Hand back Keys to Bank - Need advice

Shindig said:
There is no free legal aid board in England.
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There is no free legal aid board in Ireland either. The Legal Aid Board here in Ireland requires some form of payment no matter how nominal for services provided.
 
When I enquired about this last year I needed to have an income of £290stg per week or less to qualify. But between maintenance, SWA, child benefit and childcare allowance I did not qualify then and I would not qualify now.
 
Bronte said:
you are wasting you time going after your ex, it will only cost you time, money and frustration, a man that does not want to be found will not be.
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I agree with this.

Your ex-husband has extricated himself from this and quite frankly, you should too. I cannot see how you can possibly make any payments on your mortgage.

Have you any assets at all? Car, pension, etc? If you don't have anything, then I wouldn't be too bothered about the bank making a significant loss when they sell the property. After all, you can't draw blood from a stone.

Another possibility for you could be to get in touch with one of the newspapers? It's probably fighting dirty, but maybe the bank would be more willing for fore go a bad loan rather than have their name dragged through the mud.

I hope things work out for you. If you have a chance, it would be great if you could update us on the bankruptcy/repossession proceedings. We're in uncharted territory here and maybe your experiences can be of benefit to any other poor soul who finds themselves in your situation.
 
"Another possibility for you could be to get in touch with one of the newspapers? It's probably fighting dirty, but maybe the bank would be more willing for fore go a bad loan rather than have their name dragged through the mud."

"If they give up on the debt make sure that you never acquire any assets (you need to know the time limits) or marry etc. I know that the banks in the UK waiting until the six years was nearly up (I think the statute of limitations was that long) and then they went after the people who had now gotton back on their feet and some had even bought property. "

I don't understand this logic. From either poster. This woman patently cannot afford to stay in this house. Banks have a responsibility to their shareholders. Most banks are fairly decent but this form of advice just muddies the whole thing up as if in some way the banks were wrong to want to protect their position?

And can anyone tell me why Banks should write off debt? They have zero obligation to do so. And why should people not be responsible for their debt?

mf
 
Raskolnikov, I would have no problems coming back on here to update how I got on and hopefully provide some useful information to more people in my position. But I have to say in fairness to the bank in question I could not have been more lucky so far with them. They have been great and I do understand that they have to get their money back in some way but I would not and could not go to the newspapers on this. I do not see where that would get me and also I would probably come out at the other end looking like a fool.

I came onto this website to get useful information to help my 3 kids and myself and what you have suggested is not one bit helpful. I am pretty sure that there are lots more people in the same situation as me out there checking out this thread wondering if they should go to the papers. I have an undertaking with the bank and I am not trying to run away from it. I want it to stop and I need good solid advice. My ex left us with a big mess and I am left to pick up the pieces and it will take me a lot of years to clear this up.

Rgds

Shindig
 
mf1 said:
And can anyone tell me why Banks should write off debt?
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Maybe because (like RTE & Bev Flynn) they realise they have no practical chance of recovering the money?

What happens when you sell a mortgaged house in a negative equity position? Where this is equity, the mortgage gets cleared and the owner pockets whatever is left over (ignoring CGT for the moment). In this kind of scenario, does the bank have a veto over the sale? Would they block the sale?
 
The bank may have been fairly decent until now and I don't doubt they were/are but at the end of the day they will be coming after their money as they are entitled to do and family home or not the OP will be evicted. That is the stark reality, banks are not charity. I am giving the OP advice not the bank's shareholders and I never see a bank on AAM with problems. Banks are well able to look after themselves. In Ireland when they run into trouble the goverment helps them out (AIB) but I don't see the government helping out people in debt. And in turn when goverment members are in trouble banks help them out (Haughey & FitzGerald) In fact a lot of people are in a right mess now because of banks lending to people who cannot afford it. Sorry if this is a rant, but I have a problem with banks. In an ideal world the OP would be able to sort this out, which she patently is trying to do, but she is running out of options. If the bank takes your house and you have nothing they will probably go after your husband, if he pays of the debt then you will have no further liabilities but you will have a problem with your credit rating. By the way, in case anyone thinks otherwise I agree with the other advice but one needs all options in order to make a decision.
 
