Help at hand to avoid repossession
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FAMILIES at risk of having their homes repossessed by a bank or building society have been told they have up to eight options to keep the bailiffs from the door.
Homeowners can avoid having their house taken from them by opting to refinance their mortgage, paying only the interest on their home loan, or by choosing to pay it off over a longer period of time.
The new free guide setting out how to avoid having a house taken by the banks has been issued by financial adviser Karl Deeter of Irish Mortgage Brokers.
Sample letters to send to lenders are included in the guide and it explains how the courts approach moves to repossess a house.
The new guide comes out just weeks after the Financial Regulator issued a new code of conduct on mortgage arrears.
The code, which is set to become law, stops Bank of Ireland and AIB from initiating legal actions to repossess homes for at least a year. Other lenders have to wait at least six months before starting legal moves to repossess a home.
Mr Deeter, operations director of Irish Mortgage Brokers, stressed that anyone with mortgage arrears would be well advised to communicate with their lender at all times.
The regulator's new code of conduct only protects the borrower if they work with the lender, he said.
Homeowners struggling to pay the mortgage were told to budget sooner rather than later.
"You need to know where all of your money is going. Work with the help available, namely Money Advice and Budgeting Service (MABS), to see if you qualify for mortgage interest supplement, or legal aid, and take control of the situation from day one," he said.
Homeowners were also advised to document everything, including all letters, emails, and other correspondence.
"Don't be afraid to come up with your own repayment plan. Negotiations don't all have to be one sided."
People with arrears should fill in a 'collections pack' questionnaires from the bank or any other requests for information in a timely manner.
"If you are going to lose your house, take the steps described to minimise the damage," he added.
Mr Deeter's guide can be downloaded free by typing "repossession guide" into Google.ie.
- Charlie Weston
