Cleared arrears with redundancy payment, but can't meet repayments now as still unemployed.

Dublin777

Registered User
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Hi I am new to this forum and seeking some advice about my financial situation at present.
I took a voluntary redundancy package because after going through a divorce I had accrued a lot of debt including mortgage arrears.
I used the redundancy payment to clear all my debts including 17000 mortage arrears.
My problem is I underestimated how long I would be out of work and now find my self unable to pay mortgage this month.
 
Home value 350000
Mortgage balance 235000
Income is social welfare at the moment of 217 per week
3 children
13
14
18
Oldest lives with me full time other two children 50% of week
No loans or savings
I was marp but haven't heard anything since I cleared my arrears.
Lenders aib
Tracker mortgage
House has to be sold when youngest child reaches 23 years old in 10 years and proceeds divided equally

I am actively seeking work and am sure is only a temporary problem but 217 per week is to cover utilities ,food and petrol plus mortage so it's impossible at the moment
Idealy I would like to keep the home until my kids finish school as per term of divorce.
Sorry about the length of my post
Rewards
 
I was marp but haven't heard anything since I cleared my arrears.

You need to talk to AIB again.

They should facilitate you given that you showed good faith in clearing your arrears with your redundancy.

Even if they do not facilitate you, they have not got a hope in hell of getting an order for repossession against you.

What is your interest rate? A mortgage of €235k at say 1% is €2,350 interest per year or €200 per month or €50 per week. Can you pay that? If so, ask nicely to switch to interest only. If they refuse, just pay the interest only.

Then write to them telling them what you are doing.
1) Set out your history in full.
2) Point out that you acted in good faith and cleared the arrears.
3) Set out your efforts to find a job
4) Ask again that they switch you to interest only for 12 months so that you can avoid further arrears.
5) Tell them that even at that, you and your children are making huge sacrifices to pay the interest.

When writing the letter, think of the County Registrar in the repossession court who will be reading it. She will see that you are trying hard, and engaging fully with the lender.

If they refuse, you could also contact the Irish Mortgage Holders Organisation.

Brendan
 
House has to be sold when youngest child reaches 23 years old in 10 years and proceeds divided equally

I suppose this is fair as you will have the benefit of the house and the other person has to rent (or whatever) but it means you pay the mortgage and any upswing goes both ways.

Are you entitled to anything else from social welfare for your mortgage, there used to be a system for paying the interest but I think it no longer exists, but do ask SW, the CWO and citizens advice to get an idea of your options.

How much is the mortgage, most of the repayments are capital as you have a tracker presumably. Can you extend the term.

Because it's AIB, as far as I know IMHO might be of help to you with no costs.
 
Have you applied for mortgage interest supplement ?, you are eligible seeing that you are currently unemployed.
 
Thanks for the replies and excellent advice I will hopefully be back working soon if not I will seek the advice of the IMHO.
 
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