Debt chronicles: There can be no solution for some people

A while ago we decided to document some of the things we encounter as debt managers in order to give a taste of the experience from within the process. This is more than anecdotal but nowhere near outright empirical proof of how things are going for everybody else in the process.

The most recent meeting involved a site in rural Ireland. The borrower was a former developer who now lives abroad. Like many property deals he wasn’t the only one on it but he happens to be engaging and when that happens the idea of ‘severable liability’ is about all the bank can hope for.

The developer made an offer of a 30% recovery, this was rejected at the start of the year. Given that the site is worth about 20% of what it went for (at best) this would have been a decent outcome, frankly I’m surprised the developer even made one so high given that in this instance they have the bank over a proverbial barrel.

The loan is in deep arrears, but what’s worse is that the …

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Standard Financial Statement or SFS – for people in mortgage arrears

If you go into arrears on your mortgage or you talk to your lender because you believe you are a ‘pre-arrears’ candidate then you will be asked to fill in a ‘Standard Financial Statement‘ or SFS which is part of the Mortgage Arrears Resolution Process (MARP) which started last year.

Engaging with the lender is a key tenet of this and filling in the SFS and liaising with the lender on aspects of it. The information in this is what will be used to negotiate the repayment that you will pay in cases where lifestyle adjustment does not allow you to make the full payment.

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