Capitilsation/Term Extension

Discussion in 'Mortgage arrears & negative equity case studies' started by Anon2013, 11 Jul 2018.

  1. Anon2013

    Anon2013 Registered User

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    Long story short we regretably fell into arrears on our mortgage due to unemployment. Both back working and keen to get our mortgage account back on track. We've paid €1000 pm since our return to full employment 5 yrs ago but in negative equity.Bank proposes capitalisation and term extension of €1600 pm which i feel we cant afford. Pip has suggested a Personal Insolvency Arrangement but im worried what happens if its not approved. Really stressed and beginning to affect our health..
    Anyone been through similar ?
     
  2. Webster

    Webster Registered User

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    47
    Ask the bank for a longer term extension to bring the rate down to a more affordable level like 1400 euro, you need to provide your age and how long is left on the mortgage and the outstanding capital amount (roughly) so that posters on this forum can give better advice to you.
     
  3. Anon2013

    Anon2013 Registered User

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    6
    Thanks for reply,my first post was deleted i presumed because it was too specific? I dont know.

    We are both mid 30s and an approx figure is about 350k incl arrears. We were only 5 yrs into the term when unemployment hit. They propose 10 more years so i think we would be about 63yrs.

    Im so worried,we have 4 children college fees etc in a few years-i dont know what to do.
     
  4. Leo

    Leo Moderator

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    9,346
    Is this it? Posts don't get removed for being too specific unless by request of the poster who may have shared too much information making themselves identifiable.
     
  5. Brendan Burgess

    Brendan Burgess Founder

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    36,147
  6. Jim Stafford

    Jim Stafford Frequent Poster

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    From what you say it is clear that your were in mortgage arrears as at 1 January 2015 = you qualify for a "No Veto" PIA (subject to conditions). What a No Veto PiA means is that if the bank vote no, the courts can enforce the proposal.

    In fairness to the bank, they are already prepared to extend the term 10 years. They would have calculated what you can afford etc

    As your PIP has all of the necessary info, he is the best person to consult.


    Jim Stafford
     
  7. Anon2013

    Anon2013 Registered User

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    6
    Thanks,i appreciate the reply. The Pip has mentioned a PIA but hasnt really explained whats involved. I would just be afraid if we went down that road we could lose our home:-(
    So worried. Anyone any experience of PIA-doesnt seem to be much online.