Is this really the best offer of help???

J

JM13

Guest
Our mortage is currently approx 1250.00 per month, we decided in december to arrange a meeting with the bank as we are constantly broke and having to borrow from people every month to ensure all the bills get paid.
Let me add we have never missed a repayment.....

we both work, but haved taken huge wage cuts, my husbands wages have been halfed within the last 2 years. we completed the banks sheet regarding outgoings etc, and we are currently -700.00 at the end of each month.

Today we received a letter stating, we are to be given interest only for 6 month
= Org amount 1632.76,
now 1322.42 - trs 217.62 = 1104.80

also we received a letter detailing the TRS saying our Org amount is 1561.54 .... difference of 71.22

2 things -
Does anyone know why they have given us different org amounts - would i be right to think the 1561.54 is correct as it states from 01/01/2012?

Also does anyone think that offering us a saving of 150.00 approx per month when we are currently -700.00 at the end of each month is plain stupid, how in gods name does this help?
Also in six months when this period is up, our orginal repayment will be higher than ever as we need to repay the difference?????

we are due to go on a tracker in september but by then they may have their keys back.....and help or suggestions about this,

Any advice would be great
 
I'm sorry to say this as I'm sure it's taken time to post, but I do not understand what you are saying or asking.

You say your mortgage is currently €1250 but later in the post it is stated as 'Org amount €1632.76, now €1322.42 - trs €217.62 = €1104.80', then further on 'Org amount is €1561.54 .... difference of €71.22'

Are you on a fixed rate which is due to revert to a tracker next Sept?
Are you in arrears by any chance?

Perhaps you could fill in the money makeover section where people will be able to give you an all round review of your spending if you are in such difficulty.

Also I think the mods might ask you to change the title to make it clearer.
 
1250.00 is what we have been paying each month, which is the org amount less the TRS.
Offer from the bank is 1322.24 less trs = 1104.80
the other org amount = i havent got a clue, they quoted this in the letter stating our TRS details???


Yes on a fixed rate, which is due to revert to tracker in sept., also not in any arrears, but will be this year, as i defo cant keep this up, thought getting in touch with the bank prior to arrears would be the best option but seems not in this case.

will defo take a look at the money makeover section.
 
Hi JM13,

Could you confirm the balance outstanding and the fixed rate you are paying? If they have offered you an interest only repayment, it seems you are paying very little capital at present..

Also, have you much shortterm/unsecured debt? Has this been restructured, or is it just your homeloan you are re-negotiating?
 
Our fixed rate is 5.53% our balance is 282000.00approx, we do seem to be making very little progress on the capital, we dont have any other major debt, its just the homeloan , we never borrowed big other than the house, and it really is just crippling us. we dont overspend, and after filling the outgoings with the bank, which covers the basics, we are -700.00 each month, i dont understand how they think offering this small reduction for a period of time will help?
We bought this house as a home, we could afford it at the time, but now thats changed, i think we maybe better of walking away, i know the debt thats left will follow, but do i even care anymore...not so sure??
 
Doubtless this is very stressful JM13. Are you saying that:
A) -700 each month is an increasing balance,i.e 700 month one, 1400 month two and so on?
Or
B) are you saying your bank balance is - 700 more consistently, i.e. this is an unchanging amount being carried forward?

If A ( which seems to be the scenario) then it clearly isn't sustainable and you need to reduce outgoings to match income and address the debt problem in its entirety.You should complete the money makeover info for a complete review and assistance. If B it seems much more manageable.

You need to clarify the exact nature of the problem,and if you take time to address it in the makeover section, you'll get lots of support, a difficult thing to do when you are stressed as you clearly are. But you can take some comfort in the fact that many people are in the same boat, and there is help available.
 
I don't really follow your numbers either.

However, if you are unable to afford to pay the interest on your mortgage, you have to ask whether or not your mortgage is sustainable. If you don't pay the interest in full, the outstanding balance will continue to rise.

The bank may agree to defer interest but it's probably better for both of you to acknowledge that your mortgage is unsustainable if you do not see any prospect of recovery.

Tell the bank that the mortgage is unsustainable and that you will be putting the house on the market. The bank will probably allow you to sell it even though there will be a shortfall. You will still be liable for the shortfall, but it's likely that the new debt legislation will make a provision for that to be written off if you act in good faith. Just handing back the keys would not be a sign of good faith.

Brendan
 
How much each month (approx.) will your mortgage be once the tracker rate kicks in in Sept? Would that amt. be affordable / comfortable for you?
If so, I would consider trying to stick with the current mortgage until then through borrowing the monthly shortfall from a family member / friend. Would that be possible? Would you be able to pay this back with the spare money available in Sept?

At least you are facing up to your problem and dealing with the banks. Well done on that.
 
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