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"In this kind of scenario, does the bank have a veto over the sale? Would they block the sale?"

The actual process of selling a property over which there is a mortgage is that the lender ( Bank) will only release the Deeds to a Solicitor - we take them up from the Bank on what is called "accountable trust receipt". We can only release the Deeds to someone else ( i.e. the purchaser/purchasers solicitor) if we have sufficient funds to discharge the mortgage - otherwise we are responsible for the difference.

So, yes, banks do have a veto - a borrower in negative equity would have to fund the difference between sale price and mortgage loan somehow or, get the agreement of the bank to accept a lower amount or some other loan repayment scheme to allow a sale to complete.

mf
 
mf1: Yes the banks have an obligation to the shareholders, but there's little point in keeping a non-performing loan on their books. Banks all over the world have already written off billions of dollars of mortgages, I don't see why Irish banks would be any different.
Shindig said:
I came onto this website to get useful information to help my 3 kids and myself and what you have suggested is not one bit helpful. I am pretty sure that there are lots more people in the same situation as me out there checking out this thread wondering if they should go to the papers. I have an undertaking with the bank and I am not trying to run away from it. I want it to stop and I need good solid advice. My ex left us with a big mess and I am left to pick up the pieces and it will take me a lot of years to clear this up.
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I'm sorry if you found my comments unhelpful. I was merely trying to make a suggestion as to how you would get out of your current predicament. I wouldn't have imagined that after a bank had repossessed a home; that they would pursue an unemployed, single mother of three children too vigorously.

What I don't understand is why you're so willing to take the burden of this alone. Just because your ex-husband has walked away from this, his name is still on the mortgage. Regardless of whether he is in Tipperary or Timbuktu, he is liable for half the mortgage. Even if you have to cover half the negative equity, I can't see how you could possibly pay it off while on welfare. The only option for you is to advise the bank to issue repossession hearings. Then hope that the bank would be willing to write off the negative equity you still owe.

I'm actually surprised the bank haven't started this process already. In the States, banks usually only wait for three months before they take back a property.
 
mf1 said:
So, yes, banks do have a veto - a borrower in negative equity would have to fund the difference between sale price and mortgage loan somehow or, get the agreement of the bank to accept a lower amount or some other loan repayment scheme to allow a sale to complete.
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Thanks for the clarification. Have you any idea on what is happening in practice with negative equity sales here in Ireland?
 
Complainer said:
Thanks for the clarification. Have you any idea on what is happening in practice with negative equity sales here in Ireland?
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No, I've heard nothing yet but then my practice has older client profile- as in, I don't have a lot of younger clients - who I think are the ones most likely to get hit.

I would speculate though that Banks might agree to release a mortgage on a property to enable a sale to close and get some funds but I suspect they will look for some other form of security - possibly a guarantee from another person who has property. Or a charge on their property.

Scary thought.

mf
 
Shindig, it is time to file a statement of means to the bank. This is a statement of your income and outgoings which, no doubt, will reveal an inability to repay a mortgage of this magnitude.
Try and use every means possible to source alternative accommodation through your local authority — TDs, councillors, etc — as your present location can only be but a temporary one.
In the event of the bank adopting a legal route to recover the deficit of the mortgage vs the sale price of the house, they stand no chance in court if you have a statement of means submitted and are willing to stand by this.
No court would make either an instalment order or, worse still, a committal order against you in your circumstances.
It is time to leave this house and this life behind you once and for all
 
Last April the bank asked for one which I sent onto then. I did it up on an spreadsheet for 1 month. At that time I was receiving more maintenance from ex. I never heard anything back from the bank on this - TBH I completely forgot about it.

I have contacted a local consellor and MABS about getting on the housing list so hopefully I will get something sorted on that soon.

