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Moratorium Mortgage Query

  • 02-01-2018 8:13pm
    #1
    Steviesol
    Registered Users, Registered Users 2 Posts: 250 ✭✭


    Hi,

    I wonder does anyone know do banks freeze arrears while a house is for sale like a moratorium, I am precisely curious about Pepper finance.

    Thanks


Comments

  • #2
    daheff
    Registered Users, Registered Users 2 Posts: 5,871 ✭✭✭daheff


    I don't believe so.

    Ask yourself, why would they? what would they get out of it?


    A house sale could go on for years....would the bank be happy to not get their mortgage payments (and interest) from the time you decide to sell until you get the money?


  • #3
    Steviesol
    Registered Users, Registered Users 2 Posts: 250 ✭✭Steviesol


    Okay, there is only a small 20k mortgage left, with no way of paying ? I mean what other options are there ?


  • #4
    source
    Registered Users, Registered Users 2 Posts: 5,287 ✭✭✭source


    If there's only €20k left on the loan and the house is on the market, why would they stop charging interest? It doesn't make any financial sense for them to do so.

    Unless the property is a complete wreck you're going to make more than €20k in the sale and Pepper, or whoever the loan owner is will get the full outstanding balance back from the sale proceeds with the surplus going to you.

    Usually they will look at short term (read 3 or 4 months) moratorium if the property is in negative equity, purely because it limits the amount they are likely to have to write off if the sale is in full and final settlement. It also limits the amount of residual debt the borrower will be left with should the bank chase the borrower for the residual.

    If the property is in equity, it's pretty much a case of pay the bank the money they're owed.


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