LATEST PROPERTY NEWS AND QUESTIONS 16-May-2024
HOW TO AVOID HOME REPOSSESSION
Communicating with Your Lender:If you find yourself facing difficulties in meeting your mortgage payments in Ireland, prompt communication with your lender is crucial. Mortgage lenders adhere to a code of conduct that outlines specific steps they must follow when borrowers encounter payment challenges. It's important to note that repossession should be considered the last resort for your lender.
In times of financial struggle, initiating contact with your lender as early as possible is paramount. The codes of conduct for mortgage lenders emphasize the importance of open dialogue, allowing borrowers the opportunity to discuss potential solutions to mitigate financial hardships.
Timely Action to Prevent Repossession:
Failure to keep up with mortgage payments places your home at risk of repossession. However, taking proactive steps can prevent such a scenario. Early engagement with your mortgage provider is key, even if the situation may seem overwhelming. The tendency to avoid addressing the issue should be replaced with a commitment to finding a resolution and safeguarding your family home.
Creating a 'holding letter' can buy some extra time before legal issues arise. This formal letter informs the lender about the reasons for arrears, demonstrating your commitment to resolving the situation. It also sets the stage for further communication, allowing you to present a plan for addressing the arrears.
The Role of Money Advice and Budgeting Service (MABS):
The Money Advice and Budgeting Service (MABS) in Ireland offers invaluable support to individuals facing repossession. Operating a Dedicated Mortgage Arrears service and a court mentor service, MABS plays a central role in the Abhaile scheme, established to assist those in serious mortgage arrears. Services provided by MABS include financial advice, legal guidance, and insolvency advice.
MABS can help prepare individuals for court appearances, offering insights into the types of questions they may face and guiding them on the necessary documentation to support their case.
Court Mentor Service:
Understanding that court proceedings can be intimidating and overwhelming, MABS extends a Court Mentor service. This service offers individuals facing repossession the support of a mentor who can navigate the complexities of legal proceedings, ensuring clients are well-prepared and informed about the court process.
Abhaile Scheme:
At the forefront of MABS' efforts to prevent house repossession is the Abhaile scheme. Established in 2016, this scheme is specifically designed for individuals experiencing serious mortgage arrears and facing the imminent risk of losing their homes. Abhaile provides an array of essential services, including financial advice, legal guidance, and insolvency advice.
Financial Advice:
One of MABS' key roles in preventing house repossession is offering comprehensive financial advice. MABS professionals work closely with clients to assess their financial situations, identify areas of concern, and develop strategies to address mortgage arrears. This proactive approach aims to empower clients to regain control of their finances and work towards sustainable solutions.
Legal Advice and Guidance:
MABS doesn't just stop at financial advice; it extends to providing crucial legal guidance. This includes helping clients understand the legal implications of mortgage arrears, offering insights into potential court proceedings, and ensuring that individuals are well-informed about their rights and responsibilities.
Insolvency Advice:
For those facing severe financial challenges, MABS offers insolvency advice as part of the Abhaile scheme. Insolvency practitioners associated with MABS work towards negotiating feasible solutions with lenders, aiming to prevent the drastic measure of house repossession.
Court Preparation:
Recognizing the anxiety and uncertainty associated with court appearances, MABS helps clients prepare for legal proceedings. This involves educating individuals about the types of questions they may encounter, advising on necessary documentation, and offering support throughout the court process.
Legal Assistance and the Abhaile Scheme:
For those in need of legal advice, civil legal aid may be accessible, depending on individual circumstances. The Abhaile scheme extends coverage for free legal aid and advice to eligible borrowers, ensuring access to legal support during challenging times.
Engaging with a Free Legal Advice Centre (FLAC) is also an option for obtaining advice on legal papers or addressing legal issues related to mortgage repayment challenges.
Additionally, seeking guidance directly from a qualified Personal Insolvency Practitioner (PIP) can be beneficial. A PIP will work to negotiate an affordable payment plan with the mortgage lender, aiming to put individuals back on track with their repayments and halt any repossession actions.
Personal Insolvency Practitioners are professionals who specialize in assisting individuals in financial distress, offering tailored solutions to address mortgage arrears and related challenges. PIPs possess a deep understanding of insolvency laws, providing a bridge between borrowers and lenders to negotiate feasible repayment plans.
PIPs are obligated to communicate transparently with clients, providing accurate and understandable information about their financial situation.
When individuals are facing mortgage-related challenges, engaging with a qualified PIP can be a strategic move. The PIP will work closely with the borrower to:
Negotiate with Lenders:
PIPs act as intermediaries between borrowers and lenders, negotiating affordable payment plans to address arrears.
Develop Repayment Plans:
PIPs collaborate with clients to develop realistic and sustainable repayment plans, considering their financial capabilities.
Halt Repossession Actions:
The primary goal is to prevent house repossession by halting legal actions through effective negotiation and resolution strategies.
Conclusion:
In times of mortgage payment difficulties, proactive communication with your lender and seeking assistance from reputable organizations like MABS can make a significant difference. Timely action, adherence to codes of conduct, and leveraging available support services contribute to a more informed and effective approach to managing mortgage-related challenges.
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.
Recent Articles: