Mortgage written off €61,950 in a PIA

Our client was a widower with children and prior to his wife’s death the couple were separated. After the couple’s separation, he purchased a new home for himself and a buy to let property.

He then took out a third mortgage to purchase his original principle private residence. Due to the economic downturn he was unable to sustain the mortgage repayments on the three properties.

We negotiated a PIA with the banks, proposing to sell two of the properties. The residual balance owed to the banks of €61,590, after the sale of the properties was written off and he is in a 6 year PIA to pay off what he can afford to the banks from his disposable income.