Got offer on house, bank wont answer

Discussion in 'Mortgage arrears & negative equity case studies' started by SandraD, Sep 28, 2015.

  1. SandraD

    SandraD Frequent Poster

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    Asking for a relative
    His marriage broke up 4 years ago, kids all grown and moved away. Ex wife is renting (and has never contributed to repayments) and cant afford to pay towards mortgage. They are not divorced as yet and separation agreement was that house would be sold.
    He had been paying full mortgage (over 900 euro) on his own and when he couldn't sustain it, the bank allowed him to pay 400 pm for a set amount of time. However last year, he was hospitalised and was out of work for 6 months only getting 188 pw, that's when everything fell apart. He could not go back to paying full mortgage and continues to pay 400 pm. He has been on to the bank to re structure but they wont agree a lower payment or restructure
    The house has been on the market for the last 4 years but as its in a very rural location, there has been little interest and only 1 offer which was 70,000. He owes the bank 135,000 at this stage. The house is on the market for 120,000
    In July he got an offer of 110,000 and wrote to the bank to ask them if they would accept that figure, to date there has been no reply.
    Last week, he got a letter to say that the house would be repossessed.
    Has anyone been in this position?
    Now he might lose the prospective buyer and interest is still building
     
  2. 44brendan

    44brendan Frequent Poster

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    This sounds extraordinary but not unique!! Who is the bank? Has this man gone to a PIP or other professional advisor? A strong letter now needs to be sent to the bank fully identifying his co-operation to date and the absence of a response from the bank. I would copy this letter to the CEO's office as a complaint. No court would grant re-possession in the circumstances as outlined. You need a professional to take on this case as it appears likely that the Bank Case manager is either negligent or deliberately not responding to correspondence.
    It is important that the letter to the bank fully outlines the process with the Bank to date. Ensure that dates of contact by the debtor are specified and that the absence of a response has led to the current position and potential loss of a willing purchaser of the property.
     
  3. SandraD

    SandraD Frequent Poster

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    The bank is PTSB
    It just seems as if he is being given the run around. He just wants to get rid of the house at this stage as keeping it is just not an option anymore
     
  4. 44brendan

    44brendan Frequent Poster

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    Yes I have heard a number of similar stories regarding PTSB. A complaint will need to be logged against them in the format I discussed in my earlier post. I acknowledge that he needs to get rid of the property. However if he just does nothing and lets re-possession take its course he is liable for the shortfall on sale plus legal costs. Better that the initiative is in his hands and that a voluntary sale is accepted in full settlement of his liability. In this context it would be well worthwhile getting a competent financial advisor to act on his behalf. This would also take the worry directly off his shoulders as the FA would deal directly with PTSB and their legal agents. He currently holds the moral high ground given that PTSB have failed to respond to him re the offer on the property.
     
  5. SandraD

    SandraD Frequent Poster

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    Many thanks 44brendan
     
  6. SandraD

    SandraD Frequent Poster

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    Well this is still dragging on
    He complained to PTSB about their lack of response and they eventually replied basically saying what they have been all along, that he still needed to pay over 900 a month. He was told by them to ignore all of his personal loans and just pay the mortgage.
    They are not willing to write off the debt and say he will have to repay it
    He has just received an offer on the house of 120,000, he owes PTSB over 140,000 at this stage

    The estate agent has said that he should jump at this offer as the house now needs a lot of work and the chances of even getting a similar offer are slim

    He has again wrote to PTSB asking them to accept this in full and final but doesn't hold much hope of getting a reply and this potential buyer , like the last ones will possibly get fed up waiting and buy elsewhere

    In the early stages of having problems paying, he contacted a PIP who lost interest in him when he said that he wanted the sell the house and has since issued a bill of 1200. On top of that he is going to have to pay estate agent fees and solicitor fees

    He is just so down at this stage and we are getting worried about his mental health.
     
  7. Brendan Burgess

    Brendan Burgess Founder

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    What is his income at present?

    How much is he paying?

    If he is paying the full €900, then why would ptsb do any sort of deal?

    I assume from the figures that he is paying very little?

    There really is not much that he can do. ptsb does not write off debt.

    His solicitor could write to ptsb informing them that they will apply to the High Court for permission to sell the house and that they will hold ptsb liable for the costs. There is some way of doing this, but it would be expensive. The threat usually works.

    He will still owe the shortfall and ptsb won't write it off.

    ptsb is dead right on this. Some people claim that they can't afford the mortgage while paying the credit union in full.

    However, if he can't get a reasonable settlement from ptsb, then he should just ignore them. He should prioritise his own welfare and health. Then he should build up a fund so he can afford the deposit on a house to rent or the fees of a PIP.

    If he provides the following information, he may get a more comprehensive answer:

    Information required for mortgage arrears and negative equity questions
     
  8. jjoy80

    jjoy80 Registered User

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    any update? did ptsb deal?
     
  9. SandraD

    SandraD Frequent Poster

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    Here is the update
    He was eventually offered 130,000 for the house in September 2016. Bank gave permission to sell and asked for all the paperwork again which was sent. He had to have the house valued again and get updates about property tax and water scheme.

    The loan offer to the purchasers was due to run out this week and he has just heard back from his solicitor that the sale has now fallen through as he (the solicitor) could not get in contact with anyone in the shortfalls department of PTSB to progress the sale despite e mails and phone calls.