Voluntary surrender process

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1qwerty

Guest
Hi I am looking for someone who has voluntary surrendered their ppr.
We have signed the voluntary surrender forms from the EBS last week.
I would like to know what type of process other people have gone through and a timeline of what happened to them


Bit of background.
We have explored all other options renting, selling and rent a room.
The house is 200k in negative equity.
Health reasons are preventing work now and in the future.
 
Somebody wrote a draft outline of a property surrender letter on one of the threads and they intended to send it to the bank. It was a well written letter and he got feedback on how to tweek it from other posters. It is on a recent thread but I cannot remember where it was unfortuneately
 
We have signed the voluntary surrender forms from the EBS last week.
.

Hello 1qwerty and welcome to AAM. Any chance you could write out the wording on the voluntary surrender form? We haven't seen one of thise here on AAM.

Hopefully this solution works out for you and ends the nightmare of your current situation. It's good to see that the EBS are willing to let you work through this. Have you done the negotiation with the EBS yourself or did you use a professional?
 
Hi Bronte, I wish they were willing to let us work through this but they have been very slow in returning any calls and solicitor letter (normally 4 weeks for any question).They have acknowledged the mortgage is unsustainable and i think this is why they don’t want to deal with ourselves
 
Surrender of possession of mortgaged premises to EBS limited

Surrender of possession of mortgaged premises to EBS limited

Prior consent of spouse to surrender of property (which is or has been a family home) pursuant to the family home protection act 1976
Name..................hereby consent for the purposes of the family home protection act 1976 to the surrender of the property below to EBS limited.
Date....................
Signed by the said in the presence of ..................................
Borrowers(s) ..................................
Mortgaged premises .............................
Date of mortgage...................
Current address of borrower 1
Current address of borrower 2 (if different)
I/we the above borrower(s) of the current address (es) above in view of my/our indebtedness of EbS limited and in view of the power of sale grated to EBS by virtue of the mortgage of the date above, hereby voluntarily surrender possession to EBS limited of the above mortgaged premises in order that EBS may exercise its power of sale
I/we hereby confirm that I/we have been made aware that surrendered possession of the premises, we will have no right to enter or regain possession to the premises and acknowledge that the premises will be sold and the proceeds used to discharge and sums due to EBS limited including the cost of sale. Any surplus thereafter will be used (as far as it required) to discharge any other debts which are secured on the mortgage premises.
Delete as appropriate
I/we hereby certify that during the term of our ownership of the mortgaged premises the said premises comprised our principal private residence.
Or
I/we herby certify that for the part of the term of our ownership of the mortgaged premises the said premises comprised our principal private residence.
Or
I/We hereby certify that during the term of our ownership of the mortgaged premises the said premises was never our principal private residence.

I/We confirm that our new address for correspondence and service of notices is ...........
I/We further acknowledge that in the event that there is a deficit on my/our account with EBS limited after the premises are sold and the proceeds applied to my/our account, I/We will continue to be liable to EBS limited for payment of this deficit under the terms of my/our mortgage.

I/We confirm that I/We have been advised by EBS limited to take independent legal advice in relation to my/our voluntary surrender of possession and I/We have
*(A) declined to do so
(B)Taken independent legal advice form.......................
Name of solicitor....................
Address of solicitor....................

I/We undertake to assist EBS limited and its solicitors in the event that any documentation is required form me/us to complete the sale of the property.

I/We acknowledge that we have removed any articles of value from the premises and that any items remaining there may be removed by EBS limited and disposed of as they see fit. I/We confirm that we will have no cause of action or claim against EBS limited in relation thereto

Signed by borrower 1:
In the presence of:
Witness signature:
Witness address:
Witness occupation:

Signed by borrower 2:
In the presence of:
Witness signature:
Witness address:
Witness occupation:
 
Hi Bronte, I wish they were willing to let us work through this but they have been very slow in returning any calls and solicitor letter (normally 4 weeks for any question).They have acknowledged the mortgage is unsustainable and i think this is why they don’t want to deal with ourselves

200k in negative equity is a good enough reason too. What is going to happen with the shortfall ?
 
That's the problem in agreeing to sign this form. It should have been agreed with the Bank that the balance of the debt would be W/O!
 
What is going to happen with the shortfall ?
The honest answer is nothing I will never have the finances to pay this off now or in the future.
I have a few options
Ignore it and hope it goes away when the bank realises the possibility of working is gone for health reasons.
Move up north and declare bankrupt after the required living time
Personal insolvency legislation in Ireland when its signed into law

We bought a house at the top of the housing market that was not close to family and support. After not paying any payment on the mortgage in over 2 years we owe the bank more than we originally borrowed! The arrears are accumulating every month with no hope ever of paying off. Losing the house is inevitable building up 3 or 4 years more arrears will not solve anything
 
1querty, thank you very much for posting that up. I'm glad for you that EBS are recognising the situation you are in and allowing you to deal with the problem without going to court.

