About to miss first mortgage payment in 19 years

chisel1

About to miss first mortgage payment in 19 years. My friend (I do his books), is broke and has no work. Ive advised he close his business. He has no money to pay this months mortgage and credit card ( but will make the minimum payment on credit card).
Can someone advise how long it takes to get a negative listing on the ICB?

He is on a tracker and only has a few months to go before its finished. Is it possible to renegotiate a repayment plan with a Building Society so close to its end?

pilly

ICB shows the last 24 months payments on a mortgage so it depends really when someone looks for a credit report. If he only has a few months left is there absolutely no way he could struggle his way through it? Pity to ruin a good credit record for the sake of a few months.

listermint

If he is broke he should look for alternate work to close out the mortgage. Bar Work, Food Delivery, Anything really to get it over the line.

Avatar MIA

This is where the local credit union would be invaluable. They may be reluctant if no savings though.

pilly

Even sell a couple of things to make the payments maybe?

coylemj

Avatar MIA wrote: »

This is where the local credit union would be invaluable. They may be reluctant if no savings though.

Lending someone money to make payments on a loan is simply taking on another lender's problem and is not good lending practice.

Avatar MIA

coylemj wrote: »

Lending someone money to make payments on a loan is simply taking on another lender's problem and is not good lending practice.

We're looking at this from the OP's POV.

If he's nearing the end of his mortgage with a full clean credit history, he's hardly mr fly by night.

coylemj

Avatar MIA wrote: »

We're looking at this from the OP's POV.

Fine, you chip in tea and sympathy, I'll deal with reality and the probable attitude that will be taken by an alternative lender - 'you can't pay your mortgage, if I give you a loan to pay it, how are you going to pay me?

chisel1

balance outstanding on mortgage is 4.5k. Under normal circumstances it would be payable but because of ill health his reserve is gone.

NIMAN

Thats tight, missing a payment with only 4.5k left to pay.

Can family not help out?

tracey turnblad

The only advice I can give you is to contact the bank do not ignore this problem they may be willing to come to some arrangement. I hope he gets sorted

Ring the bank advise them you are In arrears and they will enter you into the mortgage arrears resolution process they may be able to slightly extend the mortgage or reduce the payments for you

jimmycrackcorm

the banks have to follow the MARP process so the first port of call is to let them know ASAP.

Sound Bite

Contact the bank and request a mortgage holiday/repayment under the circumstances. I think they can approve up to 3 months in some cases.

If they approve this it won't affect his credit rating.

thierry14

Poor guy

19 years of ploughing away and right at end gets in trouble

You should set up a fundraising account OP

Let us know when setup and I will donate 10e

cup of tea

I know it is stating the obvious but has he mortgage protection Insurance?

You would be surprised the amount of people that are unaware they even have a policy. Banks were forced to refund certain policies but only had to go back so far. As his mortgage was created such a long time ago there is a slim chance he might have one of these policies in place, though unlikely.

Has he got a work vehicle he could flog for €5k!?

chisel1

One sibling. Very well off, said no - outright.


Business van is for sale. The most it will release is 2k, Wont help this month though.

I have arranged to pay this month for him. But not till about the 27th, passed the due date of 17th.

He owes tax 4k, credit card 1.7k, 2.6k due on other "compulsory" fees which must be paid to kids college by end of the month.
Credit card will be ok with minimum payment. (interest and fees not withstanding)
Tax - I am talking to collections (revenue) on his behalf.
I believe a credit plan can be entered into for the college.

Hes had a heart attack and surgery but is ok now.

CramCycle

Compulsory fees for college. If it's one of the main third level institutions, you will get away with late payments for quite a few months. The kids just won't get access to their exam results.

NIMAN

chisel1 wrote: »

One sibling. Very well off, said no - outright.

With family like that .........:mad:

Stealthfins

A few months to go, he or she will be OK.
I know people who've been playing cat and mouse with banks since 2008 and they're still in their home's and probably paid up 20â„… of the last 9 year's.

They could take a few months break from the payments, they're OK

tracey turnblad

CramCycle wrote: »

Compulsory fees for college. If it's one of the main third level institutions, you will get away with late payments for quite a few months. The kids just won't get access to their exam results.

Yes I work in a college this is true

chisel1

tracey turnblad wrote: »

The only advice I can give you is to contact the bank do not ignore this problem they may be willing to come to some arrangement. I hope he gets sorted

Sound Bite wrote: »

Contact the bank and request a mortgage holiday/repayment under the circumstances. I think they can approve up to 3 months in some cases.

If they approve this it won't affect his credit rating.

thierry14 wrote: »

Poor guy

19 years of ploughing away and right at end gets in trouble

You should set up a fundraising account OP

Let us know when setup and I will donate 10e

Thanks, but if I suggested that he'd crack. The last couple of years have not been good all round.

Stealthfins wrote: »

A few months to go, he or she will be OK.
I know people who've been playing cat and mouse with banks since 2008 and they're still in their home's and probably paid up 20â„… of the last 9 year's.

They could take a few months break from the payments, they're OK

Thanks, we will contact them on Monday.

chisel1

tracey turnblad wrote: »

Yes I work in a college this is true

Ill see if they will accept installments over the next few months.

CramCycle

chisel1 wrote: »

Ill see if they will accept installments over the next few months.

No need for installments unless it is a private college in which case give them a call. They will have their student cards for the year. Just make sure it is paid by exam results time or before next year. Don't get me wrong, it's not my first option but given the situation.

Also the advice above about any other work is good, take anything if it keeps the wolves from the door. If he was self employed though for so many years, I imagine he has some skills which could land him an OK job.

3DataModem

The bank will almost definitely let him rearrange with such a small balance. Ask for a holiday OR a reduction in monthly and term extension. Once approved ensure you have a plan to pay.

Trish56

Does he have an income protection policy by any chance or a payment protection policy for the mortgage ?

He should speak to MABS who are very experienced in dealing with banks etc.

Alkers

If the kids are of college age, get them to get part-time jobs and cough up a portion to help out their old man. In the mean time, make contact with the bank and explain the situation, should be possible to much reduce the monthly payments by extending the term. Ditto re the university, explain the situation and come to an agreement. Are they in a position to rent out a room in the family home? 14k tax free potential there, could get them over the hump. Now that he's recovering, could his business become viable again?

Avatar MIA

Trish56 wrote: »

Does he have an income protection policy by any chance or a payment protection policy for the mortgage ?

He owns his own work van, and therefore likely self employed and wont qualify for income protection.

Trish56

Income Protection policies are specifically for the self employed to protect his income if he becomes ill.

Avatar MIA wrote: »

He owns his own work van, and therefore likely self employed and wont qualify for income protection.

jd

chisel1 wrote:

I have arranged to pay this month for him. But not till about the 27th, passed the due date of 17th.

I wouldn't worry about been 2 weeks later like that. The question would be how will he pay the following months