Hopelessly insolvent and looking for advice on two choices to consider

ellenb

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I have posted previously re my family's situation and to quote one reply we are "hopelessly insolvent". We have two choices to consider now and was looking for opinion please.

Our house is located in "back of beyond". Only reasonable job prospects are in Dublin a 200 mile round trip. Tried commute and staying on friends couches but wage just didnt come close. We are unable to pay our bills let alone service any debts, 198K mortgage and 30K credit union loan.

1. Agent for bank has suggested he will look for a 3 year interest only payment for us. I asked implications long term and he wouldnt really get into it as nothing has been confirmed as yet. However it sounded like an extension might be an option, this would being my hubby up to age 70 to 75 and me 63 to 68. This will be paid for by MIS. Not sure if we will be eligible but say even if we are, we feel very uncomfortable about this possible "deal" and circumstances are unlikely to change in that time period or if we did get work it would be low wage 20k perhaps and MIS would stop, what happens then? We'd be afraid to take work. But you never know.... However the main problem is that we can't afford all the bills, so even if we were happy to stay put, the house is big and we can't cut things any further. House falling into disrepair as we can't afford to fix problems.

2. We have had house for sale a while and have an offer in of 110K which would leave a shortfall of approx 90k. House prices only going one way here at the moment, in section 23 land where some houses are going for silly money.

Ultimately we want out at this stage. We want to move to Dublin and find work and possibly for me to go back to education to retrain. I have a hearing disability and impossible to do job I had previously.

Rental income wouldn't cover us to rent elsewhere so that's out.

We are both unemployed, have been in marp for 3 years and going through this nightmare for almost 5 years. We can't pay all the bills, stressed and worried. Bank have said they won't issue letter of unsustainability either but they did say they would let us sell.

we'd be able to stay with family in Dublin for short term until we get sorted.

We have not yet advised of offer as still to apply for MIS and only happened a few days ago. Agent is applying for a 3 month moratorium until we get MIS then hopes to apply for 3 yr interest only deal.

Other reasons for wanting to move but we want to make a decision based on above only.

So, what would you do?
 
Ultimately we want out at this stage. We want to move to Dublin and find work and possibly for me to go back to education to retrain

stressed and worried.

Bank did say they would let us sell.

Agent is applying for a 3 month moratorium until we get MIS then hopes to apply for 3 yr interest only deal.


So, what would you do?

What I would do is not apply for MIS, not pay anything to the bank and force their hand. This is based on your full circumstances on this and the other threads.

Tell them in writing that you cannot afford the mortgage and that you have an offer on it of x and what do they want you to do. You have to get them to force you out via repossession if they won't allow you to sell and won't give you an unsustainability letter. Until YOU take charge and do something they will continue with their kicking the can nonsense.

As an aside someone should be doing something about banks refusing to give the unsustainability letter in circumstances where it's quite clear the customer is in an unsustainable position. Looks to me like the bank that has decided never to give these letters is using it as a weapon against customers.
 
Why are you paying an unsustainable mortgage to the determent of your household bills. You are going to lose your house one way or the other.

Its different if you are borderline you should then scrimp and save to keep making the payments so eventually you own your beloved home. But you dont want the house and you will never own it
 
We haven't been able to pay anything in over 6 months and for 3 months before that we only paid a small amount. And we had a 3 month moratorium before that. We still can't pay all the bills even not paying the mortgage. Our heating system needs repairing/replacing and we just don't have it. We have 2 small kids at home and the situation is completely untenable. We haven't taxed the car since before Jan. it's a nightmare. Yet bank still think not so??? I just don't understand.
 
Very simple the bank don't care they only want there money back, If you would only go live in a bush to help pay back your debts they would be happier still.

But you have to look after your family first. So at the moment you can live there rent free mortgage free until they take action. I know nothing about social welfare but when the house is taken it is your safety net
 
. We still can't pay all the bills even not paying the mortgage. Our heating system needs repairing/replacing and we just don't have it. We have 2 small kids at home and the situation is completely untenable. We haven't taxed the car since before Jan. it's a nightmare. Yet bank still think not so??? I just don't understand.

You're not getting it about the bank. They don't care about your bills, they just want you to agree to pay them even if it means you have no heat/car etc. What you need to do is pay things like repairs and car tax first and what is left over the bank gets. Not the other way around.
 
We aren't paying anything to either the mortgage company or credit union and STILL unable to afford bills and repairs. The bank agent has applied for a further 3 month moratorium and then hopes to seek a 3 yr interest only deal based on MIS paying it. Even if we get MIS, we are still unable to afford to live in the house.
Advice to date is stay put and hope property price increases in next year or so and then sell up (based on getting enough to pay off mortgage) or sell up now and work out shortfall.
Think we will sit tight for a little while and see what bank offers and hope we get a decent offer.
 
The bank has to agree to a sale. Your position is not sustainable. I would tell the bank you are willing to forego the house and are moving out as you cannot afford it. You talk about moving but do you have somewhere to go and the money to make the move ?
 
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