Are you still in the house? Does the EBS want you to stay there until the property is sold?

If after it is sold you cannot afford the shortfall thenmaybe the EBS will just write off the debt? That would be the logical thing to do.
 
Hi Guys, My wife and I have decided to go into PTSB some time soon and voluntary surrender our house I was wondering if anybody heard how other cases have got on with this bank in the past I have been looking through AAM and cant seem to find any. We are in huge negitive equity and getting into deeper arrears every month we are both unemployed and we have a 35 year tracker mortgage. We feel we have no choice as we have used up the last of the small amount we had in savings. So any info on past cases would be great.
 
Hi we are still in the house and the form have been with them but they have not called us back except for the usual 1650 on a Friday evening leaving a voice message

2on2 i have to agree with you. it comes to a point when the mortgage is unsustainable and something needs to be done as you cannot pay this off even if you make payment for the rest of your working life
 
Hi Bronte, we are not getting mortgage interest supplement as we have only been paying a token to the bank to show that we are trying to pay something and we are paying well below our interest. The bank have been in contact with us and want us to start paying at least the interest but this is just not going to happen as we just do not have it. If we just had the mortgage we would manage but like everybody else we have all the other bills that come in and we have cut right down. We just do not see any light at the end of this so we are hoping the bank will let us sell. I understand a judgement will be taken out on us but we have looked at all the options and feel this is the best way forward so we can try and move on with our lifes. The pressure and worry all the time worrying about where to find the money for this and that is just too much we feel there must be more to life than this every day. We have a young baby so the faster this happens the better for us. So if anybody has experience with PTSB on voluntary surrender of their house I would love to hear how you got on...
 
Perhaps its time for AAM Mods to draft up a procedure, if possible for the Voluntary surrender of one's home.

I'm sure it would go along way to aiding those in difficulty.
 
The bank have been in contact with us and want us to start paying at least the interest but this is just not going to happen as we just do not have it. If we just had the mortgage we would manage but like everybody else we have all the other bills that come in and we have cut right down. .

Most people who come on here want to keep the family home but you don't and I think you're right. Long term is is unsustainable for people to be part paying off their mortgage with massive arrears building up. Fair enough for a year or two to get people out of a difficult period but not longer than that.

By not paying the mortgage you will force PTSB's hand. They will be forced to take you to court to get possession of the house. Write them a letter telling them you are unable to pay the mortgage, that you are willing to voluntarily surrender it and see what they say. I presume you are already in the Marp process. When they do eventually sell the property you will be liable for the shortfall but as you are on social welfare no court will order you to make much of a payment (instalment order) if any. As you've left go of the house in your head you're on your way to getting what you want.

One question for you, what do you mean if you just had the mortgage you would manage?
 
Perhaps its time for AAM Mods to draft up a procedure, if possible for the Voluntary surrender of one's home.

.

It's actually about time the banks and the government got around to dealing with this mess. Talk talk talk and still no legislation. And the legislation that is proposed has the banks handprint all over it. :mad:
 
Hi we are still in the house and the form have been with them but they have not called us back except for the usual 1650 on a Friday evening leaving a voice message

You came on here to ask others what was the procedure, but you're actually the first, it must be a new procedure and EBS are probably feeling their way on it.

It is in their interest that you stay in the property until it can be sold I would have thought for a few reasons. It's hard to sell quickly right now, unless you go the firesale with Allsops route. Better a house is occupied than unoccupied as it can deteroirate quite rapidly. Also would need to be watched to prevent squatters and vandals etc. Boarding up houses costs money and brings property values down even further etc. And who better to mind a house than the 'owners'.
 
This "Surrender Form" is a one-way deal. It should not be regarded as some kind of solution to anyone in arrears on their mortgage. By signing the form the mortgagor(s) is relinquishing posession of the property to the Bank/BS. If the property is subsequently sold for less than the mortgage outstanding the Bank/BS are fully entitled to pursue the borrowers for the residual debt.
Anyone considering relinquishing their PDH to the Bank should certainly do so, if the associated mortgage is unsustainable. However, it should only be relinquished on the basis of a satisfactory agreement in respect of the residual balance.
 
I have done alot of reading up today on voluntary surrender of home and I have come across something that has worried me. In a few articles I have read some have suggested that they could stop our social welfare payments if we were to voluntary surrender our home but that would leave us with nothing, I was wondering if anybody can tell me if this is true and is this a step they would likely take or even has it happened in the past??
 
