Hi,
I have done my best to read as many posts as possible in order to get the best advice possible. As we are not legal eagles or accountants we are beginning to lose sleep over this, to such an extent that it is beginning to effect our ability to go to work and generate revenue from our business. We have never attended a court and find the whole prospect of being persued for our family home incredibly stressful especially as we have made efforts to negotiate. When we took on the mortgage for our investment property, we made sure that our home was not offered as security on it. Coupled to this, the fact that our family home has a tracker mortgage and if Pepper force a sale, we will lose it's considerable value. I have attached as much information as possible.
Sequence of Events
On 9th Sept asked to put together SFA for Pepper. We submitted it on Friday 21 November 2016. They declined our proposal on 21 December 2017 and gave us 20 working days to submit an appeal. On 9th Jan, we sent them an email saying we were in the process of getting accountant to negotiate on our behalf and need 2 weeks to submit details. On the 9th Jan (same day), Pepper came back and said they would not give us any more time. On the 12th Jan 2017, We gave them details of an accountant who would take over on our behalf. This accountant asked us to get valuations for the property.
On the 16th Jan 2017, We phoned Pepper to get a response on the email from the 12th Jan 2017. Pepper sent a template for us to sign that day saying that the accountant is now authorised to deal on our behalf.
On 28th of January, Pepper sent me a letter containing statement of account (total amount owed + arrears), included was a letter asking us to come in and talk to them to review the loan and a proof of indentity. They asked us to forward them this within 21 days.
On 1 Feb, we get a letter from Pepper's solicitors asking us to pay back the loan in full.
On 15th Feb we receive a letter from the receiver.
On 15th Feb, I send a letter to Pepper asking them whether I could sell the property myself as I could possibly get a better price as opposed to a rushed sale. Later that day, they emailed to say they were declining this offer.
Income details
Net monthly Self: 2250 euro with potential for strong growth
Income history: Myself and my spouse began building a localisation business in the year 2000 and at its height it was turning over €1.2 million. We lost the business in 2010 as an international client with whom we had nearly 90% of our business with was taken over. We spent a number of years trying other business ideas and startups and in 2014 started a company which is now beginning to show strong potential.
Net monthly income partner/spouse: 2250 euro with potential for strong growth
Income history: Same as above
Amount of child benefit received: €260
Amount of Mortgage Interest Supplement received: 0
Personal circumstances so we can calculate your reasonable living expenses
We require a car for work and we have two teenage kids who go to the local community college. They are 13 and 16 years old.
Reasonable living expenses: €2,240.65 (got this for isi.gov.ie)
Home loan
Lender: EBS
Amount outstanding: 300,000
Value of home: 450,000 - 500,000
Interest rate: Tracker
Years Left: 15
Monthly repayment : €1757
Amount in arrears : 0
Summary of discussions and agreements with the bank:
we were in arrears in early 2016 but after paying the full mortgage, the arrears were consolidated in January 2017.
Investment property - Delete if not applicable
Lender: Permanent TSB recently sold to Pepper
Amount outstanding: 277204
Value of home: 170,000 - 190,000
Interest rate: Variable Commercial loan
Note: Two weeks ago receiver has been brought in to sell the property. Solicitor says they will go after family home for the shortfall.
Amount in arrears: 30,000
Investment property Italy
Lender: Banco di Napoli
Amount outstanding: 50,000
Value of home: 120,000
Interest rate: About 1.78%
Note: This week we have put the property up for sale but property market not great in Italy so am expecting at least a year for a sale
Amount in arrears: 0
Other loans and creditors - delete those which don't apply to you
Overdraft - amount outstanding: € 5,750
Overdraft - monthly amount you are paying: € 250
Credit Card - amount outstanding: € 9,450
Credit Card - monthly amount you are paying: € 150
Term loan Amount outstanding: €20,200
Term loan - monthly repayment: € 150
Other savings and investments
Do you expect any lump sums in the medium term future?
I have recently been told that I can withdraw up to €25,000 from my Company pension
How important is retaining the family home to you?
Which of the following best describes your situation?
I really want to keep the family home as it is ideal for our family's requirements. In addition to this, my kids are entering leaving cert year and being forced to sell would place a lot of stress on the family.
Any other relevant information
What is your preferred realistic outcome?
Consolidate, that is recapitalise with EBS and bring down total monthly Debt and pay Pepper something.
Mortgage of 300 (but tracker)
Repay Pepper 100 or make them an offer but probably need up to 100K
Consolidate debt of 35,400 with above recapitalisation
My Maths: Assume tracker worth 100k, give EBS discount of 30% to entice them
New Mortgage (variable/fixed) = 230,000 + 35,400 + (100K to pay off pepper)
New Mortgage = 365K (Debt consolidated + Pepper paid off)
Italian propery sold after 1 year to bring down mortgage to
365K - 70k = 295K
Could also release some pension of 25K if necessary to bring it down to 270k
Other Information:
As mentioned earlier, we have absolutely no experience with courts and the legal system here in Ireland. We are looking for advice on what to do and how to proceed. My wife and I are very stressed over this.
Many thanks.
