Bank refusing to give Letter of unsustainabilty

[ellenb]

Have posted already regarding our position but thread title means this current problem may not be addressed so hope it's ok to post seperately.
In MARP process on and off since 2010. Financially things have have become worse since then and we are now on unem

 

[ellenb]

Apologies posted before I was finished. We are now both unemployed and no prospect of things improving unless we move nearer to work prospects. We have decided voluntary sale is only option. Bank are refusing to give us letter under code of conduct to state we have been through MARP process and exhausted all options even though we cannot afford to pay anything to mortgage. We are completely insolvent as one poster put it. Without this letter we can not apply for social housing. Can anyone advise as to what we do here? At this point I am on anxiety medication and I just can't cope with this any more. To decide to voluntarily sell rather than go repossession route was hard enough, we have 2 young children to consider. Bank have been extremely unhelpful but I thought if we offered to sell that we at least would try and get as much as we can, if a buyer can be found, then at least they would give us the letter we need. If we don't get letter we will not be able to apply for social housing as it will be deemed as voluntary homelessness. As if that's something anyone would do. I threatened to voluntary surrender so he said he would check snd call me back but when he did he said it was ulsterbank policy since last year not to state mortgage unsustainable, even if we got an offer on the house. Can anyone help?

 

[Bronte]

. I threatened to voluntary surrender so he said he would check snd call me back but when he did he said it was ulsterbank policy since last year not to state mortgage unsustainable, even if we got an offer on the house. Can anyone help?

Well if they have unilaterly decided they will not as a policy give people letters of unsustainability then you have only one choice. Pay nothing, ignore them and let them evict you.

What kind of carry on is this by Ulster bank to have decided to never issue such letters. They know full well that people need these letters in order to apply to social welfare for housing needs.

And it makes a mockery of the governement stating that we are going to have banks dealing properly with borrowers who have unsustainable mortgages.

 

[Brendan Burgess]

This is very odd, and I may make a late submission on the issue on the Mortgage Arrears Code

In 2011 the rules were changed so that when the lender and borrower agree that the mortgage is unsustainable, you can have a Housing Needs Assessment.

Start with the Social Housing Assessment Regulations.

These were then amended by the SHA(Amendment) (No 2) Regulations 2011

I have merged these two together so that they are easier to follow . This is the relevant extract

[FONT="]Housing need criteria[/FONT]
[FONT="]23. In determining a household’s need for social housing support, the housing[/FONT] [FONT="]authority of application shall have regard to the following matters relating to[/FONT] [FONT="]the household’s current accommodation—[/FONT]
[FONT="]
[/FONT]
[FONT="](ee) whether it has been concluded, under the Mortgage[/FONT] [FONT="]Arrears Resolution Process set out in the Code of[/FONT] [FONT="]Conduct for Mortgage Arrears 2011 issued under[/FONT] [FONT="]section 117 of the Central Bank Act 1989 (No. 16 [/FONT][FONT="]of 1989), that the mortgage on the accommodation is[/FONT][FONT="]unsustainable for the mortgagee[/FONT][FONT="], [/FONT]

mark71 got one without any problem but from IBRC but it was for a buy to let.

Not sure how Earlydays got on

I had direct experience of ptsb only giving the letter the day after an agreed sale closed, leaving the family unable to apply for social housing until after they had lost their home.

 

[Brendan Burgess]

Hi Ellen

What is the last letter you have had from Ulster Bank?

This is what the Mortgage Arrears Code says. So if they agree that your mortgage is unsustainable, they must write to you accordingly. Maybe they don't agree that it is unsustainable?

Brendan

39. If a lender is not willing to offer a borrower an alternative repayment arrangement, for example, where it is concluded that the mortgage is unsustainable and an alternative repayment arrangement is unlikely to be appropriate, the reasons must be given in writing to the borrower. In these circumstances, the lender must make the borrower aware of
a) other options open to the borrower, including voluntary surrender, trading down or voluntary sale, and the implications of each option for the borrower; and his/her mortgage loan account; and
b) the borrower’s right to make an appeal to the lender’s Appeals Board in relation to any of the following:
(i) the decision of the ASU;
(ii) the lender’s treatment of the borrower’s case under the MARP process; or
(iii) the lender’s compliance with the requirements of this Code, including the procedure for making an appeal and the relevant time allowed to the borrower to consider submitting an appeal.

 

[mark71]

Hi ellenb,

This is the letter I received from IBRC back September last year. As Brendan said this is for a buy to let.



This letter was dated 17th September, we agreed to a voluntary surrender and were told it would take a couple of weeks to get the paperwork together.
8 months later, with me ringing every 2 or 3 weeks, we are still waiting to surrender the property.

 

[ellenb]

Thanks for replies. Bronte yes we could sit here but we don't feel that is the right thing to do and in the long run will only hurt us by building up more and more arrears. Plus my kids are just about to start school so the last thing we want is to have to uproot them when they have just settled into school, so going now makes more sense.
Thanks for letting me see the letter, much appreciated.
I think the problem lies in that the lender isn't it certainly feels they are under no obligation to do this. Also they will not say our mortgage is unsustainable, seem worried if repercussions from central bank.
There appears to be lots of support and help out there or on its way for those who are desperate to stay in their home. And rightly so. However those of us who cannot afford long commutes and cannot find work locally and feel only option is to sell or voluntarily surrender, there appears to be no where to turn.
We got no info when we visited a FLAC solicitor. New Beginnings say they are if more help before people wind up in our situation so could only tell us what we already knew.
We are writing a letter to the bank outlining the history of our situation, highlighting the errors and mistakes and delays caused by the bank and demand this letter.
Our agent says they won't give us a letter and head office say that last SFS do at beginning of April was not looked at by underwriters.
Agent has said he will look for a further 6 month moratorium while we sell house so that means we won't get the letter for at least another 6 months even if they would give it to us.
I cannot get over that this can happen.

 

[ellenb]

We are considering taking house off the market and insisting last SFS is looked at by underwriters and then presumably they would have to send us a letter outlining our options. We have not discussed extending term. 23 yrs left and hubby would be 63 so am I right in assuming most we could extend by us a further 2 years, which would not help any? I was told today another moratorium would not be offered as we have already availed if a 3 month break. We are worse off now than when we entered into MARP process in 2010. Last SFS showed no availability so perhaps this might force their hand? Any thought?