Home surrender

mark313 · 29-01-2013 3:46pm #1

would anybody know how long on average if you havent paid your mortgage would it take for the bank to ask you to voluntarily surrender your home? does anyone have any experience of this process? thanks

D3PO · 29-01-2013 4:02pm

I have no idea why you looking to strategically default. You wont be helped by the new personal insolvency bill and you will still have to replay the difference so its pointless.

Im basing this on your two threads that neither seem to indicate your in any kind of financial difficulty but a case of WONT pay rather than CANT pay

mark313 · 29-01-2013 4:07pm

im not doing the thing of wont pay... quiet simply i cant pay. if i could pay id prefere to keep my home. i only owe one, its not as if im trying to off load a house as i have others. my wage will not strech to cover a family and a mortgage. im asking these questions as im trying to get a better understanding of what im getting into.

D3PO · 29-01-2013 4:11pm

mark313 wrote: »

im not doing the thing of wont pay... quiet simply i cant pay. if i could pay id prefere to keep my home. i only owe one, its not as if im trying to off load a house as i have others. my wage will not strech to cover a family and a mortgage. im asking these questions as im trying to get a better understanding of what im getting into.

In that case you need to ring your bank and you need to hammer out a deal. Push hard there is no benefit in them not working out a mutually beneficial solution.

I assume you have already looked at extending the term ?

going interest only ?

taking a payment holiday ?

renting out the house and renting somewhere cheaper (need to do the maths on if this is beneficial)

Play hardball with the bank dont let them push you around.

If after all this and you cannot pay and the bank is refusing to allow you sell and take on the debt separately you need to start speaking to all the agencies you can do sort something out New Beginnings, MABS etc and hounding your local TD cant help either

mark313 · 29-01-2013 4:14pm

i bought this when i was 19. its a 40 yr mortgage. so extending it is out the window. i have tried the iother options so im waiting to see what the bank do. thanks regards mark

cookie1977 · 29-01-2013 4:15pm

mark313 wrote: »

would anybody know how long on average if you havent paid your mortgage would it take for the bank to ask you to voluntarily surrender your home? does anyone have any experience of this process? thanks

Have you gone through the MARP process where at best you can have a full halt to your capital payments and you may only have to pay 66% of your interest repayments for up to 5 years until you're back on your feet. As D3PO says you have to speak with your bank.

Have a look at:

www.keepingyourhome.ie

mark313 · 29-01-2013 4:18pm

yaeh in the marp at the moment but they will only offer it for one year. basically im just trying now to prepare for the worst and see what does happen during a surrrendering process. thanks for all the help everyone

cookie1977 · 29-01-2013 4:20pm

You can appeal any recommendation the bank makes, initially to the bank but then to the financial services ombudsman.
http://www.keepingyourhome.ie/mortgage_arrears_resolution.html.en

Just because they say one thing does not mean it's right and fair. If I were you (and I'm not) I would do everything else within my power first before I go down the road of surrendering my home.

riclad · 29-01-2013 4:41pm

i know someone had btl house,she stopped paying mortgage,Put the house up for sale,it took 2 years to sell,it for 80k, she owed 100k.
you can get advice from mabs, and threshold,She had no tenant ,so she stopped paying it
see www.threshold.ie,
There was a woman on radio 3 weeks ago, mortgage400k,house worth 200k,
she has reduced income, pays x amount per month, ie what she can afford.
I,D Say its way less than the full mortgage.
I don,t think theres a way of simply giving house back,unless you declare
bankruptcy ,bank would go to court ,repossess house,
and you,d still owe X Amount on the mortgage,
Say house is sold for 100k, loan minus 100k approx.
First ten years on average ,is mostly interest payments, your mortgage statement will show exactly how much you owe,ie capital amount.

