What are your thoughts on the MARP process?

hastalavista said:
Clubman, for waht its worth
the THEORY is that if u use the MARP process that it is done by a separate department who will coordinate all the other bits within the same organization
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My friend needs to seek an extension (e.g. another 6 months) of the interest only repayment option and this time it looks like it does have to go via MARP/SFS etc. Maybe the process was too new when the original application went in or something (early 2011)?

Anyway - I gave a hand to fill in the forms and was a bit surprised by some of the details. For example total omission of TRS from the mortgage repayment details, suggestion that last three utility bills be summed and averaged which may give misleading results (e.g. biased low for summer months and high for winter months) etc.

Also PTSB were the only lender who seem to provide a useful Excel version of the form which is a lot easier to deal with than a paper one.

Finally - stuck in a two page covering/explanatory letter with additional details (and a "sales pitch" :)) in case the form alone didn't capture these adequately...
 
Clubman, The MARP/SFS is nonsence without the covering letter. You did right by sending the letter with the MARP form, by doing this the bank will get a better understanding of the situation.

Does MARP ever cease or does a bank keep agreeing to it being renewed every six months?
 
Wishes said:
Does MARP ever cease or does a bank keep agreeing to it being renewed every six months?
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Can't answer that myself but I would imagine not automatically and certainly not indefinitely - especially if no or little progress was being made on dealing with arrears (not an issue in my friend's case), other unsecured debts (this is an issue here) and eventually getting back to paying at least some of the capital down. In that case I presume that they'd have to make a judgement call on whether or not the mortgage in question was sustainable long term and if not take appropriate action up to and including repossession?
 
Wishes said:
Does MARP ever cease or does a bank keep agreeing to it being renewed every six months?
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I'm in the MARP process, and with BOS Certus, it is only 3 months at a time - not 6. And they take 2 months to process forms so very frustrating process. Hard to understand the forms, and the cover letter is a must as it is a voice is a sea of figures!!
Good luck with this.......
 
I am in the MARP process myself. I don't see it lasting much longer as each time I send my application back, every three months, I see the attitude of the bank becoming less friendly each time.

I have no problem surrendering the property but this has not being made an option.
 
Peter54 said:
I have no problem surrendering the property but this has not being made an option.
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Surely MARP is not a one way process and YOU can suggest this as an option if you feel that it may be the most pragmatic solution all round?
 
Hi Clubman, I have been wary to do so as the property is almost 200k of negative equity.

Do you think they would release me from the mortgage if I were to surrender the property?

I have been apprehensive to ask them the question as I felt this could jeopardise my position in MARP??
 
Peter54 said:
Hi Clubman, I have been wary to do so as the property is almost 200k of negative equity.
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But you just said you have "no problem" with surrendering it!?!?
Do you think they would release me from the mortgage if I were to surrender the property?
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I'd imagine they want to be repaid - if not in full then to the maximum extent. But what's possible is all down to negotiation I guess.
I have been apprehensive to ask them the question as I felt this could jeopardise my position in MARP??
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Maybe I'm a bit naive but I don't see how that could happen.
 
I will make an appointment to meet with them again.

I am currently paying a half interest only payment.
 
Peter54 said:
I have no problem surrendering the property but this has not being made an option.
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From the perspective of the Bank property surrender is an option. However it is only a realistic one if your own position is such that the alternative is an expensive Court process. All banks have an obligation to treat customers (even delinquent ones) with an appropriate level of professionalism and respect. I acknowledge that given some of the posts re the MARP process many banks are falling down on this requirement. This is more a result of incompetence and fear of making a mistake rather than a deliberate tactic.
If you are in employment and an SFS review of your financial position indicates that you have an ability to make some level of cpital repayments then there is no benefit to the Bank in accepting a surrender of your house and agreeing to let you walk away from the balance of the debt. If your financial position is such that you make make no capital and only a token interest contribution then you are in a stronger negotiating position. I.e. You can effectively tell the Bank that you will co-operate in a voluntary sale of the property provided that they accept this as a full settlement of your debt. They may well refuse but their options are limited. Court proceedings threat is an empty one if your financial position is effectively zero capacity to repay any debt so let them do their worst.
 
