Assessing actions on bank side to repossess property.

Hi folks,

I'd like to determine the types of action a bank has to take to repossess a property from start to finish.

What follows is my own 'stab' at the initiatives involved on behalf of the bank.

I stress that this is purely conjecture - so any help in amending same is greatly appreciated.

I have not listed costs in euros associated with each action as every case is different..

Once all the actions are listed, i will then research costs based on my case and what could happen hypothetically to me in the future.

I will then post this up..

Original Arrears:
At one point mortgage is being paid. Then it's not or only partially so. Arrears build up. This is what the bank is losing monthly and it appears somewhere on their balance sheet as such.

Communications:
Emails, phonecalls, meetings with 'bank advisor' in local branch or at agreed location.

Contract amendments;
Writing up / amending new split mortgage contract offerings / int. only amended contacts etc.

Court Possession Procedure:
Letter to attend court. Payment to district/high court?, to hear case. To make determination / eviction order etc.

Forced Eviction:
All the costs up to getting evicted from property. Sheriff calling out etc..

Capital write down:
As a lot of houses are in negative equity, bank has to take immediate hit on a sale price much lower than the original mortgage. They might chase for shortfall later but that debt is unsecured..

Loss of ongoing int. ony payments for duration of house sale:
It may take x amount of months for house to sell. In the meantime no payments are being made at all. Family have vacated after forced eviction and renting elsewhere.

Cost to bank of refitting house to saleable standard:
Fixtures/fittings originally bought in addition to house are resold on donedeal.ie etc to recoup lost expenditure on fitting out house originally. Bank will have to pay for refit to make house 'saleable'.

Auctioneer Costs:
Bank needs to contract someone at x% of resale value to conduct sale.

Is there anything i have left out?

Cheers!

HI

They are not the costs of repossession.

They are the cost of a borrower in arrears who is repossessed.

What are you trying to establish?

Brendan

Cost of bank to refit house to saleable standard?

I have seen houses 'sold as seen' or described as 'acts of vengeance' in the UK where they had been internally demolished by the owner who was repossessed, I was just wondering would banks actually spend time and money doing them up to sell?

Hi Brendan,

Apologies, the title of the post should read 'Assessing actions on bank side to repossess property'. (Once a post is posted the original thread title cannot be changed unfortunately)

At this stage i'm not assessing costs, just the list of actions that a bank would have to take with a debtor should both parties fail to agree a resolution and the debtor has to finally turn to bankruptcy.

Hi homecoming,

Yes, house could be 'sold as seen', but obviously a voluntary action to surrender property, or a forced eviction does not take away from the debtors ability to recoup original costs in fitting out house for purpose of paying for bankruptcy or indeed the costs of relocation, deposit, first months rent etc.

The cheaper the house is sold for the higher the crystallised hit the bank has to take especially if the debtor proceeds to bankruptcy.

I understand now, thanks

breakonthru said:

Court Possession Procedure:
Letter to attend court. Payment to district/high court?, to hear case. To make determination / eviction order etc.

Forced Eviction:
All the costs up to getting evicted from property. Sheriff calling out etc..

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I would imagine that if you are in bankruptcy proceeding and the OA gets an order permitting the sale of your home then you would have to give the home to him without delay unless granted by the judge and there would be no "forced eviction".
If you tried to hang on until you were removed by force, you would probably be deemed to be uncooperative and risk court actions. It may also delay your discharge from bankruptcy.
I doubt very much that the banks would invest any money in getting a house to a better condition. Most likely sold in a fire sale in whatever condition they receive it and losses written off. I would fully agree with any debtor removing valuable fittings and metals etc if they have invested in renovating a family home.

homecoming said:

I have seen houses 'sold as seen' or described as 'acts of vengeance' in the UK where they had been internally demolished by the owner who was repossessed, I was just wondering would banks actually spend time and money doing them up to sell?

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I was told recently that owners in Ireland are stripping out houses and selling them on something called 'done deal.' I might have the name wrong but it was something like that.

I was told recently that owners in Ireland are stripping out houses and selling them on something called 'done deal.' I might have the name wrong but it was something like that.

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They are also appearing at the auction and pointing out defects. I'm sure they're doing it for the benefit of the buyer and no malice intended

Bronte said:

I was told recently that owners in Ireland are stripping out houses and selling them on something called 'done deal.' I might have the name wrong but it was something like that.

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Yes, that is what it is called - great site to check if you are looking for something or want to get rid of something you no longer need. http://www.donedeal.ie/