D3PO · 29-01-2013 4:44pm

riclad wrote: »

i know someone had btl house,she stopped paying mortgage,Put the house up for sale,it took 2 years to sell,it for 80k, she owed 100k.
you can get advice from mabs, and threshold,She had no tenant ,so she stopped paying it
see www.threshold.ie,
There was a woman on radio 3 weeks ago, mortgage400k,house worth 200k,
she has reduced income, pays x amount per month, ie what she can afford.
I,D Say its way less than the full mortgage.
I don,t think theres a way of simply giving house back,unless you declare
bankruptcy ,bank would go to court ,repossess house,
and you,d still owe X Amount on the mortgage,
Say house is sold for 100k, loan minus 100k approx.
First ten years on average ,is mostly interest payments, your mortgage statement will show exactly how much you owe,ie capital amount.

your post is totally irrelevant BTL and PPR cannot be compared.

Also how many times do you have to be told to properly structure your posts ? (Including by mods) its beyond annoying.

StillWaters · 29-01-2013 4:58pm

D3PO wrote: »

I have no idea why you looking to strategically default. You wont be helped by the new personal insolvency bill and you will still have to replay the difference so its pointless.

Curious as to why you say the new personal insolvency legislation won't apply here?

D3PO · 29-01-2013 5:02pm

StillWaters wrote: »

Curious as to why you say the new personal insolvency legislation won't apply here?

Long story short the process involves looking at your overall finances. If your strategically defaulting you wont make it through the process as it will be seen that you can infact afford to pay and just have not been in the hope of getting a deal.

Either way its not relevant here OP have clarified that they are struggling due to a pay cut

riclad · 29-01-2013 5:11pm

OK, The point i,m making is even if you stopped paying,left the house , or put the house up for sale ,IT could be a year or more before there,s a legal resolution to this situation .And its, likely you would still
owe the mortgage to the bank .Threshold have an office in stoneybatter,
you can go in there ,or ring them to get advice.Most houses are in negative equity, you would need banks, formal permission to sell the house.

cookie1977 · 29-01-2013 5:14pm

More on personal insolvency bill here:

http://www.keepingyourhome.ie/personal_insolvency_options.html.en

Just a short quote:

Running up debts

You must not deliberately stop paying (or underpay) your creditors while these procedures are being set up as this may cause your application to be ineligible.

Provision of information

You will have to complete a Prescribed Financial Statement, giving full and honest information about your financial circumstances. You will have to sign a Statutory Declaration to this effect. You must act in good faith and co-operate fully with the process.

You will have to give your written consent to the accessing of certain personal data held by banks and other financial institutions so that your financial situation can be verified. Government Departments and agencies will have the power to release certain information about you.

Senna · 29-01-2013 5:31pm

Do you want to keep the house?
If you do, and you cannot agree a repayment structure with the bank, keep making payments EVERY month, even if €50 is all you can afford this month.
It will stand you in good stead should the situation escalate.

cookie1977 · 29-01-2013 5:33pm

If you've a MARP agreement in place and due to changed circumstances you cannot keep up with the original deal then you need to appeal to the bank. That is the process which will help you most.

Kristopherus · 29-01-2013 5:56pm

Whats the make-up of your family? If you have a household of , say 5, including yourself, you should investigate the possibility of getting FIS. On no account should you give the house back to the bank. You will regret it for the rest of your life. And the bank will go after you for any balance due after they take their expenses from from the sale. You owe it to your family to do the best by them. Going down the road you are considering is not the best option.

D3PO · 29-01-2013 5:57pm

Kristopherus wrote: »

Whats the make-up of your family? If you have a household of , say 5, including yourself, you should investigate the possibility of getting FIS. On no account should you give the house back to the bank. You will regret it for the rest of your life. And the bank will go after you for any balance due after they take their expenses from from the sale. You owe it to your family to do the best by them. Going down the road you are considering is not the best option.

How can you get FIS while working ? Regadless hes on 40 grand plys Gross no way would he be eligible

Kristopherus · 29-01-2013 5:59pm

D3PO wrote: »

How can you get FIS while working ? Regadless hes on 40 grand plys Gross no way would he be eligible

Fis is for people that are working. Full details here:http://www.welfare.ie/en/Pages/Family-Income-Supplement.aspx

And it is Nett pay that is considered.

More info here:http://www.welfare.ie/en/Pages/3884_How-do-I-qualify.aspx

Home surrender

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