Thanks 44Brendan.

I am employment but my wages is not large enough at present to cover full capital and interest payments.

I have told the bank that I am actively seeking a second job.

I read in one of the Sunday newspapers some weeks ago that banks were not bothering seeking repossessions on properties that were paying 60% of the interest. Is there any truth to this?
 
My marp process has come to an end. The bank will not be renewing it. They are filing for a repossession order. Does anyone know when I will be before the courts if the order is filled this month?
 
@ wishes - suggest you could consider contacting new beginnings here : http://www.newbeginning.ie/ - they should be able to answer your question and give you some comfort in how following a recent court ruling it may take years for your lender to obtain possession.
 
Thanks for your response Kaplan. I thought if they filed this month it would end up in court around January and I would have until March / April to vacate the premises.
 
Could easily take years once it enters the courts system. In any event the final repossession order would be stayed for 6 months to a year.
 
Thanks Time. I have yet to formally receive a copy of the order but I did receive a letter that stated they would send a collections team to my home.
 
An update on my friend's situation ... BoI originally gave them 6 months interest only which seemed to be outside the scope of MARP (e.g. no SFS etc.) for some reason (possibly because it was not fully up an running at the time or something?). They went back onto full capital + interest repayment for December while a follow up application for another 6 months interest only went in this time under MARP (i.e. with an SFS + covering letter). They just came back with an affirmative response to this with no additional questioning/hassle. There are no arrears in this case and while the financial situation is tight it looks to me like it is ultimately sustainable especially once some additional unsecured debts are cleared with the aid of the interest only periods. A significant dent has already been put in one of these (CC balance down from €7K at the start of the year to €500 now).

One aspect of all of this was a bit confusing for them. The new interest only offer stated an estimated interest only repayment based on the prevailing rate applicable. However this is a 2 year fixed rate which ends next month. So a separate letter arrived outlining the new rates on offer which are significantly higher. In this case my friend assumed that the interest only offer repayment was what was signed up for. It's a pity that the two issues (MARP interest only applicable and end of fixed rate period and new rates on offer) were not dealt with together. The lender is not strictly at fault here but I can definitely see how the different letters might be misleading to some customers - especially those who are not that interested or bothered (or able?) to read and understand them in full.

Also - the old 2 year fixed rate was a fairly competitive 2.65% but the new rates on offer are significantly higher. Can't remember the details offhand but the interest only repayment (gross - i.e. ignoring TRS) is currently around €500 but will jump to €900 or more. And while I would normally have suggested that they take, say, another 2 year fixed rate the monthly premium over the SVR on offer is about €190 which seems a steep price to pay for fixed repayments.
 
With UB and was on iterest only for 1 year which ended this November. They sent me out MARP forms which i completed and return. I get a letter from them dated 28 Nov (about 4-5Weeks after I returned them ) advising that " important information was missing" I have been calling them non stop since and I am always told that they have to get my forms from admin and that they will call me back they have even gone as far as to give me a time at which they would call and still nothing. I really dont know what else to do. We are not in any arrears with them, unable to pay full mort as Husband had Tumour and is unable to work. I only Job share and have managed to get an extra days work per week so just managing to get by. only have 16 years left on a ,€160k mortgage and hoping that they will extened term by 6 years so that we can afford to pay full mortage. It has come to the stage were I am going to have to let this months payment bounce in the hope that they will then contact me !!!
 
Hi justasking,

go into your local branch and ttry and get them to take on your case - the Collections and Recovery unit in Ulsterr Bank is completely unable to cope with the volume of requests they are supposed to deal with but pressure from local branch may get you somewhere.

Meantime, if you need to bounce the next payment, you can (apparently) demand that they backdate whatever arrangement you come to if the delay is on their side.
 
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