Under the recently updated legislation the fund would be obliged to accept the terms of a PIA provided it paid off the mortgage in full.My other fear is there's very little incentive for a Vulture fund to agree to a PIA in my current situation.
Brendan, thanks so much for the reply.Hi JD
First of all, no need to panic.
I presume it was a 20 year mortgage and the term is up.
Even if the Fund is minded to take legal action against you, it would take them years to get anywhere.
What is your net income?
How much can you afford to pay?
Interest only on €44k is very little.
For example, €44,000 @ 4% interest over 10 years wold be repayments of €450 per month. Can you afford that?
I would recommend you start paying as much as you can afford. If you can pay more than €450, then you should do so.
Abhaile should put a proposal on this basis to the fund. They would be mad not to accept it.
If they ever take legal action and the judge sees that you will have the mortgage cleared in time, they will not grant an order for possession.
Brendan
Brendan, thanks so much , My first ever postHi JD
First of all, no need to panic.
I presume it was a 20 year mortgage and the term is up.
Even if the Fund is minded to take legal action against you, it would take them years to get anywhere.
What is your net income?
How much can you afford to pay?
Interest only on €44k is very little.
For example, €44,000 @ 4% interest over 10 years wold be repayments of €450 per month. Can you afford that?
I would recommend you start paying as much as you can afford. If you can pay more than €450, then you should do so.
Abhaile should put a proposal on this basis to the fund. They would be mad not to accept it.
If they ever take legal action and the judge sees that you will have the mortgage cleared in time, they will not grant an order for possession.
Brendan
Honestly I think I would struggle @ €450 a month.
Morning Jim and thanks so much.Under the recently updated legislation the fund would be obliged to accept the terms of a PIA provided it paid off the mortgage in full.
Given the size of the debt I would suggest that you let MABS try and negotiate a settlement.
Jim Stafford
Thanks Brendan,What can you afford?
The interest on €44k @4% is about €150 a month.
If you pay more than this you are reducing the balance and eventually the mortgage will be paid off.
If you just pay €150 a month, you will always owe the money.
So pay more than €150 and it would be stupid of the lender to try to repossess.
Brendan
Thank you for the response, I've just updated an additional complication I've discovered this morning, a judgement mortgage by original mortgage provider, information I genuinely was not aware of. It doesn't overly change the bigger picture however.OP seems to have had some hard personal circumstances. Illness when self-employed can be very difficult financially in Ireland.
I don't know how the fund will look at it but I would think it should be possible to repay in full. Repaying €44k at 4% over 15 years is only €300 a month.
To me this is manageable on illness benefit or state pension in due course. Everyone has to pay something for shelter.
Thanks Brendan for not pre judging, I only discovered this seperate issue after joining AAM.Did they sell the personal debt to the Vulture Fund as well? I suspect not, if the fund did not mention it to you in their letter.
If not, the VF is only interested in getting the €44k.
If you pay that off over 15 years, you will still have the judgement mortgage, but lenders rarely try to seek an order based on a judgement mortgage.
so it will stay there until you die and your Executor sells the house.
Brendan
You should tell MABS.Obviously when I'm negotiating I'll disclose this
Hi there, they do but I was mistaken on my understanding of date of award, the judgement was awarded in March 2009, but registered as a judgement mortgage until 2011, I've had zero communication with the creditor on this (actually original home mortgage provider) since 2009 and enforcement never attempted. So I now appreciate this could potentially happen so need to accept this when speaking with Mabs, PIP. My question is, would this be considered as a part of any potential PIA? and if I had the choice (potentially) to clear all warehoused Mortgage debt (€14k) or address this judgement mortgage (approx for €11k) my actual mortgage balance to include everything is €44k. I guess my thinking is if I wasn't approved for a PIA, the most pressing concern may be enforcement of Judgement mortgage alot easier than a repossession process which is Threatened by VF who bought my mortgage 2 years ago, as Brendan advised I should not panic, I guess its deciding whether to clear all mortgage arrears before considering potential PIA, perhaps giving me a more manageable obligation for whatever term maybe proposed.Do judgement mortgages not have a 12 year time limit? Has the bank or anyone written to you, OP, about it in the last 12 years - you may have grounds to have it cancelled. MABS could advise you on this.
Excellent advice and thank you, yes, I've decided to absolutely give nothing away to VF and allow the experts advise accordingly, I was advise to send a standard letter seeking one definitive info etc after telephone consult with Mabs, I'm awaiting actual face to face very soon as there's a waiting list etc, I'll hold off on any direct contact with VF, thanks again, curious about what you mean re continuing payments above €150? if you don't mind me asking.I'd recommend against telling the VF that you have access to a lump sum. Ask for a full and final settlement figure if you want, just to see what might be possible.
I'd say your best bet is to continue with repayments, provided they're above €150 a month. There's very little the VF can do, other than waste everyone's time with letters and fruitless court proceedings.
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