Mortgage in arrears and negative equity, but 69 year old joint borrower

[Jim Stafford]

The 39 year old could have done a PIA, but her PIA would have left you saddled with the residual debt.

Capitalising the arrears and paying €250,000 over 20 years at 4.49% would cost €1,580.27 per month. The bank may agree to an interest rate reduction if you properly engage with them.

Your difficulty is your current age: the bank will be very reluctant to keep the loan going until you are 89. They may insist on a formal charge on your existing apartment.

If the 39 year old rented out rooms she could probably afford the new payments. She should acknowledge herself that if the property is re-possessed it will be very difficult for her to get back on the property ladder again.

You should submit a written proposal to the bank's solicitors, and request a meeting with the bank.

Jim Stafford

 

[Gordon Gekko]

If I was the 69 year old, I'd be looking to divest myself of my assets...

 

[sellornot]

You should submit a written proposal to the bank's solicitors, and request a meeting with the bank.

What should the written proposal state, is it up to us to make a proposal or the bank to suggest something that they might agree to

 

[sellornot]

Is it possible that a bank would agree to let me a 69 year old buy myself out of the mortgage
so that the 39 year old could apply to extend the mortgage, and possible also get a PIA
sellornot

 

[Jim Stafford]

Is it possible that a bank would agree to let me a 69 year old buy myself out of the mortgage
so that the 39 year old could apply to extend the mortgage, and possible also get a PIA
sellornot

Obviously, I believe any bank would allow you to buy yourself out of a mortgage. The real question is at what price!

Different banks have different strategies, and on a public forum such as this I am unable to comment on specific banks.

You should submit a realistic proposal to the bank's solicitors. (Normally the banks suggest a solution, but you appear to have gone beyond that point.)

Jim Stafford

 

[sellornot]

Thanks Jim

 

[Brendan Burgess]

Is it possible that a bank would agree to let me a 69 year old buy myself out of the mortgage
so that the 39 year old could apply to extend the mortgage, and possible also get a PIA
sellornot

Look at it from the lender's point of view.

• The gave a big loan to a borrower because there was a joint borrower as a guarantor
  
• The house is now in deep negative equity
  
• The mortgage is in deep arrears
  
• The borrower is acting so irresponsibly that the bank is forced to take legal action, which it only does as a last resort
  
• The joint lender has assets which could be targeted.
  
• The joint lender is asking if the lender will facilitate a PIA!

I would imagine that Bank of Ireland might let you off the loan, if you cleared the negative equity i.e. paid €100k off the loan.

Brendan

 

[sellornot]

would imagine that Bank of Ireland might let you off the loan, if you cleared the negative equity i.e. paid €100k off the loan.

when the house is remediated of the pyrite issue the negative equity might not be €100k

 

[Brendan Burgess]

As of now, it's €100k.

And it will be difficult to sell.

As a lender, I would not let anyone off the hook.

Brendan

 

[sellornot]

You should submit a realistic proposal to the bank's solicitors. (Normally the banks suggest a solution, but you appear to have gone beyond that point.)

Solicitors for the bank says if you wish to discuss your situation or make any repayment proposal regarding your account, you should telephone the bank's contact centre. I have been calling the bank for the last 3 days but cannot get to talk to my case manager
sellornot

 

[Andy836]

Make sure to tell all of this to the court.

Make sure to blame everything on the original borrower.

Question for others - if the bank gets a judgement against SellorNot what is the likelihood of another court enforcing it?

 

[sellornot]

Make sure to tell all of this to the court.

Make sure to blame everything on the original borrower.

Question for others - if the bank gets a judgement against SellorNot what is the likelihood of another court enforcing it?

Not sure what you mean there Andy

sellornot

 

[PGF2016]

Make sure to tell all of this to the court.

Make sure to blame everything on the original borrower.

Question for others - if the bank gets a judgement against SellorNot what is the likelihood of another court enforcing it?

What do you mean original borrower? There were 2 borrowers and sellornot is one of them.

 

[Brendan Burgess]

I am not a lawyer, but I understand that the lender will have to go through the following steps
1) Get an order for possession against sellornot and the other borrower.
2) Sell the property
3) Get a judgement against sellornot for the shortfall
4) Get a judgement mortgage against sellornot's own property.

The first step will take about two years if the borrowers do nothing and the bank works very efficiently.
The rest of the steps are fairly automatic after that.

If sellornot wants to sell his apartment, the judgement mortgage will have to be paid first.

It's unlikely that BoI would seek the sale of sellornot's home, but they could.

Brendan

 

[sellornot]

The first step will take about two years if the borrowers do nothing and the bank works very efficiently.

The Borrowers can do nothing if the bank (BOI) will not meet and discuss a solution

Sell the property

sellornot has no problem with the bank selling the property
sellornot has no problem paying the shortfall
The other joint holder is living in the property and paying something and could pay more if the mortgage was restructured

 

[sellornot]

Look at my user name sell or not = sellornot

It's unlikely that BoI would seek the sale of sellornot's home, but they could.

sellornot is willing to sell his home to sort this out ounce and for all

 

[Brendan Burgess]

The other joint holder is living in the property and paying something and could pay more if the mortgage was restructured

The other person could pay more full stop. Whether it is restructured or not, they can pay more and should do so.

Otherwise, the bank will come after you - but you seem to be ok with this.

Brendan

 

[sellornot]

but you seem to be ok with this.

no I am not ok with this, It is I who got her to this point, paying anything and its my intention to
get her to pay more and eventually pay the full repayments, there is also the question of the arrears
I am willing to pay a lump sum off the mortgage but I want my name removed from the account.
That's why I would like to sit down with the bank preferable before the court date and work this out,
in the mean time repossession is a possibility. so is there any point in her paying more.
By the way I should say Mabs are helping with this too

sellornot

 

[Andy836]

What do you mean original borrower? There were 2 borrowers and sellornot is one of them.

I thought sell or not was just a guarantor?

Rereading I see my error. Jt borrowers.

 

[sellornot]

I thought sell or not was just a guarantor?

It makes no difference Joint borrower or guarantor

Question for others - if the bank gets a judgement against SellorNot what is the likelihood of another court enforcing it?

I am not sure what you mean by that remark Andy

sellornot