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Mortgage problems

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  • 26-04-2011 9:41pm
    #1
    iPearly
    Registered Users Posts: 246 ✭✭


    Hi, I am writing here with hope of someone else maybe having a bit of advice...

    My husband lost his job in feb 2009 at the airport and nothing since then. We bought a house in June 2008 and borrowed 272,000 at 5.35 % over 27 years. ( Maximum term of the loan) We have a small child and somehow managed to pay with my earnings and savings till now. Fixed expires in June and current fixed is 8.79% or variable at 5.95%.

    Went to the bank today to tell them that we can't afford to pay any more ( permanent tsb) just to find out what kind of help do they offer. I'm still in shock. For interest only repayments for 6 months ( about 400 euro less than what we pay now 6x400=2400) they want to add euro 6700 to repay over the term of the loan.

    That or a default is the only options we have- as we're told.
    Is this the HELP I've been hearing on the radio and tv about????
    I hope someone else will give me some hope. Time is of the essence..

    kind regards


Comments

  • Options
    #2
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Well its something.

    Why not tell them what you want?


  • Options
    #3
    iPearly
    Registered Users Posts: 246 ✭✭iPearly


    ..other houses like our are on the market for e180,000 now.. But that doesn't matter.


    These are the only options they gave us. I suggested extending the loan term but they said NO


  • Options
    #4
    unclebill98
    Registered Users Posts: 3,816 ✭✭✭unclebill98


    Extending the period will but you past retirement age I guess.

    Firstly telling a bank you can pay anymore is not going to make the person you deal with wanna work harder to get what you want. Go to them with an amount you can afford to pay. Your not going to like what they have to say. Get a final decision from them on what they will allow.

    If your not happy make a formal complaint. Follow their complaints process and obtain there final response. Then take it to the ombudsman. They'll give you a letter and then go back and re apply for another deal to be done. Them letters tend to carry a bit more weight.

    Bottom line is you have to pay something. A reduction of 400 is not to passed lightly, yes there is a longer term pain but it's not the banks fault and they are a business.

    Banks have a this stage a very good set structure to dealing with customers in difficulty. They'll not offer the max they can without being pushed, but it not a free for all either.


  • Options
    #5
    Dubliner27
    Closed Accounts Posts: 1 ✭Dubliner27


    Hi,

    I am an american in Ireland and we dont understand why Irish are so so sacred of banks. Did you not heard about structured default on your mortgage. Banks are already in so much trouble in Ireland and they do not want any more bad loans on their books. Why not walk away from your mortgage...which in the US struggled homeowners doing almost everyday basis. I am renting(with 2 other frined) a 3 bedroom house in south side of Dublin for 1100 euro....why on earth you want to pay some redicules amount to a bank(which you have already bailed out with your tax money) and according to ECB interest rate will rise few times until end of this year just to live with all this headach?? What bank going to do, if you hand them the key? Will they take you jail...I doubt, if sean fitzpatrick still driving his Jaguer then I dont think they can. Rent a house with half the amount you are paying for your mortgage and live a decent stress free life as price of your house will take at least 15-20 years to go to a decent level with this amount national debt. About time bank need to realised..it is the mess they created not us!


  • Options
    #6
    creaghadoos
    Registered Users Posts: 274 ✭✭creaghadoos


    iPearly wrote: »
    Hi, I am writing here with hope of someone else maybe having a bit of advice...

    My husband lost his job in feb 2009 at the airport and nothing since then. We bought a house in June 2008 and borrowed 272,000 at 5.35 % over 27 years. ( Maximum term of the loan) We have a small child and somehow managed to pay with my earnings and savings till now. Fixed expires in June and current fixed is 8.79% or variable at 5.95%.

    Went to the bank today to tell them that we can't afford to pay any more ( permanent tsb) just to find out what kind of help do they offer. I'm still in shock. For interest only repayments for 6 months ( about 400 euro less than what we pay now 6x400=2400) they want to add euro 6700 to repay over the term of the loan.

    That or a default is the only options we have- as we're told.
    Is this the HELP I've been hearing on the radio and tv about????
    I hope someone else will give me some hope. Time is of the essence..

    kind regards


    the rise in the cost over the term of your loan is because you are effectively going into arrears by paying interest only.

    i phoned ptsb and asked them what proportion of my monthly payment is interest and what is capital. when they told me, i told them i would pay no less than the interest each month until my situation improved.

    pay what you can


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    #7
    Axe Rake
    Registered Users Posts: 240 ✭✭Axe Rake


    Dubliner27 wrote: »
    Did you not hear about structured default on your mortgage.

    Structured default is when a borrower defaults because the current value of their home is less than the balance owed. It is not due to financial hardship: the borrower has the capacity to meet the monthly obligation of the loan.

    This does not apply in this situation since the OP cannot afford the current repayments.


  • Options
    #8
    alie
    Registered Users Posts: 1,780 ✭✭✭alie


    Would you go to citizens advice and ask them to help:)


  • Options
    #9
    g_moriarty
    Closed Accounts Posts: 87 ✭✭g_moriarty


    Axe Rake wrote: »
    Structured default is when a borrower defaults because the current value of their home is less than the balance owed. It is not due to financial hardship: the borrower has the capacity to meet the monthly obligation of the loan.

    This does not apply in this situation since the OP cannot afford the current repayments.

    Er.. and more importantly, if not crucially, structured defaulting doesn't exist in Ireland. You would still be liable for the balance on the loan after sale of house.


  • Options
    #10
    phormium
    Registered Users Posts: 3,340 ✭✭✭phormium


    Citizens Info will tell you go to MABS so you may as well go straight there, it will take a while to get an appointment so ring tomorrow.


  • Options
    #11
    professore
    Closed Accounts Posts: 5,857 ✭✭✭professore


    Dubliner27 wrote: »
    Hi,

    I am an american in Ireland and we dont understand why Irish are so so sacred of banks. Did you not heard about structured default on your mortgage. Banks are already in so much trouble in Ireland and they do not want any more bad loans on their books. Why not walk away from your mortgage...which in the US struggled homeowners doing almost everyday basis. I am renting(with 2 other frined) a 3 bedroom house in south side of Dublin for 1100 euro....why on earth you want to pay some redicules amount to a bank(which you have already bailed out with your tax money) and according to ECB interest rate will rise few times until end of this year just to live with all this headach?? What bank going to do, if you hand them the key? Will they take you jail...I doubt, if sean fitzpatrick still driving his Jaguer then I dont think they can. Rent a house with half the amount you are paying for your mortgage and live a decent stress free life as price of your house will take at least 15-20 years to go to a decent level with this amount national debt. About time bank need to realised..it is the mess they created not us!

    In Ireland you still have to pay back the mortgage even if you hand back the keys - so you end up on the street still liable for the mortgage. This is different in the US where they can only take the house back. And yes they will jail you here as you are a small insignificant person not someone like Seanie who probably has lots of dirt on the politicians. Here you are above the law once you get to a certain level of wealth and/or influence.

    Sorry to hear about your problems OP. I would guess you are not the only one. Maybe people in your situation should get organised into a political movement?


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