LATEST PROPERTY NEWS AND QUESTIONS 15-May-2024
HOUSE REPOSSESSION: GIVING BACK THE KEYS
Ignoring correspondence and calls from your lender when facing mortgage arrears may seem like a temporary relief, but maintaining open communication is crucial for long-term resolution. Lenders are mandated to engage with borrowers experiencing financial difficulties, and repossession should always be considered a last resort. Here's why it's essential to keep communicating:
Legal Obligations of Lenders
Lenders are legally obligated to engage with borrowers who are in arrears on their mortgages. By avoiding communication, you may inadvertently limit your options for resolving the situation and increase the likelihood of repossession proceedings.
Repossession as a Last Resort
While repossession is a possibility in cases of severe arrears, it's important to remember that it should be considered a last resort. Lenders typically prefer to work with borrowers to find alternative solutions that allow them to retain ownership of their property and repay their debts.
Avoid Giving Back the Keys
Simply leaving the property and returning the keys to the lender is not a viable solution. Even if you vacate the property, you remain the legal owner and are still liable for repaying the mortgage until the property is either repossessed, sold voluntarily, or surrendered voluntarily.
The decision to simply leave a property and return the keys to the lender might seem like a quick fix to alleviate the burden of mortgage repayments, but it's important to understand the legal and financial implications involved. Here's why giving back the keys is not a viable solution:
Continued Liability for Mortgage Repayments
Returning the keys to the lender does not absolve you of your financial obligations as the homeowner. You remain legally liable for repaying the mortgage until the property is dealt with through repossession, voluntary sale, or voluntary surrender. This means that even if you vacate the property, you're still responsible for fulfilling the terms of the mortgage agreement.
Potential Consequences of Abandonment
Simply leaving the property vacant without following the proper procedures can lead to various legal and financial consequences. For example, the lender may initiate repossession proceedings, which can result in additional costs and fees. Furthermore, if the property is left unattended, it may fall into disrepair, potentially reducing its value and exacerbating the financial implications.
Impact on Credit Rating
Abandoning the property and defaulting on mortgage payments can severely damage your credit rating. Missed payments and repossession proceedings can stay on your credit report for several years, making it challenging to secure credit in the future and negatively affecting your financial standing.
Loss of Control over the Property
By relinquishing the keys to the lender without following the appropriate procedures, you lose control over the property's destiny. The lender may proceed with repossession or sale without your input, potentially resulting in a less favorable outcome than if you had actively engaged in the process.
Legal and Financial Advice is Essential
Before considering giving back the keys or abandoning the property, it's crucial to seek legal and financial advice. A qualified advisor can provide guidance on the best course of action based on your individual circumstances, helping you understand your rights and obligations and exploring alternative solutions to address mortgage arrears.
Attend Court Hearings
If repossession proceedings have advanced to the stage of a court hearing, it's imperative to attend. Failing to appear means your side of the story won't be heard, potentially resulting in an unfavorable outcome. Attending court demonstrates your willingness to engage with the process and can positively influence the decision.
Opportunity to Present Your Case
Attending court provides an opportunity to present your case and any efforts you've made to address the arrears. Showing that you've made genuine efforts to make repayments, even if they've been limited, can reflect favorably on you and may lead to a more lenient judgment from the court.
While it may be tempting to avoid communication or give back the keys when facing mortgage arrears and potential repossession, these actions are unlikely to resolve the situation and may exacerbate it. Keeping lines of communication open with your lender, attending court hearings, and actively participating in the process can increase the chances of finding a favorable resolution and potentially avoiding repossession.
Giving back the keys may seem like a simple solution to mortgage repayment difficulties, it's important to recognize that it does not absolve you of your responsibilities as a homeowner. Seeking professional advice and exploring alternative options is essential to avoid the potential legal, financial, and credit-related consequences associated with abandonment of the property.
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Limerick MABS Floor 1, Riverstone House, 23-27 Henry Street, Limerick, V94 3T28 0818 07 2210 limerick@mabs.ie LOCATION MAP |
Longford MABS Fee Court, 1 Church Street, Longford, N39 W1X7 0818 07 2640 longford@mabs.ie LOCATION MAP |
Louth MABS, Drogheda 1 Mayoralty Street, Drogheda, A92 ADC9 0818 07 2490 drogheda@mabs.ie LOCATION MAP |
Louth MABS, Dundalk 58/59 Anne Street, Dundalk, A91 RF97 0818 07 2540 dundalk@mabs.ie LOCATION MAP |
Mayo MABS (North), Ballina Cualgara, Teeling Street, Ballina, F26 WD35 0818 07 2660 ballina@mabs.ie LOCATION MAP |
Mayo MABS (South), Castlebar Unit 14, Nephin Halls, Hopkins Road, Castlebar, F23 NF82 0818 07 2670 castlebar@mabs.ie LOCATION MAP |
Meath MABS 1st Floor, 1B Brews Hill, Navan, C15 XR8Y 0818 07 2680 meath@mabs.ie LOCATION MAP |
Monaghan MABS 3rd Floor, Bramley House, Muckno Street, Castleblayney, A75 Y034 0818 07 2690 monaghan@mabs.ie LOCATION MAP |
North Dublin MABS, Ballymun Office Main Street, Ballymun, Dublin 9, D09 K8W2 0818 07 2150 ballymun@mabs.ie LOCATION MAP |
North Dublin MABS, Blanchardstown Office 7A Church Avenue, Blanchardstown, Dublin 15, D15 TX40 0818 07 2330 blanchardstown@mabs.ie LOCATION MAP |
North Dublin MABS, Coolock Office Northside Civic Centre, Bunratty Road, Coolock, Dublin 5, D17 K462 0818 07 2290 coolock@mabs.ie LOCATION MAP |
North Dublin MABS, Dorset Street Office 53 Upper Dorset Street, Dublin 1, D01 K5F2 0818 07 2510 dorsetstreet@mabs.ie LOCATION MAP |
North Dublin MABS, Finglas Office 5 Church Street, Finglas, Dublin 11, D11 XF78 0818 07 2170 finglas@mabs.ie LOCATION MAP |
North Dublin MABS, Swords Office (Fingal) Third Floor, North Colonnade, The Plaza Village, Swords, K67 R9X9 0818 07 2550 swords@mabs.ie LOCATION MAP |
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Tipperary MABS (South), Carrick-on-Suir Nano Nagle Community Resource Centre, Clancy House, Greenside, Carrick-on-Suir, E32 P928 0818 07 2810 carrick_on_suir@mabs.ie LOCATION MAP |
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Disclaimer: Although we will do our best to provide you with correct details, information provided is subject to errors or omissions. IrishHouses.ie is a private property blog on the subject of house repossessions. We are not affliated with MABS or any other organisation and all advice and information provided on our website should be checked with the individual companies or organisations involved.
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IrishHouses: Mortgage Debt, Arrears and House Repossession
Disclaimer: Although we will do our best to provide you with correct details, information provided is subject to errors or omissions. IrishHouses.ie is a private blog on the subjects of mortgage debt, arrears and house repossession in Ireland.
We are not affliated with any organisation or private company and all advice and information provided on our website should be checked with the individual companies or organisations involved.
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