usernameinuse
Registered User
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Is she prepared to voluntarily surrender, and walk away?The property is still in approx €180,000 negative equity and is unlikely to reach its 2007 value.
The property is still in approx €180,000 negative equity and is unlikely to reach its 2007 value.
Sounds as if she should go for a PIA.
She stupidly borrowed this amount of money. The bank stupidly lent her.
The PIA will fix that.
Brendan
I expect that this refers to wrongdoing on the part of the borrower, which is not, on the face of it, the case here.I am not sure that a PIA would fix that, as according to PIA guidelines : " The types of debt that are excluded and cannot be covered by a PIA are:
- Debts arising from a loan (or forbearance of a loan) obtained through fraud or similar wrongdoing"
Monbretia, there are plenty of nurses earning 60k plus, although the majority are not. It doesn't seem right to me that a nurse with more than ten years experience could be working full-time and have take-home pay less than that needed to cover the mortgage payments.
She asked her solicitor what the monthly repayments (interest and capital) would be but the solicitor did not know, she said to ask the bank. She asked the bank and was fobbed off, it would depend on future interest rates. She asked again and was told not to worry, they would be affordable, they got her figures, the bank were the experts, they had decades of experience, sure was property not going up in value all the time and wouldn't her wages increase during the ten years too and anyway the banker said (verbally) she could maybe extend the interest only period at the end of 10 years if she wanted to etc. She was told the most important thing was for her to get her foot on the ladder, it was a great investment etc.Usernameinuse - I presume she had a solicitor, did they bring anything in the loan offer to her attention regarding the repayments etc or the interest only term?
No she did not get a copy of the valuation report until many years later when she obtained it in her file, after paying €6.35. Should she have got a copy of the valuation report at the time? Anyway the €6.35 was the best money she says she ever spent, to see what went on.There were two loan reports in the file. The first one was for her correct income, and the bank did not approve the loan. The second loan report shows the bank, unknown to her at the time, inflated her income on paper by over €60,000 per year, presumably so she would then meet the lending criteria by the bank.I presume she also got a copy of the valuation report, did she query the discrepancies in it?
Yes. No mention of what monthly repayments (interest and capital) would be.Have you seen the actual loan offer?
I suppose back in the day bankers were expected to grow their loan books and perhaps sometimes got bonuses for reaching targets. I guess 99% of bankers behaved properly but as in some other professions and trades during the boom a few obviously did not.Not saying no one in a bank ever changed anything as obviously time has told us that did happen but I never came across it in the bank itself but did see stuff come in wrong.
It's odd it was never queried by anyone in the bank, what nurse was earning even 60k not to mind 60k plus whatever the proper salary was, a loan application goes through so many hands in head office it's hard to believe it could get through without query as obviously p60 and payslips did not match the employers form.
The borrower is well aware of the fraud and wrongdoing by the bank since she obtained the file.and as she seems to be unaware of the 'fraud' then...
Would that regulation have been there during the later years of the celtic tiger do you think? It definitely was not sent in this case, the borrower got a shock many years later when it mentioned the extra bedrooms, double glazing etc. Different type of house, but the house address was the same.Re valuation reports, they were normally sent out with the loan offer, not sure when that regulation came in but it was there for a good while before I left.
Yes.Does she actually have her original copy of her own loan offer?
Ever come across a valuation where for example major mistakes were made in factual matters eg describing it as a 5 bedroom with double glazed windows, when the property was and is a 3 bedroom with only one double glazed window, the rest are single glazed?I came across several properties also in the scenic south west that had what I considered ridiculously inflated valuations used for the mortgages
Thanks for all the information. She definitely never got a copy of the valuation or saw a copy, until it came many years later in the file obtained for the €6.35 under the data act. That despite the fact she paid for the valuation, as requested by the banker. The valuation was not mentioned as being sent or included in any correspondence at the time of the mortgage. She queried the bank relatively recently about the valuation and she was told the valuation was for bank use only. Maybe that is one reason she was never given a copy, the other reason being more obvious!Yes I would say that requirement to send out the valuation report with loan offer was there during celtic tiger, maybe not necessarily sent with loan offer but definitely given to client at some stage.
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