecured debt

Other savings and investments - roughly 5000 euros.

Do you expect any lump sums in the medium term future?
Redundancy, inheritances, injuries awards. No


How important is retaining the family home to you?
Which of the following best describes your situation? We took the decision to enter the voluntary sale for loss program.


Any other relevant information

What is your preferred realistic outcome?
We have completed the process but now find ourselves paying the debt settlement arrangement for the next 7 years. The monthly amount is manageable while we rent a property in the area where we lived, but I would like to get some advice on how we might approach the bank with a view to bringing the arrangement to an early close. We of course do not have enough money to clear the total, so this will be quite a challenge.

Any advice would be greatly appreciated
 
Hi
I posted something similar earlier. Can you tell me, are the bank pursuing you for the full shortfall after you sold the house or did you negotiate a substantial writedown?
 
deansmith27 said:
Hi
I posted something similar earlier. Can you tell me, are the bank pursuing you for the full shortfall after you sold the house or did you negotiate a substantial writedown?
Click to expand...

They are not pursuing me for the full amount and, as such, took a substantial write-down.
 
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