Sad state of affairs but not surprising in this country. And to really rub the taxpayers nose in it, the bank does'nt appear to have taken an equity stake in the house to allow them to recoup the losses in the future as prices eventually recover or even if the family in question come into money.
Why is this a sad state of affairs? A family in total financial meltdown have been given a solution and they get to stay in their home. Your solution is what, the family should just give up, as that's what they would do if they were forced to hand over the house once the mortgage was paid off.
Where did it say anything about total financial meltdown in the Indo? They both have jobs, 1 in a job for life. And why would handing over the house = 'family should just give up'. A bit dramatic there Bronte.
My solution would be for the house to be handed over, a debt arrangement agreed that they could afford for a couple of years and after say 3 or 5 years, their remaining debts are written off.
But debt responsibility seems to be a dirty term in this country now, only to be adhered to by fools
It makes you wonder why people will pay PIPs if the IMHO will do this job for free.
Nobody is doing anything for free. IMHO may be free to the family, but someone, I imagine AIB are paying IMHO.
As for the Pip's and the insolvency service, total joke so far. Another not fit for purpose quango and system.
Let's take your scenario, bank would probably lose more on the deal, because of the NE,
A fair point.the bank does'nt appear to have taken an equity stake in the house to allow them to recoup the losses in the future as prices eventually recover or even if the family in question come into money.
Hi - does anyone know if, in these type of arrangements, there are any tax implications for the recipient ? ... specifically a gift tax liability relating to the value of the loan being written off ...... or would the Revenue view this as an arms length commercial arrangement and so ignore? Ta.
What has this family's history of engagement been like?
This is also a key issue. If the family has been struggling for 5 years and fully engaging with the lender, then they have probably taken enough pain and deserve to get a deal.
We don't know whether they have been engaging or not. We don't know whether they drive 2 cars (high spec, new or old and clapped out) instead of 1. We don't know what sort of lifestyle they lead...holidays, eating out etc. It's all cloak and dagger stuff.
Whereas their neighbours in a similar enough situation, could be earning slightly more but living far more frugally. But they'll get nothing.
There should have been at least a stake kept in the house by the bank. At a minimum
What's it got to do with you? Would you prefer they went on RTE and detailed their financial situation and we could then have a public vote as to whether they should get a deal or not?
People are commenting on a media story with very little detail. The bank have obviously decided that this deal maximises the recovery value on the loan. Do you want every deal that AIB makes to be given to you so can approve first? Stories like this should not be reported. Then there wouldn't be any moral hazzard.
Hi Sunny
It's very important to report these types of deals as they allow others to know what to expect. AIB says that they write down debt in certain cases, but if we don't know anything about those cases, people don't know what to do.
I would have advised this couple that their mortgage was unsustainable and that they should surrender the house and try to do a deal on the shortfall. Now it looks as if that advice may have been wrong. They might get to keep the house and get a write down.
AIB won't publish their criteria in case people engineer their situation to meet the criteria.
That advice mightn't be wrong next time though Brendan. The banks have always said it is on a case by case basis. Leaking this to the media makes it sound like this is now standard operating practice for AIB. It's not. We don't know the specifics of this case and we never will. Therefore what was gained by running the story? All it has done is probably given people false hope that all they have to do is ask for a write off and then come on this site moaning when they don't get it.
I look forward to seeing all the posts on here in years to come when Dail committee's and tribunals are investigating the generous debt write off's of the politically connected/related etc. Because this is Ireland and that will happen
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?