What to do about mortgage arrears and possibility of receiver being appointed?!

[Little Frown]

I am hoping someone can help with a little bit of advice.

Basic Info
Outstanding Mortgage Debt-- €275,000
Realistic Market Value of House- €230- 240,000


Background is that I bought house in Dublin in 2004 and lived there quite happily with no problems with mortgage repayments. In 2010 I moved back to UK (where I have been since) due to pregnancy complications and illness. I had rented a room in 2007 and until about 2013 I was making full repayments on the mortgage. Since then I haven’t made mortgage repayments due to not being able to work and house has been empty since. I was in discussions with Ulster Bank and they weren’t exactly the most helpful as they keep trying to exclude me form MARPS process, etc. Anyhoo they sold the debt and I have been in discussions with Capita about the outstanding debt for last 9 months (ish). They have finally assessed that I have no financial capacity to make repayments (I don’t) and have rejected my offer of a voluntary sale and a token amount to the remaining debt. They want to appoint a receiver immediately. I don’t know what I should do? I don’t know much about how this works but my head tells me that appointing a receiver will mean less for the sale of the house and therefore I will end up owing more. I know that as I live in the UK (and no intentions of returning to Ireland) that they would have to follow me to the UK and try and get the debt enforced here. My thinking (as flawed as it is) was that if it is for a debt of €20-30,000 this wouldn’t be very attracted as compared to a debt of €60-80,000. Why would Capita prefer appointing a receiver over a voluntary sale?


I really want to make this go away and if I had the money I would seek legal advice and fight them as the situation just ‘feels’ wrong.


Any and all advice very welcome!


Thanks


Little Frown

 

[Joe_90]

Have you tried to rent it out?

Perhaps the bank are looking at an asset that has not been rented since 2013 and thinking you have not made a reasonable effort to rent it out and therefore they will get a receiver to rent it out.

Then when it is in positive equity sell it and you will have not debt.

 

[Little Frown]

I have looked at renting it out & discussed that option with Ulster Bank but I didn't/ don't have the money required for redecoration, minor repairs etc to make it rentable. Then the likely income from rent would not cover the mortgage repayment and would be about €200ish per month short. Also as I'm not in the country there is the difficulty of me being able to act effectively as a landlord.

If renting was a viable option I would have gone for it just to sit it out until prices (hopefully) come up and I could sell and discharged mortgage. However Capita have not even discussed renting it out. From the first conversation they made it clear their preferred option was to get the debt cleared and didn't want to enter into an 'ongoing' arrangement.

Little Frown