Repossession Proceedings – What to do?
A brief guide to help you avoid the repossession of your home.
Disclaimer: This brief guide discusses repossession proceedings and how you can seek to remain in your home by availing of a Personal Insolvency Arrangement to restructure your mortgage. Every individual case has its own unique set of circumstances and this guide is not to be taken as legal advice. If you find yourself facing repossession proceedings, please contact us immediately (at no charge) to see how we can assist.
The repossession process – a bank’s perspective
In Ireland the repossession of a a family home is generally speaking not the first choice of a bank. When someone falls into arrears and is facing issues with repaying their mortgage the bank will engage with you to try and find a solution. They may ask you to complete a SFS (Standard Financial Statement) to gain an understanding of your current circumstances. In some cases they will offer an ARA (Alternative Repayment Arrangement) which may provide a temporary change to your mortgage payments. In the event that an arrangement cannot be reached, or the homeowner is deemed to be uncooperative, the bank most likely will instigate legal proceedings.
An order of possession is not the end of the process.
Your bank will write to you that legal proceedings have begun. There are multiple rounds of correspondence that you will receive outlining your mortgage arrears and demanding payments. Eventually you will receive a court summons. In most cases, your first hearing will be adjourned. The Court may delay matters further and adjourn proceedings, but ultimately matters will progress and an Order of Possession will be granted. This Court Order grants the bank the right to seek the possession of the property. The next step for the Bank is to return to Court and seek an Execution Order. This will provide for the Sheriff to come and take possession of the property. They may not to do this straight away, but if they are taking such steps you must seek assistance immediately.
If you find yourself facing an Execution Order, you should urgently seek assistance.
Is there anything I can do to stay in my home?
The answer is YES. Regardless of if you find yourself at any stage of Court proceedings you should reach out for advice immediately. MABS and/or a Personal Insolvency Practitioner will be able to advise you on your options. For example you may be eligible for a Personal Insolvency Arrangement (PIA) that would seek to restructure your mortgage and keep you in your home. The Mortgage to Rent scheme (“MTR”) may also be a consideration which can be incorporated into your PIA. A key aspect of the Personal Insolvency Process is Court Protection from your creditor’s. A Personal Insolvency Practitioner (“PIP”) applies for a Protective Certificate on your behalf which gives you breathing space. Over a 70 day period, your PIP will engage with your creditor’s and seek to find a solution. It is worth noting that the Abhaile Scheme is in place to cover the cost of your personal insolvency consultation.
According to the Insolvency Service of Ireland, in over 95% of PIAs the debtor remains in their family home.
The Personal Insolvency process is a legal process and can be confusing for those without a legal/financial background. Rest assured, at McNamara & Associates, we seek to discuss and explain each step. We understand the value of Plain English. To summarise the entire process, it is a second chance with your home lender based on your circumstances today. For example you may now be a single income household, feeling the pressures of inflation/cost of living increases or perhaps facing unemployment due to health concerns. Proposals are made based on your affordability and protecting your household with a reasonable standard of living.
To summarise the entire process, it is a second chance with your home lender based on your circumstances today.
Conclusion
In conclusion, It is essential that you do not ignore legal proceedings and know what there is support available to you through MABS and a Personal Insolvency Practitioner. We find that often the first step of getting in touch is the hardest. But from that point on, you will have the support of this office as we seek to find a solution to keep you in your home.
If you are facing mortgage arrears and wish to discuss your eligibility for this scheme, please contact us on 1800 990 099 or click the button below to schedule a call back.
