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	Anybody who is struggling to pay their mortgage will have to engage in lengthy and sometimes complicated interaction with their bank.<br />
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Doing this can be time-consuming, stressful and intimidating, and many people feel they are constantly on the back foot.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">However, there are structures and procedures in place to assist borrowers, and by following these and other strategies, the process can be a lot less daunting for borrowers.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">If you run into difficulty with your mortgage, either by being in arrears or before you go into arrears (pre-arrears), you are afforded the protection of the Code of Conduct for Mortgage Arrears (Revised June 2013). The code lays out the mortgage arrears resolution process (MARP). This is a formal process which all banks are obliged to follow in dealing with those in mortgage arrears or pre-arrears, and I would suggest this should be read. It is available on www.mortgageholders.ie</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">There is a significant imbalance in power between the bank and borrowers. Whilst the following might not guarantee your lender will agree with your proposals, you will be better prepared for dealing with your bank.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">These are general guidelines and the process can be unwieldy. You should, where possible, get professional advice before signing any documents from your lender.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">The process is designed to assess a borrower&#39;s financial position and come to an agreement, based on a set of options, for a sustainable mortgage for that borrower.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">If you are in arrears and have not yet done so, you need to contact your lender. This will make you a &quot;cooperating borrower&quot;. This should be done by phone and in writing. A full list of the heads or mortgage arrears departments for each lender is available on www.mortgageholders.ie</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Now we meet the standard financial statement (SFS). This is the most important document in this process and time and effort needs to be afforded when completing it. All lenders are required to use this SFS as a guide when assessing options for borrowers. They are required to have a guide on how to complete this and the same is available on the central bank&#39;s website. The information required in the SFS includes all household income, expenditure, assets and liabilities. This should be completed honestly and accurately. All borrowers&#39; information needs to be on the SFS.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Each borrower is required to submit accompanying documentation such as three recent payslips or social welfare receipts and three months&#39; bank statements.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">A completed and signed SFS with the accompanying documentation should be sent by registered post to the arrears support unit of your lender. You should ask in writing what exact mortgage cure or restructure solutions they provide. A lender can exclude some of the list of options from its MARP process.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Once the lender has received your SFS, they are required to evaluate it against all solutions they provide. The lender will make an offer or select an option and send this to you in writing. They must outline why that decision was made.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">You may request in writing that the lender liaises with a third party nominated by you. The lender must comply with this request but is likely to write to you directly with any correspondence.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">There are a range of possible options available to borrowers under MARP. No lender facilitates all these options, despite political utterances to the contrary. However, borrowers should request that all options are considered. More than one option can be used at the same time. The options are: l Interest-only payment for a specified period.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* A permanent or temporary reduction in the interest rate.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* Payment of interest and a part of the capital for a period.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* A payment break for a period.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* Extending the term of the mortgage.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* Changing the type of mortgage, except in tracker mortgages, unless agreed.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* Capitalising the arrears and interest.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* Any voluntary scheme such as a deferred-interest scheme.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* Equity participation (lender takes a share, principal is reduced).</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* A split mortgage (part serviced/part warehoused, with or without interest on the warehoused part, depending on the lender).</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">* A debt write-off.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">One advantage of the new code of conduct is that all restructure offers must include the advantages and disadvantages of the offer.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">You either &quot;accept&quot; or &quot;reject&quot; the offer. Accepting means you agree a new mortgage contract with your lender. If you &quot;reject&quot; because you don&#39;t like the offer or feel it&#39;s not sustainable, you risk being thrown out of the MARP process, but you can then appeal. This must be done within the timeline advised by your lender.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Unfortunately, this appeal is to an internal bank committee. Any appeal is outside the MARP process and there is only a three-month protection when you leave the process before a lender can begin repossession proceedings.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Finally, your lender might deem your mortgage unsustainable and suggest that you voluntarily sell or voluntarily surrender the property. In these circumstances, the banks appeals system is also open to you.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">If your appeal to the bank fails, you can take your case to the Financial Services Ombudsman. This appeal can only deal with the MARP process and not the decisions such as mortgage solutions offered.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">The new code of conduct for mortgage arrears for the first time allows a bank to define an uncooperative borrower.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">If they consider someone uncooperative, they are required to send a letter in writing, giving time for the borrower to engage. If no response is received, they are then allowed to make an unsolicited visit to your house, giving you five days&#39; notice in writing.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">If, at any time, the borrower engages, then they re-enter the process outlined above. However, if the borrower does not engage, following the steps as taken by the lender, they are deemed uncooperative, and repossession proceedings can begin immediately. An uncooperative borrower may be subject to penalty charges and interest and may not be eligible to utilise the provision of the 2012 Personal Insolvency Act.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">It would be irresponsible for anyone not to advise that if you are in arrears or mortgage distress, you must immediately engage with your lender.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">You should open your own MARP file and ensure that the process is at all times documented.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">Keep telephone contact to a minimum and make a note of any telephone conversations you do have. If possible, record any telephone conversations and advise the lender when they call that you are doing so.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">A major disadvantage of the new code of conduct is that the lender has no cap on the number of times they contact you. While all unsolicited communications must not be excessive, aggressive or intimidating, no steps have been taken by the central bank to ensure that banks behave reasonably. If you feel you&#39;re being harassed on the phone by your lender or any creditors, it might be worth purchasing a cheap pay-as-you-go phone, changing your contact details with the bank and any other difficult creditor reflecting your new phone number. This will allow you take the call or reply to the call (which you should do) at a time that suits you.</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">In the event that you can&#39;t reach an agreement with your lender through the MARP process and your lender indicates your mortgage to be unsustainable, you have a further option to avail of an insolvency arrangement under the 2012 Personal Insolvency Act. (www.isi.gov.ie)</span></font></h2>
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	<font face="Trebuchet MS, Helvetica Neue, Helvetica, sans-serif"><span style="font-size: 14px; font-weight: normal; line-height: 18px;">David Hall is a director of the Irish Mortgage Holders Organisation, which can be contacted at www.mortgageholders.ie.</span></font><br />
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	<a href="http://www.independent.ie/business/personal-finance/how-to-lessen-the-load-of-dealing-with-your-lender-29518895.html">http://www.independent.ie/business/personal-finance/how-to-lessen-the-load-of-dealing-with-your-lender-29518895.html</a></h2>
