Response to solicitors letter advice

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kkelly77

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I have recently received a letter from AB Wolfe, acting on behalf of EBS, in relation to mortgage in arrears. Basically the letter states I need to pay all monies owed to EBS, including arrears and interest, within 14 days or they will take the house and put it up for sale.

I recently started back in contracted employment a couple of weeks ago after a significant amount of time being unemployed. I have also found a tenant for my house last week. My plan was to pay what I could towards the mortgage. However, I found out last week that, due to a change in the company's requirements that I am working for, I will only be contracted for another month or so. This means I'll be unemployed again unless another position comes up. This is highly unlikely, due to my experience in job hunting.

So with all this in mind, how should I respond to this letter? Should I contact EBS or their nominated solicitor? If they are looking for all of the mortgage within 14 days, would they even consider accepting the monthly rent I am now getting for the house (the rent does not cover full mortgage monthly repayments BTW)? Thanks for the advice.
 
Income details
Was made redundant from a full time permanent well paying job in 2009. Since then and now I have spent the majority of the time looking for work with only a few short term contract positions in the meantime.

Started back working a couple of weeks ago on an ongoing contract basis, that was potentially meant to be long term. Pre tax salary of €26k. However, as mentioned in previous post, I have been informed that because of a change in the business, I only have about another months work left. Chances are I will be back on JSA.

Personal circumstances so we can calculate your reasonable living expenses
With the start of my new job, I recently started renting an apt with partner. €975/month
Partner earns €370 a week after tax
No children
Have a car worth €700
House with mortgage is being rented for €800/month as of this month. Estate Agent managing the rental with a fee of 10% + VAT

Home loan
Lender: EBS
Amount outstanding: €225,000
Value of home: €97,000
Interest rate: 4.3% variable
Monthly repayment: €1180
Amount in arrears: €16,396

Spent a lot of time on interest only (approx 18 months). No other options given by lender. Bank were informed of my situation before difficulty with mortgage began. Bank sought SFS which I haven't submitted yet as I was engaging with New Beginnings and procrastination on my part (dealing with a major health issue during that period which are ongoing).

Credit Union
Amount of shares: €700
Amount of loan outstanding: €13000
Monthly repayment: €180 (repayments negotiated to this amount)
Term left: At that repayment rate, approx 6 yrs.

Other savings and investments
None

How important is retaining the family home to you?
I don't care about keeping the family home.

Any other relevant information
I have a recently been diagnosed with a life long condition that could potentially keep me from working but hasn't had a lasting long term effect on my ability to work yet.

What is your preferred realistic outcome?
I will never be in a position to repay the mortgage IMO. Considering bankruptcy.
 
kkelly77 said:
Personal circumstances so we can calculate your reasonable living expenses
With the start of my new job, I recently started renting an apt with partner. €975/month
Partner earns €370 a week after tax
No children
Have a car worth €700
House with mortgage is being rented for €800/month as of this month. Estate Agent managing the rental with a fee of 10% + VAT


.
Click to expand...

Why do you not live in the home rather than renting an apartment? What advice has New Beginnings given you. Do you have to pay them as well for advice?
 
Bronte said:
Why do you not live in the home rather than renting an apartment? What advice has New Beginnings given you. Do you have to pay them as well for advice?
Click to expand...

The house was purchased by me so the mortgage is solely my responsibility, not my partners. We are both working in Dublin (well, not me for much longer) so the cost and time of commuting is reduced as the house is in Kildare. Also, she is very close to her family and would not want to live so far from them.

New Beginnings basically said to follow the MARP process and explained what would happen if the process wasn't followed. They charged €150 IIRC for an 'initial meeting' and if you want their full services for dealing with lender(s), it's €450. Essentially they seem to be a intermediary service but know how to deal with creditors.

My query still stands though in relation how to respond to the solicitors letter I received.
 
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