Split Mortgages and Long Term Deals

A

Alwyn

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We have approached our lender to come to some sort of deal or to split our mortgage. Again we have been asked to provide paperwork which we have provided umpteen times before, most recently eight weeks ago. We went into our local branch and explained that we have issued paperwork countless times and felt they were purposely delaying matters and asked to speak to the manager.

We were told to put in writing what we were asking of the bank because they were not allowed give advice???

Would somebody have any pointers in how we should approach the lender with our offer of splitting the mortgage or how to come to an agreement that both the bank and us the debtors are happy with?

Thanks.
 
Hi

Has your bank published a split mortgage scheme? Some banks are pilot testing them at the moment. Have you some information that you are included in this pilot?

I gather that the banks will be announcing their new plans over the coming months. I think you need to wait until then to see what sort of schemes they are considering.
 
Hi Brendan,

We jumped the barrel so to speak after reading an article in one of the national newspapers.

The bank have not published the the split mortgage scheme as yet but from what we have read they are one of the banks that are in the line up to introduce such a scheme.

No, we have no information that we are included in this pilot. How does one become included?

While we are waiting on such a scheme should we continue to meet the interest (what we are currently paying) on the mortgage?

If we cannot resolve the matter we will go to the UK and file.
 
Well, the less you pay, the more pressured the bank will feel into accepting any deal. Deal with them as a business man would.
 
Its tough going Mark12. They seem afraid to make deals??? I think you are right we are going to have to take a tougher stance with them.
 
Its not tough at all for those in negative equity boomtobust, Business is Business, anything more than the current house value is better for the bank and for the taxpayer as well, and will save us a fortune on repossession costs.
If they don't accept your offer, than we will pay for the shortfall, your not to blame for that, they are, for not accepting a genuine realistic offer of more than the property market value, and for making you go for the nuclear option of going to the UK.
 
mark12 said:
Its not tough at all for those in negative equity boomtobust, Business is Business, anything more than the current house value is better for the bank and for the taxpayer as well, and will save us a fortune on repossession costs.
If they don't accept your offer, than we will pay for the shortfall, your not to blame for that, they are, for not accepting a genuine realistic offer of more than the property market value, and for making you go for the nuclear option of going to the UK.
Click to expand...

This is the best bit of sense I have read on here in a while.
 
Hi Mark,


We have heard through a reliable source that our provider are looking to close up shop and are making crazy decisions based around their decision to 'possibly close their Irish division' within the next ten years.


We are looking to stay in our home but pay back what we owe. We have spoken to an accountant who told us that it was not possible to repay all the mortgage and that we needed a write down on the debt. He also said that we should not ask the bank for this yet as they are not in a position to hear it.


We were annoyed by this because as you say business is business and we are not in a position to mollycoddle a bank.
 
Brendan Burgess said:
What mollycoddling is there?

You owe them money for your home, for an investment property and for an overdraft for unspecified purposes.

They have not changed the contract, I presume?

Your ability to repay has changed. You are asking to be mollycoddled, not them.

brendan
Click to expand...


Life is not so black and white, it never has been or will be. The banks took a risk lending out vast sums of money, that's called business and a fundamental of capitalism, the key here being "risk", well the risk is not paying off.
There is a whiole lot of "mollycoddling" going on. The best solution for the country as a whole is to get this mess sorted out, that means, all involved taking stock and sharing the pain. I'm fed up of seeing my local shops/cafe etc closing down because the 30 something generation have to give every spare penny to the banks:rolleyes: Oh the wisdom of that logic:confused:
 
Hi mprsv

My objection was to boomtobust saying that he could not "mollycoddle" a bank. He is not being asked to. He is being asked to repay his loan.

I see the problem for both boomtobust and the bank, which is why I gave a detailed view of his situation and a suggestion for how he should proceed in the other thread.
 
Hi,


We had the property valued recentely and it is worth even less than envisaged. If the property were to be sold we would be left with one very large personal loan.


