Case study We have been removed from the protection of MARP. What are our next steps?

K

Kerrigan

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Hello,

Last week the day came that we had all been dreading; my wife and I where formally removed from MARP. Without being dramatic our lives have changed; we're concerned, confused and my wife has not stopped crying. I feel a failure. I've failed my family and failed to convince our lender that our circumstances will improve.

For obvious reasons I cannot go into details but we had been in contact with a PIP who was confident a solid proposal to our lender would be accepted i.e. recapitalize arrears, warehouse a portion of the mortgage or lengthen the term of the term etc.

All proposals were refused on the grounds we where not showing sufficient payment capacity. We were told we could appeal the decision but there would be no change so there maybe no point.

At the moment we are repaying full interest and 50% capital each month.

We have been assured that the lender will not commence legal proceedings but how can take this as truth?

Realistically when can we expect to receive a court date?

Thanks for reading.
 
Disclaimer: It's not possible to provide a full response unless you provide the full information e.g. which lender it is.

Kerrigan said:
We have been assured that the lender will not commence legal proceedings but how can take this as truth?

Realistically when can we expect to receive a court date?
Click to expand...

OK, have you this in writing?

The most important thing to do is to get it in writing.

I would write to them and say

"I refer to my phone conversation with Joe Murphy on 22nd of January.

We are very upset that we have been taken out of the MARP.

We are paying the interest in full and half the capital.

I note Joe's assurance that you will not be commencing legal proceedings for repossession.

Please advise the significance of exiting the MARP."

In reality, don't worry. If you are paying the interest in full and half the capital, no court will give order for possession.

Brendan
 
Thank you Brendan. We are on an interest rate of 4.5% with a lender who has one foot out of the country so any form of deals does not appear to be on their agenda.

We do not have the written assurance from the lender that repossession proceedings wont take place. This was a verbal confirmation and of course one we wont be taking as Gospel. We are going to our local council tomorrow to apply for government housing as I understand this should be a step we take.

The reasons we were told by the lender that MARP wasn't working is because we fell into arrears whilst in the resolution process and this has simply made them uneasy.

1. Inability to pay the loan in the time duration. Our PIP has said with some tweaking of the loan agreement the loan is affordable. Apparently the loan term simply requires lengthening. As it stands we have fifteen years left on the mortgage. The PIP says the loan should be elongated to 30 years as we are both under the age of 40 and if this was done we would not have to apply for a PIA.

2. And we fell into arrears whilst in the MARP process. Apparantly this concerned the lender and they are simply not in a position to offer us another reschedule.

Also just to confirm we could pay both P&I in full each month if the loan term was stretched out. The funny side of the situation is the amount would be less that what we are currently paying!!!
 
You have not failed: Your lender is being wholly unreasonable. We constantly see such unreasonableness with certain lenders.

You now need to control your own life. Your PIP has provided you with the solution: Do a PIA and stretch out the payment term.

If
  • You were in loan arrears as at 1 January 2015 (or the mortgage had been restructured prior to date)
  • and if you have no other creditors
  • then the courts can oblige the lender to accept the PIA.
If
  • You were in loan arrears as at 1 January 2015 (or the mortgage had been restructured prior to date)
  • and if you have other creditors
  • and if the other creditors vote in favour of a PIA
  • then the courts can oblige the lender to accept the PIA.
Jim Stafford
 
Thank you both.

So far all proposals have been turned down on the grounds that they are outside bank criteria. A split mortgage, lowering of the interest rate for a two year period and elongating the loan term have also been turned down hence we have been formally been removed from the M.A.R.P.

We were also informed lender would fight against a PIA; of course we do not have this in writing.

The PIP has now advised a PIA is the way forward and we have begun the process of sending all relevant documentation to them.

We intend to continue paying our mortgage each month.

P.S. We are no longer dealing with the lender as they are gone from Ireland but instead a type of asset management company on their behalf.
 
Out of interest, how long does it take to receive instructions of your first court appearance prior to your removal from the M.A.R.P?
 
Update - Our appeal to re-enter M.A.R.P. has been turned down and we've been informed that within three months the lender can begin repossession proceedings.
 
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