Voluntary surrender process

main point of quote

Another example would be where a private homeowner has unsustainable mortgage arrears such that the
accommodation is in the process of being repossessed and the homeowner is unable to afford rental accommodation
in the private sector and seeks to access the range of social housing supports. In these circumstances the following
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procedure should be followed. Where a borrower and lender have agreed to a voluntary repossession (after
pursuing any reasonable forbearance measures) the lender should complete a statement setting out the forbearance
measures that have been explored to sustain the mortgage and the borrower in their home and confirming that,
despite these measures, the mortgage is not sustainable and a voluntary repossession has been agreed. Upon
receipt of the statement and confirmation in writing, a housing authority may proceed to assess the household’s
eligibility for, and need of, social housing support, following the completion by the borrower of the required application
form and the provision of the required documentation. This assessment should take place in accordance with section
20 of the 2009 Act and the Social Housing Assessment Regulation. Housing Finance and Policy Development
Section of the Department will be issuing further guidance on the treatment of such cases in the near future.
In relation to the matters set out above which authorities must consider in making an assessment of ‘need’,
consideration should be had to the following legislation and guidance.
 
2on2 said:
I have done alot of reading up today on voluntary surrender of home and I have come across something that has worried me. In a few articles I have read some have suggested that they could stop our social welfare payments if we were to voluntary surrender our home but that would leave us with nothing, I was wondering if anybody can tell me if this is true and is this a step they would likely take or even has it happened in the past??
Click to expand...

Actually 2on2 there was something about this on here and in the newspapers a while back. Why don't you post a separate thread just on this point and maybe one of the social welfare posters will reply with the current rules.

1querty, what is your understanding of what will happen next in the voluntary surrender, particular in relation to the remaining debt? Have the bank told you anything at all?
 
Bronte: what i expect to happen next is the bank and ourselves to agree a hand over date and the process of EBS selling the house to start.

On a side note they will not allow ourselves to sell unless we can come up with the 200k balance. This stops ourselves selling the house even if we had a buyer ready to purchase

The remaining debt
From our point of view it will be written off one way or the another. As health reason are preventing work and there is no possibility of repayment in our situation
The bank can write it off or we will declare bankrupt
 
My wife and I are going in to meet the bank on Monday are very nervous about what is ahead of us. Has anybody got any pointers that I should keep in mind while we are speaking to them? What do ye think will be the atmosphere will be like? We just want to get the ball rolling on this so our first question will be to let us sell and take it from there. If anybody has any helpful information they can give me that would be great.
 
Looking at this from the side of the Bank, our priority is to obtain information and client co-operation in resolving the problems. There is no need for being nervous or apprehensive. Bank officials are not there to judge you (although I accept there are some individuals who are less than professional in their dealings with clients).
I'm assuming that you are in arrears on your loans. In that case bring a financial staement of affairs (summary of assets and liabilities) and income and expenditure statement with you. You are best in a position to know what you can afford to pay & whether any assets can be sold to reduce the debt. Generally the Bank will be reasonable in respect of repayemnt agreements (you cannot pay what you don't have) and the purpose of the meeting is to come up with a resolution that suits all parties.
Best of luck!
 
how long does this process usually take?

Know of a house with a non-irish owner who has left the country and wants to surrender house to bank after bank didn't allow sale to go ahead due to lower sale price

Do banks then go through the original agent or do they sell their houses by auction? Don't want to miss the sale of the house and have told agent to update me
 
+1 I would also like to understand what process the Bank goes through when trying to dispose of a property that they have taken back in negative equity.

Anyone know?
 
This is a very long winded process. I am currently trying to sell an investment property and the bank are not budging because of how little I have been offered. They are convinced the property is worth more. Every auctioneer I have contacted has told me I have two hopes of selling, Bob Hope and No Hope.

So far I have lost three potential buyers and sadly each have been cash purchasers, each offer was lower than then the last.

The property is a terraced property and the adjoining properties have now become no-go areas. The landlord who owns the whole block, apart from mine obviously, has advised me he will be seeking PP to knock the houses down around me. This of course is a massive concern and will lower the value further.

The bank have their heads in the sand and just continue to send out letters stating that I am in arrears. Arrears circa EUR600.00

Currently I am servicing the debt with my own money and my main residence is suffering because of this.

Any help please?
 
Stop paying them. They may take some notice then.

I am dealing with a case where a sub prime lender is refusing to repossess on a house where nothing has been paid in over 3 years. No amount of goading them is making them budge. The arrears are in the region of 60,000 at this stage and even the letters have dried up. The current occupants are about to abandon the house to the elements, the bank have not responded at all.
 
As they say silence is deafening. I've had the same experience. Not sub-prime in my case but a bank who basically didn't want me near them. I would write to them voicing my concerns and of course I would be fobbed off aggressively. I got to meet with them once and swore I would never meet with them again, shows how intimidated I was.

Very strange that a sub-prime has not taken the bait. I would love to hear the outcome of this and reasons why??
 
I was recently in Court with a client and had the privilege ~ sarcastic ~ of listening to banks trying to seek possession of property. Not one was a Sub Prime lender. Wonder what has these guys so quiet?

Voluntary Surrender is a grey area. The Ivory Tower Brigade would have you believe that it is a simple process of handing the keys back to the bank, simply picking up the NE and paying it over a period of time. The property will then be put up for auction and they will pick it up for a song!

Currently this is not happening at the large scale some thought it would and now they have turned their sights to blaming the homeowner, who is damned if they do and damned if they don't.

They are simply in fairyland and will continue to blame the homeowners for staying in properties they cannot afford and living rent free off the backs of the tax payers. Of course they never consider that the banks will not allow them sell or take offers on their homes.

Rant over but you get my point!
 
My bank IRBC rang today and told us we have to make our mind up by the end of the month, deciding to sell our buy to let or hand it over to them.

Their is approx. 165,000 owed on the property and the market value is only 35,000 due to a neighbour from hell situation.

We have decided we will voluntary surrender the house and see how the bank get on trying to sell it. I don't believe it will sell for years if at all, The only good thing is we will be finished with the neighbours but we will have a ever growing debt.

What happens in this situation? Once you have handed the house over how long do they try and sell it for? And what happens if they can't sell it?

I'm paying my mortgage in full on my principal property and this is also in negative equity by 100,000 approx.
 
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