The obvious answer is to go to the UK and declare ourselves bankrupt. We tried to avoid this happening by paying interest on our mortgage. We have also made deals with all our creditors on unsecured debt.


Quite a lot has been achieved but there is no move on our mortgage provider. Never once have we asked for a write down to present day values (which would make the repayments affordable) but have committed ourselves to pay the mortgage debt in full, down to the very last cent we owe.


We personally believe they are angeling for a repossession that is why they will comply with nothing.


Brendan, unfortunatly we cannot make the full repayments on our loan at present. Some small tweaking or a simple agreement on their half would make this disaster less toxic than it already is.
 
Hi Boomtobust, give it one last try, walk into your bank, ask to speak to a manager. Sit down face to face and ask the following question:
How much do you want for the house? If it's worth say 150K, offer to pay say 200K for it.
Tell them, i propose to pay you 200K in monthly installments for the next say 20 years, forget interest rates, €833 per month for 20 years.
If they agree fine, if they don't, off you go to the UK for a new life.

Bottom line is you offered 50K more than the current value which is in fact still falling, you tried to minimize the taxpayers loss, so no regrets, business is business.
 
Great theory but I don't think these sort of deals are being done in any great number. Different if you were intending selling and wanted some of the shortfall written off, you might have a better chance. I have yet to come across anyone who has managed to get debt amount outstanding reduced and stay in the house.
 
mark12 said:
i propose to pay you 200K in monthly installments for the next say 20 years, forget interest rates, €833 per month for 20 years.
.
Click to expand...

That is the equivalent of €150,000 @3% over 20 years.

The bank would have no interest in such a deal.

While the principle of making an offer as an alternative to banruptcy is fine, I think that the offer would need to include the orderly sale of the home to have any chance of success.
 
Bronte said:
Maybe it is happening but it's confidential.
Click to expand...

We recently sat down with a well respected accountant who deals in this particular field. We asked him were there write downs or undisclosed deals happening. He said no and advised us not to go ahead and ask the bank for a write down as this infuriates mortgage providers; his words not mine.

We had been advised to keep quiet, pay interest and say nothing until next year as it was envisaged there would be a further avalanche of mortgage defaults,"you've seen noting yet" etc. etc.

The banks apparantly are not around to the idea of writing debts down by X percentage but some have no problem in having the house sold at auction at a loss and lob the TAX payer with the deficit, though in our case the bank are not calling for a sale.

We have jumped the barrel so to speak and have pre-empted the potential downward spiral in the economy that maybe 2013.

Brendan, I respect your opinion but unless somebody comes waving cash there is not much hope of a sale. The stastics say 1 in 5 is not being approved for a mortgage. We are based in a working class suburb of Dublin so no great sales potential.
 
mark12 said:
How much do you want for the house? If it's worth say 150K, offer to pay say 200K for it.
Click to expand...

Hi Mark,

We asked them a similar question and they told us that they could not advise us in any aspect of the mortgage and that we would have to approach them with an offer and they would either say yes or no.

We approached them with an offer to pay off the full amount owed but over a much longer term. They were not happy with this but neither said yes or no. They have since requested the same paperwork we issued them with just weeks ago.
 
If you are paying the interest on your mortgage, and the bank is not putting you under any pressure for more, and you want to stay in your house, then you don't need to do anything?

I don't see why a bank would split a mortgage, where the borrower can pay the interest on that mortgage? Their loan is being serviced. Over time, the value of the property may come back or the borrower may be able to pay more. The bank does not need to do anything and the borrower does not need to do anything.
 
Ok i agree, interest only is a relief for many, but soon Boomtobust will want to know will he ever actually own his home? Or will he be kicked out at 60 when the value of his home may be a bit closer to what he still will owe by then?

If the answer is never, is it not prudent to start again somewhere else while he can still work? Also what effect does being in limbo for so long have on his mental health and who pays for that?
 
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