Mortgage Debt Collectors

bronaghc

HI
I am currently being in arrears of about 5k with mortgage and a debt collector has started coming to the property, 3 times last month. I dont live there so my tenant is being harrassed. I am paying approx 70% of the mortgage each month as this is all I can afford. The IBRC have passed my debt onto this White Horse debt management agency. Does anyone know what they can do/the best way to handle this?
thanks

cookie1977

Debt collectors have no real standing in Ireland. They'd have to go to court to get a judgement against you. It is illegal for them to harass you too:
http://www.citizensinformation.ie/en/money_and_tax/personal_finance/loans_and_credit/moneylending_in_ireland.html
http://www.irishstatutebook.ie/1997/en/act/pub/0026/sec0011.html#zza26y1997s11

Go back to IBRC and have a talk with them about your situation and try to come to some agreement. Look at speaking with FLAC or New Beginnings although both are extremely busy.

Have you been in communication with IBRC about your debt?

davo10

Op did your tenent give them your current address?, if not, then they are calling to recover a debt owed at the address on record for you, this is not harassment, if you want it to stop, contact your lender, give them YOUR address and discuss repayments.

bronaghc

Thanks Cookie, no I havent been in regular contact with IBRC, they were Anglo the last time we spoke and they said they'd send my a form to fill out about reducing payments but they never did, so I just paid what I had. Ive just emailed them now asking if this White Horse is now in control of my debt and therefore have legal standing

cookie1977

bronaghc wrote: »

Thanks Cookie, no I havent been in regular contact with IBRC, they were Anglo the last time we spoke and they said they'd send my a form to fill out about reducing payments but they never did, so I just paid what I had. Ive just emailed them now asking if this White Horse is now in control of my debt and therefore have legal standing

They are not in control of your debt. You can negotiate with IBRC over the repayment of the debt and maybe negotiate future payments. You do need to speak with your bank and explain the whole situation to them. Are you renting now or is it a second property you own?

bronaghc

I am renting a place a room in a houseshare as I cant afford to live in my own place

Gurgle

bronaghc wrote:

arrears of about 5k ... I dont live there ... I am paying approx 70% of the mortgage each month ... I havent been in regular contact with IBRC ... I just paid what I had

Just be aware that if you don't reach and stick to an arrangement with your lender you will eventually end up in court and the question of tax on rental income will be asked.

If you have a relatively short time left on the mortgage, they will likely be amenable to rearranging the outstanding amount over a longer term with lower payments.

I'm guessing you have a residential mortgage, not a buy-to-let loan. You may be getting tax relief on your mortgage interest that you're not entitled to.

bronaghc

I just spoke with IBRC, my options are

1) fill out income/exp form and have payments reset accordingly with the arrears added onto terms of mortgage(do I admit to renting?)
2)make full payments for 6mths and have my arrears cleared

?

SteM

bronaghc wrote: »

I just spoke with IBRC, my options are

1) fill out income/exp form and have payments reset accordingly with the arrears added onto terms of mortgage(do I admit to renting?)
2)make full payments for 6mths and have my arrears cleared

Admit to everything. Remember that renting your home out might be income but you are renting a place which is expenditure. You never know, IBRC might be happy with the 70% that you are paying at the moment as long as they have an agreement from you proving that is all you can pay for now and committing to paying the the balance over a longer term or going back to paying the full amount if your circumstances change in the future. I'd say that they have people in a much worse position than yourself on their books.

I'd imagine that the only reason your account was handed over to a debt collector was because you started to pay 70% of your mortgage without contacting and having a full dialogue your provider first - this should be the first thing anyone what is in trouble should do. Contacting them and then leaving it if you don't hear back is no use.

If you can't make the full payment at the moment what makes them think you can pay it for the next 6 months - filling out this form will prove to them that you won't be able to afford it over the next 6 months (if you truly can't of course).

Gurgle wrote: »

You may be getting tax relief on your mortgage interest that you're not entitled to.

This is important - be sure that you're not claiming or receiving interest relief you're not entitled to because the Revenue could come after you for it and you could be hit with a big bill in the future.

Good luck.

cookie1977

bronaghc wrote: »

I just spoke with IBRC, my options are

1) fill out income/exp form and have payments reset accordingly with the arrears added onto terms of mortgage(do I admit to renting?)
2)make full payments for 6mths and have my arrears cleared

?

You're in a tough situation I'm afraid. You should be honest but you may then be liable for taxes for rental income, you will also be liable for reduced tax relief at source on your mortgage (TRS), NPPR and PRTB charges. I dont know the reasons why you cant live in your home but I'd definitely go to speak with MABS and FLAC about your situation and be completely honest with them. Do this prior to returning the form to IBRC but dont leave this too long. Contact MABS and FLAC today and try to arrange meetings explaining your situation.

Ignore as much as you can the debt collector. Have a read through here about mortgage arrears: http://www.keepingyourhome.ie/

Best of luck

dudara

Better suited to the Banking & Insurance & Pensions forum

dudara