Missing Mortgage Repayments

L

Liamos

Registered User
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Hi,
Looking for some advice. My situation is that I have a €400k mortgage with EBS. The repayments are €1800 per month of which I pay €1000 and my wife pays the balance. I have other outgoings of about €1000 per month. My monthly take home is €2200. As you can see things are very tight.
My problem is that I have missed my last 3 repayments (ie €5400). I know I can meet my future monthly repayments, however I don't know what to do about the arrears. At what stage is my home at risk? Will the EBS insist that I clear my arrears in a lump sum, or will they accept it gradually?

Grateful for any advice.
 
The most urgent thing is to make contact with the lender immediately to explain/discuss the situation. It is unlikely that your home will be at risk at this stage as long as you don't continue missing payments. I'm sure that the lender will accommodate you within reason (e.g. by adjusting the repayments and/or extending the term) if it looks like you will have the capacity to meet the morgage repayments longer term. It's not in the lender's interest to repossess without good reason and they will only do this as a last resort. Don't ignore the problem though. Contact the lender today.

By the way - when did you start the mortgage, how much was it originally and how much is your house worth at the moment? What are the details of the mortgage (rate, term etc.)? Judging by the details posted and using Karl Jeacle's mortgage calculator I suspect that you have a €400K loan at [broken link removed] over 30 years. Is that about right?

One a more general note you should check out the debt/budgeting resources in the Banking, Borrowing, Budgeting and Credit Cards to see what you can do about sorting out your finances by making sure that you live within your means and meet your necessary outgoings including loan repayments.
 
your lender may allow you a payment holiday after a period of paying in full, sometimes 3 or 4 years. Read your original mortgage pack pronto. Ask for a retroactive 3 month payment holiday and see what happens . You are supposed to agree in advance but they may agree now.

Thats a big mortgage for someone where the main income is around €40k a year from what I make out ..unless your wife earns more . It would be best to capitalise the arrears.

Ring them NOW and say you will ring again tomorrow , that will stop any 'procedures' for 24 hours while you read the pack.

Arrange a meeting in a branch to show what happened and make sure both are there and supporting documents are there too
, saturdays are good for EBS. if you can explain a one off with supporting documents to a manager or senior staffer (not a yellowpacker) then you should be OK. Its up to you to approach them though. If they chase you its a totally different ball game.

Do not hide , thats a bad idea right now when you could clear this up by the weekend with no credit record impairment.
 
Thanks. Our house cost €450k, but would be worth around €550k today.

My mortgage began in April 2004 and is over 30 years. Would I still qualify for this 'holiday period'?
 
The only way to find out about the "payment holiday period" is to ask. When are you going in to the EBS to talk to them about this matter? The fact that you have paid off c. 10% of the loan and own c. 30% of the equity in your home is significant as is the fact that you have gone two years before getting into repayment difficulties. Don't be afraid to point these facts out when talking to EBS. But do talk to them ASAP!
 
Ring them now and ask them to note on your file that no more payments WILL be missed . Save the complex 'explanation' stuff for senior branch staff not junior call centre people .

How many letters have they sent ?, if none you may well be in luck so move fast . If one per missed payment still OK I would think .

You must tell them somethinng and today
 
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