S
Seamie12
Guest
Hi,
I purchased a two bed appt in June 2008 where my current mortgage outstanding is €260K but the value of the appt is only €130K. Im making reduced mortgage payments of €800 a month with the full repayment at €1,200 so Im getting into arrears of €400 a month. My current arrears amount is €3K.
Im unable to make full repayments because of salary cuts over the years.
I registered with New Beginnings and they gave me two viable options that they would fight for me.
These options are not strictly in law as of yet but New Beginnings assured me that they were in the pipeline to come into law.
1.
DSA (Debt Settlement Arrangement) where in simple terms I would lose my home. The Bank would sell the appt and the negative equity of €130K wouild become an unsecured loan which I would part pay over a period of 5-7 years .
So for instance typical payment would range from 15k-35k based on what they believed I could afford. At the end of the 5-7 years I lose my home but I am debt free. This is similar to the case of the Nurse who won her case against BOI. New Beginnings fought against the banks in this scenario.
New Beginnings said that the DSA would be the easier option to acheive.
Or
2.
PIA (Personal Insolvency Arrangement) where I keep my home. So I pay interest only on my mortgage for a period of 5-7 years and some or all of the negative equity of €130K becomes an unsecured loan which I make a contribution towards. By the end of the 5-7 years some or all of the negative equity is erased leaving a more affordable mortgage.
New Beginnings believe this will come into law.
The PIA is harder to acheive according to New Beginnings.
On a purely Financial basis which option do you think I should ask New Beginnings to fight for given that the DSA is more likely to be acheived than the PSI ??
Which option would I better off in the future ??
Any feedback would be greatly appreciated as Im really struggling with this decision.
Regards
Seamie
I purchased a two bed appt in June 2008 where my current mortgage outstanding is €260K but the value of the appt is only €130K. Im making reduced mortgage payments of €800 a month with the full repayment at €1,200 so Im getting into arrears of €400 a month. My current arrears amount is €3K.
Im unable to make full repayments because of salary cuts over the years.
I registered with New Beginnings and they gave me two viable options that they would fight for me.
These options are not strictly in law as of yet but New Beginnings assured me that they were in the pipeline to come into law.
1.
DSA (Debt Settlement Arrangement) where in simple terms I would lose my home. The Bank would sell the appt and the negative equity of €130K wouild become an unsecured loan which I would part pay over a period of 5-7 years .
So for instance typical payment would range from 15k-35k based on what they believed I could afford. At the end of the 5-7 years I lose my home but I am debt free. This is similar to the case of the Nurse who won her case against BOI. New Beginnings fought against the banks in this scenario.
New Beginnings said that the DSA would be the easier option to acheive.
Or
2.
PIA (Personal Insolvency Arrangement) where I keep my home. So I pay interest only on my mortgage for a period of 5-7 years and some or all of the negative equity of €130K becomes an unsecured loan which I make a contribution towards. By the end of the 5-7 years some or all of the negative equity is erased leaving a more affordable mortgage.
New Beginnings believe this will come into law.
The PIA is harder to acheive according to New Beginnings.
On a purely Financial basis which option do you think I should ask New Beginnings to fight for given that the DSA is more likely to be acheived than the PSI ??
Which option would I better off in the future ??
Any feedback would be greatly appreciated as Im really struggling with this decision.
Regards
Seamie