epicaricacy
Registered User
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- 206
Well done Brendan on generating an interesting debate. I've been slow to reveal our own story on AAM for obvious reasons - but I believe it may help others.
My wife and I bought a property in 2006 for north of 300k on a 100 percent mortgage.
We both lost our jobs in 2010. We continued to pay our full mortgage for a further 18 months out of our redundancies until our funds were depleted. We then contacted our bank and entered the MARP process, whereby we paid about a third of our full mortgage for 12 months.
At the end of the MARP, the bank's underwriters suggested a voluntary sale as they believed that our mortgage was unsustainable.
We appealed - on the basis that we'd paid the full mortgage for 18 months (out of our redundancies) had never failed to pay restructured amount, our arrears were less than 8k, that the house was in massive neg equity and that we could see ourselves recovering in the near future as the economy improved.
We lost our appeal and bowing to the inevitable, we agreed to sell our house on the bank's behalf. We met with our bank manager and he assured us that the bank would probably write off the shortfall.
After we sold the house, the bank wrote to us with a 26 year repayment schedule, whereby we would have to pay 800 per month for the 26 years - which equated to 90k interest in addition to full shortfall.
We decided that our only option was to move to the UK and petition for bankruptcy.
Our bank was (is) one of the Irish banks.
In conclusion:
(1) A wealthy cash investor bought our house and is now renting it out. So much for the argument that repossessions will free up property for first time buyers.
(2) The bank took a hit of 180,000 - which is probably being footed by the tax payer.
(3) Solicitor's and Estate's fees were paid by bank (tax payer).
(4) We 're now paying rent to another wealthy landlord.
(5) As the economy has improved - as I mentioned in our appeal - we're slowly managing to start again. Not helped by the banks' refusal to give us a basic account - as was mentioned by another poster a few weeks ago.
My wife and I bought a property in 2006 for north of 300k on a 100 percent mortgage.
We both lost our jobs in 2010. We continued to pay our full mortgage for a further 18 months out of our redundancies until our funds were depleted. We then contacted our bank and entered the MARP process, whereby we paid about a third of our full mortgage for 12 months.
At the end of the MARP, the bank's underwriters suggested a voluntary sale as they believed that our mortgage was unsustainable.
We appealed - on the basis that we'd paid the full mortgage for 18 months (out of our redundancies) had never failed to pay restructured amount, our arrears were less than 8k, that the house was in massive neg equity and that we could see ourselves recovering in the near future as the economy improved.
We lost our appeal and bowing to the inevitable, we agreed to sell our house on the bank's behalf. We met with our bank manager and he assured us that the bank would probably write off the shortfall.
After we sold the house, the bank wrote to us with a 26 year repayment schedule, whereby we would have to pay 800 per month for the 26 years - which equated to 90k interest in addition to full shortfall.
We decided that our only option was to move to the UK and petition for bankruptcy.
Our bank was (is) one of the Irish banks.
In conclusion:
(1) A wealthy cash investor bought our house and is now renting it out. So much for the argument that repossessions will free up property for first time buyers.
(2) The bank took a hit of 180,000 - which is probably being footed by the tax payer.
(3) Solicitor's and Estate's fees were paid by bank (tax payer).
(4) We 're now paying rent to another wealthy landlord.
(5) As the economy has improved - as I mentioned in our appeal - we're slowly managing to start again. Not helped by the banks' refusal to give us a basic account - as was mentioned by another poster a few weeks ago.
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