Talk to PIP now or after voluntary sale?

E

ellenb

Registered User
Messages
65
Our house is currently sale agreed and our lender is looking for us to do an SFS based on us renting elsewhere.
Even with us getting rent allowance, there will not be enough left over to pay all of our debts each month in full.
Lender is suggesting that whether we hand keys back or voluntarily sell, we will still have to pay the balance at the tracker rate over the remaining term.
I have told them that if we could agree to do that, then we wouldnt be losing our home right now.
At this point it does not appear to be of much benefit to us whether we sell it ourselves or vol surrender. We will probably owe alot more but for now whether we owe €60k to lender or €100k to lender, neither amount is something we can afford to pay back for the forseeable.
To go down the vol sale route, there is no guarantee the lender will consent to sale either because of offer we have (which we think is pretty good considering the market here) or because we have little if anything to offer to pay back shortfall.
We also have a large credit union loan that we need to sort out.
Should we engage with a PIP now or after sale? I feel like we need to get good advice. We have tried all the state agencies and charities and at this point of the journey, none of these know what to do.
We are probably facing having to go bankrupt however I know we need to have dealt with a PIP before we can do that.
Any advice and any recommendations of a PIP that charges a reasonable first consult fee? We really are on our knees and I know their advice will probably be the best €5k I will ever spend. I just dont have €5k. I'd still be in my home if I did.
Thanks anyone.
 
I'm a bit concerned that you have already agreed to sell your home without first negotiating a comprehensive agreement with your bank as to how the shortfall should be handled. I would recommend that you engage with a PIP immediately and before you sign any contracts in relation to the sale of your house. Negotiate fully with the bank before taking any drastic action. I don't know what your personal circumstances are but my recommendation is to consider your position very carefully before agreeing to sell your home. I notice from a previous post that you have a very valuable 1.5% tracker. You must use this in your negotiation with the bank. If you sell the house before reaching a settlement with your bank, your negotiating position is very much weakened. Get it all sorted in advance and in writing before completing the sale. A few hundred euro now for a good PIP will be a sound investment.
 
Thanks Dr Debt for your reply. We have asked for a negotiation on the shortfall but the lender is adamant that there will be no debt forgiveness and that the shortfall will remain due no matter whether we sell it or they do.
We are prepared to relocate in order to be closer to work and education purposes. Losing our home is well I don't know how to describe it really. But staying put with no future ahead of us is not something we are willing to consider for us or our children either. Our house is in the border area and while everywhere has been hard hit, we stand a better chance of getting back on our feet in a city. So allowing the sale of the house is technically not an issue for us. But obviously we want to negotiate the best possible terms. Tracker rate is actually .75%. Sickening, I know.
I appreciate your advice to consult with a PIP now. Can you or anyone recommend someone in Dublin?
 
Hi Ellenb,

Firstly I hope everything works out for you. It's a tough situation your going through.
I would back up the advice of finding a PIP fast! Things could look a lot better for you after meeting one. Have your payslips, mortgage and other debts all written down and statements are really important. I would be working on that immediately.
The mortgage bank/company is not playing ball with you and you seem resigned to losing your home. The threat of bankruptcy from a PIP if they do not allow you in a PIA(personal insolvency agreement) would see them lose a lot more than if they agreed a deal.
For bankruptcy vs insolvency see here;
http://www.askaboutmoney.com/showthread.php?t=184919

A PIP should outlay their fees, if a deal is successful. See other threads here about fees.
see here for discussions about fees;
http://www.askaboutmoney.com/showthread.php?t=183931

Do not panic and agree to anything they offer before seeking proper advice. An initial meeting with a PIP should tell if you are suitable for an agreement and whether your lender might agree.

There are lots of discussions here about bankruptcy and insolvency and some even have blogs with daily diaries. They are useful i.m.o.

Hope things work out for you.
 
ellenb said:
Any advice and any recommendations of a PIP that charges a reasonable first consult fee? We really are on our knees and I know their advice will probably be the best €5k I will ever spend. I just dont have €5k. I'd still be in my home if I did.
Thanks anyone.
Click to expand...

From my personal dealings with a PIP, there was only €150 up front fees, after he had done a huge amount of work and had a few meetings. The rest of his fee is subject to the PIA being successful. He will get approx €7000 over 6 years. It comes out of payments towards my lenders/PIP
 
Yes, the whole process is based on a PIP getting the bulk of his fees through a deduction from the negotiated monthly repayments!
 
Thanks everyone re fee advice. As for lender being scared with the "I will file for bankruptcy option", I have already used that to no avail. We will try and engage a PIP at this point to see if they take him/her more seriously.
There do not appear to be any real common sense approaches being taken in these situations.
My estate agent has told me of situations where they had a buyer for houses, bank refused to accept the offer and then 6 months later coming back to see if the buyer was still interested and either getting told where to go or being offered an even lower offer than before.
Either way, the lender (let alone the mortgage holder) lost out big time and these are not isolated incidents.
The "case by case" approach the lenders are allegedly taking appears farcical to me. They have the same approach no matter the circumstance or where the house is located.
No common sense and no one in charge to manage the cases. Anyways, rant over.
I believe bankruptcy is our most likely outcome but we still must get a letter from a PIP to state this option is our best one. Can anyone recommend a PIP to us?
 
You must log in or register to reply here.
Back
Top