MARP stands for the Mortgage Arrears Resolution Process. It is a system devised by the Central Bank of Ireland which requires all lenders (Banks and Funds) to adhere to a process for Borrowers who fall into arrears with their mortgage.
During the MARP process a lender may not institute legal proceedings against a Borrower.
STEP 1 – All about Co-Operation
To be protected by MARP you must be a Co-Operating borrower. This means that you must supply the lender with a Standard Financial Statement (SFS) and supporting documentation. This form is available on-line or from your lender and care should be taken in filling it out.
Once you have supplied a SFS you are protected.
STEP 2 – Lender carries out an assessment
The lender will consider your SFS (Standard Financial Statement) and from that consideration will propose a resolution if that is possible. To begin with the lender will propose a short-term solution (usually 3-6 months). There are a variety of short term solutions that can be proposed by the lender that will involve the borrower being required to pay as much as they can pay.
STEP 3 – Offer of Resolution
Offers of resolution on your mortgage arrears may include:
- Paying interest only, or interest and part of the capital, for a period
- Permanently or temporarily reducing the interest rate
- Deferring repayments (or part) for a period
- Extending the mortgage term
- Changing the type of mortgage
- Adding mortgage arrears and interest to the principal
- Warehousing part of the mortgage (including through a split mortgage)
- Reducing the principal
- A “deferred interest” or other voluntary schemeWhere the lender determines the debt to be unsustainable they may commence enforcement proceedings.
STEP 4 – Appeal
There is a right to appeal any decision made by the lender through an appeals system within the mortgage lenders process. From there an appeal can be made to the Financial Services Ombudsman.
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