I have done my best to read as many posts as possible in order to get the best advice possible. As we are not legal eagles or accountants we are beginning to lose sleep over this, to such an extent that it is beginning to effect our ability to go to work and generate revenue from our business. We have never attended a court and find the whole prospect of being persued for our family home incredibly stressful especially as we have made efforts to negotiate. When we took on the mortgage for our investment property, we made sure that our home was not offered as security on it. Coupled to this, the fact that our family home has a tracker mortgage and if Pepper force a sale, we will lose it's considerable value. I have attached as much information as possible.
Sequence of Events
On 9th Sept asked to put together SFA for Pepper. We submitted it on Friday 21 November 2016. They declined our proposal on 21 December 2017 and gave us 20 working days to submit an appeal. On 9th Jan, we sent them an email saying we were in the process of getting accountant to negotiate on our behalf and need 2 weeks to submit details. On the 9th Jan (same day), Pepper came back and said they would not give us any more time. On the 12th Jan 2017, We gave them details of an accountant who would take over on our behalf. This accountant asked us to get valuations for the property.
On the 16th Jan 2017, We phoned Pepper to get a response on the email from the 12th Jan 2017. Pepper sent a template for us to sign that day saying that the accountant is now authorised to deal on our behalf.
On 28th of January, Pepper sent me a letter containing statement of account (total amount owed + arrears), included was a letter asking us to come in and talk to them to review the loan and a proof of indentity. They asked us to forward them this within 21 days.
On 1 Feb, we get a letter from Pepper's solicitors asking us to pay back the loan in full.
On 15th Feb we receive a letter from the receiver.
On 15th Feb, I send a letter to Pepper asking them whether I could sell the property myself as I could possibly get a better price as opposed to a rushed sale. Later that day, they emailed to say they were declining this offer.
Income details
Net monthly Self: 2250 euro with potential for strong growth
Income history: Myself and my spouse began building a localisation business in the year 2000 and at its height it was turning over €1.2 million. We lost the business in 2010 as an international client with whom we had nearly 90% of our business with was taken over. We spent a number of years trying other business ideas and startups and in 2014 started a company which is now beginning to show strong potential.
Net monthly income partner/spouse: 2250 euro with potential for strong growth
Income history: Same as above
Amount of child benefit received: €260
Amount of Mortgage Interest Supplement received: 0
Personal circumstances so we can calculate your reasonable living expenses
We require a car for work and we have two teenage kids who go to the local community college. They are 13 and 16 years old.
Reasonable living expenses: €2,240.65 (got this for isi.gov.ie)
Home loan
Lender: EBS
Amount outstanding: 300,000
Value of home: 450,000 - 500,000
Interest rate: Tracker
Years Left: 15
Monthly repayment : €1757
Amount in arrears : 0
Summary of discussions and agreements with the bank:
we were in arrears in early 2016 but after paying the full mortgage, the arrears were consolidated in January 2017.
Investment property - Delete if not applicable
Lender: Permanent TSB recently sold to Pepper
Amount outstanding: 277204
Value of home: 170,000 - 190,000
Interest rate: Variable Commercial loan
Note: Two weeks ago receiver has been brought in to sell the property. Solicitor says they will go after family home for the shortfall.
Amount in arrears: 30,000
Investment property Italy
Lender: Banco di Napoli
Amount outstanding: 50,000
Value of home: 120,000
Interest rate: About 1.78%
Note: This week we have put the property up for sale but property market not great in Italy so am expecting at least a year for a sale
Amount in arrears: 0
Other loans and creditors - delete those which don't apply to you
Overdraft - amount outstanding: € 5,750
Overdraft - monthly amount you are paying: € 250
Credit Card - amount outstanding: € 9,450
Credit Card - monthly amount you are paying: € 150
Term loan Amount outstanding: €20,200
Term loan - monthly repayment: € 150
Other savings and investments
Do you expect any lump sums in the medium term future?
I have recently been told that I can withdraw up to €25,000 from my Company pension
How important is retaining the family home to you?
Which of the following best describes your situation?
I really want to keep the family home as it is ideal for our family's requirements. In addition to this, my kids are entering leaving cert year and being forced to sell would place a lot of stress on the family.
Any other relevant information
What is your preferred realistic outcome?
Consolidate, that is recapitalise with EBS and bring down total monthly Debt and pay Pepper something.
Mortgage of 300 (but tracker)
Repay Pepper 100 or make them an offer but probably need up to 100K
Consolidate debt of 35,400 with above recapitalisation
My Maths: Assume tracker worth 100k, give EBS discount of 30% to entice them
New Mortgage (variable/fixed) = 230,000 + 35,400 + (100K to pay off pepper)
New Mortgage = 365K (Debt consolidated + Pepper paid off)
Italian propery sold after 1 year to bring down mortgage to
365K - 70k = 295K
Could also release some pension of 25K if necessary to bring it down to 270k
Other Information:
As mentioned earlier, we have absolutely no experience with courts and the legal system here in Ireland. We are looking for advice on what to do and how to proceed. My wife and I are very stressed over this.
Many thanks.
