Will bank enforce judgement on home

In a public forum such as this I am unable to comment on specific settlement strategies with specific banks. Based on the limited information you have provided I set out below some factors that you should consider. (I have only provided some factors, as you have not provided much information. Given that the banks monitor this forum it is questionable whether you should provide further information on this forum.)

  • Generally banks take a much longer term perspective than vulture funds, who want cash now.
  • If BOI are your only creditor outside your primary mortgage, then there is no point doing a DSA or PIA, unless your primary mortgage was in arrears as at 1 January 2015, or ad been re-structured prior to that date. if your primary mortgage was in arrears as at 1 January 2015 you should seriously consider a PIA.
  • Did BOI charge you the correct rate of interest on the loan?
  • If you have surplus income over your Reasonable Living Expenses you face the risk of a an Instalment Order being made against you.
  • If house prices continue to increase then there will be more equity to attack.
  • Should one of you go bankrupt now?
  • Should you sell your house now before a JM is registered?
  • Who advised you to sell the investment property? Why didn't you keep it and subsidise any monthly shortfall from your other income? Was that advisor negligent?
  • A factor in your favour is that the judgment rate of interest is only 2%, which should encourage the bank to settle.
  • Judgment mortgages are difficult and costly to enforce, but you would have no protection against bankruptcy, which would see your house sold.

Jim Stafford
 
Can Boi force us to go bankrupt?
We have very little surplus income as we have shown them on incoming and outgoing statement of affairs.
I have offered a one off payment,it was refused.I could offer a small monthly payment instead but they have indicated the monthly payment they would require and this would be impossible for me.
House mortgage is on interest only for the last 5 years)arrangement expires next year)
Selling our house would never be on the cards unless forced.
I was advised to sell the property as it had been vacant for 3 years and couldn't get a tenant.I was paying interest only and bank were putting pressure on to sell also.
I looked for full and final settlement with bank when I got a sale but they would not agree but they agreed to release the deeds and deal with residual date after.
 
Under the previous CEO R Boucher the mantra was no deals, no write down,no debt forgiveness.BOI business and commercial banking were slightly more pro active and have done many deals including large write downs.The residential mortgage crowd in Mayor Street have dug their heels in and are now in a complete mess.Hopefully the new boss will be more pragmatic, otherwise they will able to to paper every branch in the country with largely worthless judgement mortgages.
 
Palerider said:
Peoples opinion vary, Creemegg states that there is a judgment on the property but you have not said so, right now there is no judgment registered, just the threat of one.
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I understood that there was a judgement mortgage in place already. This was my misreading of the initial post. Apologies to the OP and to Palerider.

However, a judgement mortgage may be the least bad outcome for you. The bank have said that they are going to put a judgement mortgage on your home, it might be worse if they said they were going to make you bankrupt, or going to seek an instalment order.

I am still not convinced that the OP should go anywhere near the bank. And I especially think that no offer of a lump sum should be made.
 
cremeegg said:
I understood that there was a judgement mortgage in place already. This was my misreading of the initial post. Apologies to the OP and to Palerider.

However, a judgement mortgage may be the least bad outcome for you. The bank have said that they are going to put a judgement mortgage on your home, it might be worse if they said they were going to make you bankrupt, or going to seek an instalment order.

I am still not convinced that the OP should go anywhere near the bank. And I especially think that no offer of a lump sum should be made.
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I would tend to agree with Cremeeggs strategy.Sometimes it's difficult to do nothing but it may be the best approach.However Jim Stafford is the expert on this subject.
 
I am bringing up thread I posted on over a year ago.Investment property sold that was in negative equity,substantial shortfall,I offered bank small settlement figure but it was refused,was told by bank they would be putting judgement on my home that has equity in it,that was well over a year ago and despite numerous requests from me to meet with someone to try and find a solution,possibly substantial write down and payment plan but they would not engage.There has been no contact at all in a year except statement arriving quarterly.I really would like to get some closure on this.Any advice would be greatly appreciated.
 
Hi Joan

As Jim suggests, you should see a Personal Insolvency Practitioner to get specific advice.

You might not be able to get closure on it. While it would be nice to settle it for €10k , I doubt BoI would be interested when they know you have assets.

I presume that they have not got a judgement yet?

Either see a PIP or do nothing.

Brendan
 
Thanks for that Brendan,I would have been prepared to do a payment plan in addition to the 10k but it would still have to involve a substantial write down.No judgement has been put on the house,it was only mentioned once to me over the phone but never followed up.I thought with personal insolvency you would have to have debts from more than one lender .I will certainly look into it.Thanks again.
 
Sit tight, be patient, try and put some money away monthly into a separate account, they may or may not progress this, patience is a virtue and you will need patience, believe me pressing forward now is the wrong move.
 
Thanks a mill for the advice Palerider,I think that’s what I will have to do and just wait an see what happens.Ideally closure would be preferable but bank just won’t engage.
 
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