It is time to leave this house and this life behind you once and for all
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How do I go about doing that???? What do I need to do??.
 
It's good that you are on a housing list and hopefully you will qualify for something that you can afford. With regard to your present circumstances, it is obvious that you cannot afford the repayment of the current mortgage and will have to consider the future as opposed to the past. might seem simplistic but it is what you have to do. The bank cannot squeeze you beyond the legal means albeit they seem to have been quite fair to you in the circumstances. Still, they know that you cannot dig yourself out of this in the foreseeable future and will leave the next move up to you. The courts won't allow you go to jail over the debt, nor will you be declared bankrupt. It may not be a 'handing back the keys' situation but it will be very similar. The important thing is for you to find yourself alternative accommodation as soon as possible. Citizens Advice Bureau should be able to advise regarding legal aid by which to dispose of your house.
 
You are not going to be able to get social housing until you offload the house.

You will have to sell it, and lower the price until you do. You will still owe the bank lots of money, but when they take you to court a judge can only order what you can afford to pay (MABS can support you in Court). The problem is the loan will never be forgiven, so when your circumstances improve, children older, well paid job, maybe new partner - you will still owe the money.

Your only options really are
a) sell now, get the monkey off your back, and deal with the debt when your circumstances are better.
b) carry on struggling.

Bronte said:
T
In Ireland when they run into trouble the goverment helps them out (AIB) but I don't see the government helping out people in debt.
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I have to challenge you on that. Dept Social Community and Family Affairs fund a MABS office in practically every town in Ireland.
 
As regards getting on your local authority housing list, if you just go in there, fill out the form and hand it in, the minute they see that you own a house, your application will be refused.

I'd advise you to go to your local office, outline your situation and see what can be done. I used to work for one of the Dublin local authorities and in exceptional circumstances, home owners would be accepted on the list provided the house was sold and a financial contribution was made to the council. I don't know if this would still be insisted upon now that times have changed and people are facing negative equity.

It's no harm to talk to them anyway and see what they say. Good luck.
 
mf1 said:
No, I've heard nothing yet but then my practice has older client profile- as in, I don't have a lot of younger clients - who I think are the ones most likely to get hit.

I would speculate though that Banks might agree to release a mortgage on a property to enable a sale to close and get some funds but I suspect they will look for some other form of security - possibly a guarantee from another person who has property. Or a charge on their property.

Scary thought.

mf
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And if none of these were available, the bank would simply just go to court and repossess?
 
I got an email from my solicitor here and he has been speaking to the bank so I am to call him tomorrow morning to get an update. I'll let yee know whats happening or going to happen!!!!
 
bond-007 said:
And if none of these were available, the bank would simply just go to court and repossess?
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Mostly, this is the last resort. I suspect it happens when:

(a) There is zero communication from the borrower.
or
(b) Even if they are in touch, that it is beyond doubt that the borrowers will not face up to reality.

These are uncharted waters - but its where we're heading. My advice would always be to face up to the problem and get proper advice. Once you're clear about the situation, assess it and decide how to deal with it. Definitely consider selling - if that is possible. Negotiate with the lender about any possible shortfall. If it is not possible to sell, consider if there is any possibility of extending the loan or finding additional income. Repossession should be the very last resort.

mf
 
Shindig,
So sorry to hear of your plight and your ex should be hanging his head in shame..anyway, my sister was in a similar situation recently. Her husband walked out over a year ago and stopped paying the mortgage and although she got a court ordered maintenance payment for the two kids, he left his job and pays 10e per week from his dole (he's a plumber though and has a mountain of work on the black market.)
From the start, she contacted the bank - to cut a very long story short, she also contacted her Community Welfare Officer and once her LPA was sorted, (which took about 3 months) they also paid all her mortgage arrears (over 7000) to the bank AND she now gets 700pm off her 1460 mortgage. She had to get a job herself to cover the extra but is managing (just about) now.
So go to your CWO - I know your arrears are alot more than my sisters, but they WILL help you. Best of luck.
 
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