Advice needed in dealing with KBC Bank

Discussion in 'Mortgage arrears & negative equity case studies' started by comer911, Dec 30, 2016.

  1. comer911

    comer911 Registered User

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    KBC Mortgage of €312k, inc Arrears approx €90k, House valued approx €160k.
    No other debts, and financial situation is now stable. We are back paying €1600 per month for last 8 months, full payment is approx €2600 pm. The payment amount is equal to 45% of net income, and is absolute max affordable due to long term medical expenses. Want to keep house and hoping bank will agree long term restructure at this level. Need some advice on, how best to put forward such a proposal, or what deal could be done with the bank. How would KBC look at such a proposal, and what options would the bank normally consider offering in these situations. Couple, mid 50's, no kids, public sector income. Any advice would be welcome.
     
  2. Brendan Burgess

    Brendan Burgess Founder

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  3. comer911

    comer911 Registered User

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    Brendan,
    I am reluctant to post more information, other than to say household income is secure going forward at €4000 pm net. No Credit Union, no cards, no loans other that the mortgage. Health issues are costing extra but are not a threat to income. Would like to keep house but it is never going to be worth whats owed to the bank. I know that professional advice and assistance will be required eventually, but would feel better if I had some more knowledge and information before I get into the official process. Many posters on here seem experienced and knowledgeable in how these banks operate and how they generally handle these cases. Would just like to know what is the range of restructure options normally offered by KBC. Someone familier with the workings of IMHO told me informally that the best I could hope for from the bank was an offer of a split mortgage. This is an option that I do not want, it will not fix the problem, just pushes it out to the future. At least one poster on here said they were familiar with the inner workings of KBC, so if anyone can tell me what to expect, or how best to present things, it would help me to feel better about the whole mess.
     
  4. demoivre

    demoivre Frequent Poster

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    Given your ages, and the fact banks usually don't give out mortgages which involve folks making repayments after aged 70, your restructure options are limited. The split is probably the best you can hope for and a 50:50 split is the most KBC will do. AFAIK with KBC the warehoused portion is interest free so it's not all bad news, particularly if inflation returns to normal levels and house prices continue to rise at 5 or 6% per annum. If your incomes rise over the new mortgage term a portion of the increase would be used to pay down the warehoused portion.
     
  5. Bronte

    Bronte Frequent Poster

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    Why are you relucant to post more details. It's the only way to get proper advice. Why don't you want a split mortgage. What do you want?
     
  6. comer911

    comer911 Registered User

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    demoivre, thank you for your post, it was informative and positive.
    Bronte, my circumstances are quite unique and I am fearful it may be possible to identify my case if I commit too much detail to paper. I believe there is sufficient information in the original post to get informed, and helpful advice from someone who is more experienced and knowledgeable in the way the bank may respond. But thank you anyway.
     
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  7. TLO

    TLO Frequent Poster

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    The best that you will get by means of an "informal agreement" with KBC, or most lenders, is a partial warehouse. You could force the issue by applying for a "no-veto" PIA, which is a "formal agreement". Once in place, it has the effect of writing the mortgage down to approximately the value of the house, and the monthly payments too. It is particularly useful where there is a desire to retain a family home that is deep in negative equity. Just to note, the mortgage must have been in arrears on 1 January 2015. Noting arrears of €90k, chances are that the mortgage in this case was.

    It is quite a process to go through, but the big advantage is that it gets imposed on the lender. So even if the lender doesn't agree they still have to accept the court's ruling.
     
  8. comer911

    comer911 Registered User

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    TLO,
    Knowledge is vital. The more advice and information you can get, the clearer the problem and the resolution becomes. The more confident you can feel about your situation, the easier it is to find the right solution. Many thanks to all for your posts.
     
  9. comer911

    comer911 Registered User

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    Some updates on my situation.
    I have been working towards getting an informal arrangement with the bank.
    Unfortunately, I cannot afford the restructure offered, as the interest rate being applied is too high and the term too short. There is now no further movement from the bank, so at this point it is most likely that they will quickly demand full repayment of the mortgage. I cannot pay this amount, so repossession proceedings will eventually be started. I know this can be delayed for some time, but it would be a difficult process, with only one eventual outcome, the house being sold.
    A group of family members may now be in a position to make an offer to buy the house from the bank, at market value and rent it back to me for life. This would save a lot of embarrassment and heartache for me, and would give the bank a better return than costly repossession and forced sale.
    Would the bank agree to such an offer, and how best should a proposal like this be put to them. Would it be prudent to use a Solicitor or Accountant, or are there specialized agencies who would handle this.
    Again, any advice would be much appreciated.
     
  10. comer911

    comer911 Registered User

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    Any advice, opinion, or suggestion on this topic would be welcome.
    Thanks.
     
  11. cremeegg

    cremeegg Frequent Poster

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    Have you considered the PIA as suggested by TLO it seems like your best option.

    Bringing family money into a situation like this is usually a bad idea.

    The bank are unlikely to sell if they know that your family members are involved in the purchase , except perhaps through a public auction. It creates the impression that a "deal" was done, no bank employee can afford this.