Voluntary sale/surrender as negotiating options ?

M

michaelg

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Can a voluntary surrender/sale be used as a negotiation tool with a bank in exchange for writing off any shortfall ?
Surely this is a much better and cheaper option for both bank and debtor as repossession and/or bankruptcy costs the bank more.
 
That's a very vague question.
Is it commercial, residential investment property or a private home?
Are you in difficulty with repayments?

A bit more background please and I can try and help
 
2 properties, one is a private home and the other is a site i was intending to build my new home on.
Yes been in difficulty for around 2 years now, behind in repayments and bank threatening legal action.
About to go bankrupt but thought i'd give this a last shot.
 
I suggested to the banks and the IBF that they should do a Voluntary Surrender Protocol, but I got nowhere.

Roughly, the idea was that it would make more sense for people to sell their homes voluntarily and reach an agreement on the shortfall before the sale. But the banks all refused to do a deal before the sale.

This might change now as bankruptcy and the PIA are real options. I understand that AIB is doing deals through the Irish Mortgage Holders Organisation exactly along these lines. People are selling their homes and paying what they can afford over periods of up to 7 years. AFter that, they are debt-free.

Brendan
 
Relating to the OP's question, should he engage a solicitor when putting forth any deal with a bank?
 
Why engage a solicitor? This is not a legal issue and a solicitor can generally not add anytthing to the negotiation. An experienced financial advisor would be of more benefit than an inexperienced solicitor. Obviously there may be some solicitors who also have experience in acting as an intermediary with banks and in that context such a solicitor could add some benefits to the negotiations.
 
Thanks Guys
I think negotiations should be fairly simple at this stage and i can do them myself. I'm fully aware what i want from them , the alternative to that is bankruptcy plain and simple.
I just wonder if such deals are actually happening and if its worth my time driving/petrol driving to meet someone , guess i will find out.
 
Good luck getting a deal - please update us if you are successful.

In my case, even the very real option of bankruptcy has had no effect, bank has essentially said "whatever" regardless of the much lower return it would yield them!
 
I tried the bankruptcy option myself and they were not bothered by it at all. Very little seems to phase them.
 
Hi Brendan
advice would be appreciated, we have now sold our house after 6 months with no help from BOI we have done it through a voluntary sale, we are left with a shortfall of 55,000 they bank got 111,000 we got nothing, we are now waiting to hear from them as to how they will go about getting the 55,000 from us, we are both on 188 euro per week social welfare and cannot seeing either of us returning to work due to health reasons, how do you think the BOI will go from here
 
They may just register a judgement for the 55K and then use the usual methods of sending the sheriff/seeking instalment orders to force you to hand over some money per week/month. Seeing as you are on SW a judge would not be impressed with such carry on.

I would do nothing for now and await their next move.
 
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