Mortgage Arrears Resolution Process (MARP)
What is the Councils Mortgage Arrears Resolution Process (MARP)?
Donegal County Council’s Mortgage Arrears Resolution Process (MARP) has 5 steps:
Step1 – Communication
We will make contact with you after more than one installment has been missed. Further follow up communications will be through reminder letter or a telephone call. It is imperative that you engage with us at an early date and to contact us in advance of a likely change in your financial circumstances that will effect your ability to repay your mortgage.
Staff dealing with Housing Loan Arrears cases may be contacted directly at (074) 9172587 or (074) 9172235. It should be stressed, that the responsibility to pay the loan remains with you as the customer at all times.
Step2 – Financial Information
For us to help you, we will need to get up to date income and expenditure figures. This is basically a record of all income to the household (social welfare, employment, etc) and outgoings (food, mortgage, loans, insurance, etc). Please dowload the Standard Financial Statement, complete and return with all requested supporting documentation to the Housing Loans office.
We are happy to help you complete this financial statement or alternatively you may wish to seek independent advice from the Money, Advice and Budgeting Services (MABS).
Once we have the completed financial statement, we are in a position then to assess your case.
Step3 – Assessment
It may be necessary as part of the assessment process to arrange a meeting with you to review the financial statement submitted. We will review the financial statement and assess the mortgage, taking into account:
- Current income and expenditure;
- Personal circumstances;
- Overall level of debt;
- Current repayment capacity;
- Previous credit history.
Step4 – Resolution
Once the assessment has been completed, we will consider all the alternative options. These options may include:
- Extend Mortgage Term. This means that the monthly repayments will be reduced but the duration of the loan will be longer.
- Interest only for a period. This means that the interest only portion of the loan is payable for a period. However, the capital element accumulates as arrears during this period.
- Reduced Payments. This means that a reduced amount is paid each month for a period. However, the shortfall in the monthly payments will accumulate as arrears and will be due.
- Postpone Payments. This means that monthly payment are postponed only for a period and all arrears will be due when payments recommence.
- Changing the type of Loan. This means moving to a different type of loan, such as from a shared ownership loan to an ordinary loan.
- Capitalising the Arrears. This means that we add the arrears to the capital value of the loan, and the arrears are paid then over the rest of the loan term.
If none of these options are sustainable, the only other options may be:
- Voluntary surrender of the property;
- Trading Down;
- Voluntary Sale;
- Repossession;
- Mortgage to Rent. This means the borrower voluntarily allows the Local Authority to take possession of the primary residence, and the borrower becomes a tenant in that primary residence.
It should be borne in mind, that if the property is surrendered on a voluntary basis, all the arrears, including any negative equity together with the cost of the associated legal fees, will be payable by the customer.
In all cases, the Council will take into account the outcome of the MARP process and the borrower’s subsequent compliance with the “surrender” agreement in the context of considering future applications for Social Housing Support.
When the Council have completed its considerations, you will be notified of the decision in writing and it will be explained clearly to you at a prearranged meeting.
Step 5 – Appeals
You have the right to appeal:
• The decision made
• How we dealt with your case under the MARP
To appeal, please write to the Chairperson, Appeals Officer, Housing Loan Section, Donegal County Council, County House, Lifford, Co.Donegal.
The appeal must be in writing and submitted within 21 working days of our decision.
USEFUL CONTACTS
Housing Loan
Housing Loan Section, Donegal County Council, County House, Lifford.
Tel: (074) 9172587 or (074) 9172235
Email: info@donegalcoco.ie
MABS
The local Money Advice and Budgeting Service contact numbers are as follows:
- Buncrana: 076 1072470
- Donegal Town: 076 1072480
- Derrybeg: 076 1072650
- Letterkenny: 076 1072460
State Supports
You may be able to claim state supports, such as Mortgage Interest Supplement or Mortgage Interest Relief.
Mortgage Interest Supplement
If you are unemployed or your pay has been reduced, you may be entitled to claim a Mortgage Interest Supplement to help you with your mortgage repayments. To find out if you’re eligible for this supplement, contact the Community Welfare Officer at your Local Health Centre or visit www.welfare.ie
Mortgage Interest Relief
Mortgage interest relief is a tax relief based on the amount of mortgage interest you pay in a given tax year for your primary residence. For more information on Mortgage Interest Relief visit www.citizensinformation.ie or www.revenue.ie
Mortgage Protection Insurance/Mortgage Payment Protection Insurance
You should check the terms and conditions of your Mortgage Protection Insurance/Mortgage Payment Protection Insurance policies as they may offer some financial assistance.
Citizens Information
www.keepingyourhome.ie is a website provided by the Citizens Information Board and MABS and the site provides comprehensive information on the services and entitlements available if you are having difficulties making your mortgage repayments.
**WARNING**
Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.