What’s the best way to deal with your bank when in Mortgage Arrears? The following tips will help you to proceed in the best possible way.
1. Engage with the bank before or when you first go into Mortgage Arrears. Provide any information that the bank may request and talk to the case manager or Arrears Support Unit of the bank.
2. Enter into the MARP (Mortgage Arrears Resolution Process) with the bank. This process provides protection while the bank assesses the borrower’s circumstances to see if the mortgage can be restructured in a sustainable and affordable way for the borrower going forward, the bank will look at both long and short term Alternative Repayment Arrangement options to give the borrower time to get back on their feet. For example, the term may be extended, or arrears capitalised to make the monthly mortgage repayments sustainable for the borrower going forward.
3. Meet with a PIP (Personal Insolvency Practitioner). If the arrears are in respect of the family home, the borrower will be entitled to a free consultation with a PIP who is registered under the Government’s Abhaile Scheme, which was set up to assist mortgage holders who are in arrears.
The PIP will discuss all of the available options with the mortgage holder. The PIP may recommend a PIA (Personal Insolvency Arrangement), which is a formal arrangement with the bank. The PIP prepares a proposal and deals directly with the bank throughout the PIA process.
4. Keep making monthly mortgage repayments. If you can’t pay the full amount due, continue to pay what you can afford monthly, do not stop making payments completely.
5. Cooperate and engage with the bank on a continuous basis and try not to overlook any requests for information.
6. Meet with a specialist Debt Management Advisor, who will provide advice on how to deal with your arrears situation and outline the various options available. The advisors may also engage and negotiate with the bank on your behalf.