2on2:They would not stop your welfare payments if you could not afford your mortgage. I think the information you might of come across is on no fixed abode or moving back to parents house. The second could affect your payment if they are means tested.

Once your house is in the process of voluntary surrender process you can apply to have your housing needs assessed (rent allowance etc)




Quote from section 6 from Housing.ie Housing needs assessment guidance notes revised




One of the basic elements in assessing whether to give social housing support to a household is to establish whether
that household has a need for that support. The principal way in which a housing authority determines whether there
is a need for support is to assess the household’s current accommodation and household circumstances. Regulation
23 sets out the specific matters which a housing authority takes into account in making a determination as to the
suitability of the household’s current accommodation, as follows:
1. if the accommodation the household currently occupies is an institution, emergency accommodation, a
hostel etc, or the household has no accommodation (i.e. sleeping rough);
2. whether the household is currently living in overcrowded conditions;
3. whether the accommodation is unfit for human habitation;
4. whether the accommodation is unsuitable for reasons of a physical, sensory, mental health and/or
intellectual disability within the household;
5. whether there are serious medical or compassionate reasons as to why the accommodation is
unsuitable;
6. where there are shared households and the applicant household has, in the opinion of the housing
authority, a reasonable requirement for separate accommodation; and
7. other grounds where the accommodation is materially unsuitable or there are compelling medical or
compassionate grounds.
If the applicant, or any member of the applicant’s household is living in their current accommodation for a period of
less than 3 months, the authority should request details of other previous accommodation(s) occupied by members of
the household. This is important as the local authority must satisfy itself that there is an accommodation need and
that there is no alternative accommodation currently available to the household that is suitable to their needs.
In cases where the household states that it is being forced to leave their current accommodation, a housing authority
may bypass an inspection of the existing accommodation where there is certain documentary evidence to support
the applicant’s claims, such as:
copies of court orders for eviction;
notices to quit;
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institutional discharge orders, etc.
In circumstances where the household is being evicted or has received a notice to quit their current accommodation,
it is important that the housing authority investigate the reasons for the eviction order/notice to quit in order that the
authority can take appropriate action at allocation stage in the context of their wider estate management role under
section 14 of the Housing (Miscellaneous Provisions) Act 1997.
In cases where the applicant claims that it is no longer possible to live in the family home, the decision of eligibly for
the authority rests on whether it is reasonable for the applicant to seek to obtain social housing support to secure
alternative accommodation. In accordance with Regulation 23, authorities should take into account whether:
the family home is overcrowded or unfit for human habitation;
whether their current accommodation is appropriate to meeting any special housing need;
there is a concern as regards violence or abuse happening in the family home;
there is a requirement for the applicant to live elsewhere for full-time education/employment reasons;
there is a requirement for the applicant to live in a different location for reasons of facilitating access to
children by way of a formal custody agreement.
The housing authority will require documentary support to confirm the circumstances where a person if seeking to
move from (or cannot return to) the family home, e.g. documentary support from a social worker or a member of An
Garda Síochána.
Housing authorities may, in special circumstances, allow that, while the current accommodation is suitable to meet
the needs of the applicant, at present, it is reasonable to assume that this will not be so in the future. This allows
housing authorities a certain level of discretion, on a case by case basis, to allow that a person in currently adequate
accommodation could be assessed as having a housing need if there is a high probability that there will be a housing
need in the near future which, if not addressed, could put the applicant at risk of homelessness. One example of this
would be where a person with an intellectual disability is residing with elderly parents and, while their accommodation
is suitable at present, it will not remain so should the parents die or become unable to care for the person with the
disability. In this case, a housing authority could undertake a housing assessment on the basis that the applicant’s
current accommodation is not suitable to meet their housing need.
Another example would be where a private homeowner has unsustainable mortgage arrears such that the
accommodation is in the process of being repossessed and the homeowner is unable to afford rental accommodation
in the private sector and seeks to access the range of social housing supports. In these circumstances the following
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procedure should be followed. Where a borrower and lender have agreed to a voluntary repossession (after
pursuing any reasonable forbearance measures) the lender should complete a statement setting out the forbearance
measures that have been explored to sustain the mortgage and the borrower in their home and confirming that,
despite these measures, the mortgage is not sustainable and a voluntary repossession has been agreed. Upon
receipt of the statement and confirmation in writing, a housing authority may proceed to assess the household’s
eligibility for, and need of, social housing support, following the completion by the borrower of the required application
form and the provision of the required documentation. This assessment should take place in accordance with section
20 of the 2009 Act and the Social Housing Assessment Regulation. Housing Finance and Policy Development
Section of the Department will be issuing further guidance on the treatment of such cases in the near future.
In relation to the matters set out above which authorities must consider in making an assessment of ‘need’,
consideration should be had to the following legislation and guidance.
 
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