I have exactly the same question as the "I HAVE DEFAULTED ON…

1. I haven't seen or been able to locate the question about the mortgage in default and living in Australia. However, from your point of view, the two important points are, firstly, that even after a sale of the property on which the mortgage was secured, the borrower still remains liable for any arrears of the mortgage which remain outstanding after the sale of the property. In this regard, Irish mortgage law is very different to US mortgage law, where you can just hand back the keys of a property to the mortgage bank and end your liability under the mortgage.

2. The second point is that you can only remain liable for unpaid surplus on a mortgage for six years after the sale of the property, unless you have in those six years, either made further payments to the arrears or acknowledged that the debt remains owing. Essentially, a payment towards the arrears or an acknowledgement of the debt restarts the six year time limit in which any debt can be recovered.

3. In your question, you don't explicitly state whether the property subject to the mortgage has been sold or not. If the property has not been sold, then it still remains available to pay off any arrears on the mortgage. As Irish property prices have risen dramatically since 2011 during the last eight years, you will find your situation with the mortgage is radically different since you first defaulted on the mortgage.

4. Be aware that there is a twelve year time limit for debt secured by a mortgage. So, even though you defaulted eight years ago, then if the property has not been sold, the debt will have continued to increase, subject only the the rule that interest payments can only be recovered by the bank for up to six years prior to the bank deciding to sue you.

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