Unsustainable Mortgage Communication
OK - further to my last post we have now received communication from the lender as follows (Brendan/Mods please feel free to delete anything you may feel is inappropriate):::
Dear xxxxxxxxxxx
Further to your request for an alternative repayment arrangement on your account we are writing to advise you that we are not in a position to offer you an alternative repayment arrangement as your mortgage is unsustainable.
In assessing your case we used the information you provided in your Standard Financial Statement together with any accompanying documentation. Based on your financial circumstances we do not believe you will be able to return to full contractual repayments in the foreseeable future. However, we are committed to working with you and there a number of options available to you in your circumstances and we would ask you to consider them.
These options include:
Trading/Downsizing
By downsizing you will reduce your mortgage, resulting in more affordable monthly repayments. This will involve selling your property to purchase another at a lower cost.
Voluntary Sale
This option allows you the opportunity to voluntarily sell your property. The proceeds of the sale (less reasonable sale costs) are credited to your mortgage account. You will be liable for any outstanding balance after the sale has completed. However, we will work with you to agree an appropriate arrangement in respect of your outstanding balance to enable you to plan for the future. This may include a full and final settlement in respect of this balance.
Voluntary Surrender
By voluntarily surrendering your property to us we will take it into possession with a view to selling it. You will be liable for any outstanding balance including the selling costs after the sale has completed. However, we will work with you to agree an appropriate arrangement in respect of your outstanding balance to enable you to plan for the future. This may include a full and final settlement in respect of this balance.
Mortgage to Rent
This means that the property is sold to an Approved Housing Authority (AHA) and you will become a tenant paying an agreed rent to the AHA, however you will continue to reside in the property.
For any of the options outlined above:
The associated approximate costs which may apply to the options above include:
A valuation fee: €150.00
Estate Agent selling costs: 2% of the purchase/sale price
Legal purchasing / selling costs: 2% of the purchase/sale price
In relation to Mortgage to Rent, Trade Down and Voluntary Sale options, we will contribute to these costs, once the particular option has been agreed with you.
Please be advised that you are now outside the protection of the Mortgage Arrears Resolution Process (MARP) and therefore you need to be aware of the following:
1. We reserve the right to commence legal proceedings three months from the date of this letter or eight months from the date the arrears arose, whichever date is the later. In the event that we commence legal proceedings to repossess your property, you will be responsible for the legal costs of such proceedings, estimated at €4,500 and costs associated with the disposal of the property. However, this amount could be higher or lower depending on the legal action taken. You will also remain liable for any outstanding debt, including any accrued interest, charges, legal, selling and other related costs.
2. Under the Personal Insolvency act 2012, you have the right to consult with a Personal Insolvency Practitioner. For more information please refer to their website at
www.isi.gov.ie
3. Your account may be reported to the Irish Credit Bureau or any other credit reference agency or register and may appear on your credit report. The impact of this will affect your ability to borrow future funds.
We recommend you seek independent legal and/or financial advice in relation to the contents of this letter and confirm that a copy of your most recent Standard Financial Statement is available on request.
Should your circumstances improve, or if you have any questions or require clarification in the interim please contact us immediately.
While we appreciate this may not have been the decision you were hoping for, we are committed to helping you reach a solution and would ask you to contact us within 14 days from the date of this letter on 1890 252 008 to agree the most suitable option for you.
Yours sincerely
The Bank
Anybody have any views at all?? Personally I don't like the options of Voluntary Surrender or Voluntary Sale.
KitKat