Are the banks helping people at all?

[Anonymous]

There was a lot of talk a while back about the banks helping struggling mortgage holders and there were suggestions of debt write downs and fair payment plans but I don’t know anyone who has had their mortgage re-assessed and has actually been properly helped by their bank.

Also, on the news this week it was revealed that AIB are not charging interest on the shelved part of a split mortgage but the Bank Of Ireland are.

how can one back do this and the other not?

FC – any thoughts or advice??

[Financial Companion]

Actually Sabbi, a lot of people have had new discussions with their mortgage providers, although not all in a good way! With the targets set by the central bank to have a certain amount of distressed mortgages "addressed" by a certain date, it seems they are categorising the customers in terms of the likelihood that the loan can and will be back on track. In the worst cases it is simply commencing eviction proceedings. In cases of large negative equity where there is a chance that people will get back on track, they are offering to "park" a portion of the mortgage until the future. Now if the portion parked is done interest free or at a very low rate (like 1%) then this can be helpful. If full interest still accrues, this does absolutely nothing to help the borrower and becomes just another name for arrears as the parked portion will continue to increase! It’s what happens to the parked portion in the future is crucial (either repaid when possible, repaid from the sale of the property after the owners are deceased, or written off) but they are not confirming what will happen as they simply don’t know themselves! Giving back a house or having it repossessed does not get rid of the balance of debt that still hangs over people and can make life difficult in the future. That brings us into the other area of insolvency which is still going through the hoops.

[Jedt]

I’ve actually had to turn the radio off a few times this week….

The whole Anglo tapes debacle has my blood boiling and after feeling outraged, then I wonder, whats the point in even getting upset anymore?

There is no accountability from the people who put us in this mess and no-one in government has a clue or really cares how this affects the normal people like us who have to struggle to pay overinflated mortgages. 😈

Its a sick and twisted situation and the only ones paying the price, as usual, is the regular common person who had nothing to do with it in the first place.

Its really disheartening.

[munchin]

Totally agree Sabbi – the word disheartened is exactlly how i feel alot of the time – we’re trying here to keep a small family business afloat and it’s a constant struggle. As for myself & hubby we’re dealing with all the same extra costs etc as everyone else and to hear those "things" laughing like that oh god really really upsets me. God forbid i did something like that in our business and believe me the book would be flung at me!!!!!

[Jedt]

Its really hard keeping a business afloat in these tough times, somedays I despair at how hard we work for what seems like not nearly enough to live on. We know we have to keep going and thankfully, we like what we do but its not easy staying positive when times are so bleak.

We save money everywhere we can and are so careful about our budget for things but its very difficult. When the kids wants a game or trip to the cinema something spur of the moment, we usually have to say no – we just cannot do the extras for them like we used to a few years ago.

Knowing we have to pay back a mortgage – that we got when we had 2 well paid jobs – seems impossible now because we are on far less of a salary now than we were then but still, we are expected to maintain the same payments regardless of our situation. Its ridiculous.

Its a real worry andthe banks don’t seem to be bothered about finding real solutions, they just want the mortgages paid. There is no care or thought to the common person.

We don’t owe enough to be important enough to get write offs like all the people who owed millions or billions – so the banks will continue to squeeze us until they cannot get any more from us. There is nothing to stop them – they are still a law unto themselves.

I am, once again, embarrassed to be Irish at all that has come out in the media this week. 🙁

[Author]

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