Wrong forum Individuals negotiating with banks

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AnyAdvice

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From reading the various threads on this website & others, it appears that the banks are only agreeing % mortgage write-offs for large developers whereas individual mortgage holders have no bargaining power and banks are not giving any consideration to re-structuring proposals.

Considering that tools such as facebook and twitter have been used to organize sections of society to drive change (e.g. the arab spring revolution), could the ordinary people of Ireland who are sinking with their mortgage debt and negative equity group together on a county/regional/demographic basis into sub-groups of 10-20 individuals and approach the bank as a group with a clearly defined re-structuring proposal?

These groups could for example consist of 10 individuals from the same city (e.g.Dublin) who plan on emigrating within 6 months and need to re-structure. The idea is that once a group connects together and puts together a re-restructuring proposal that they are prepared to "strategically default" or reduce their monthly repayments together as a demonstration of their increased bargaining power.

Here is an example:


  • 10 individuals with combined mortgages Euro 4m (all with BOI) meet and pull together a full outline of each individuals financial situation (job loss, reduced income etc)
  • A realistic re-structuring proposal is documented explaining the rationale behind the proposal e.g. 20% write-off as related properties are 30% in negative equity and income levels have reduced by 40% since 2007.
  • It is clearly communicated that the group are at risk of defaulting on their mortgages i.e. Euro 4m.
  • The group could also hire a solicitor/accountant with the final preparation/negotiation of the proposal which would be alot cheaper than if they were on their own.

This post will hopefully spark some discussion/ideas/next steps to help liberate those with unmanagable debt....:)
 
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