Walking away from debt

S

southside100

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Seriously considering walking away from debt. Own an 1 bed apartment that was worth 360k at the height of the boom, still owe circa 315k, current value is 130k. Wife was made redundant from a well paid job and has found a new job but at a fraction of what her previous salary was.

Kid is growing fast and we need to rent a bigger place. Bank will not let me sell and work out a deal to pay off Neg Equity which I would be happy to do. They refuse to let me move with Neg Equity either. If I rent the place out I wouldn't even get 50% of my monthly mortgage repayments so this is not an option.

New Govt have done absolutely nothing to help struggling homeowners and seem to be spending more time jet setting around europe and the US than looking at the state this country is in.

We're running out of time and options and are seriously considering emigrating and posting the keys back to the bank. This is not something we want to do but feel we are not being offered any help from the Banks or Govt.

If anyone has any information on going to the UK to file for bankruptcy could you please PM me and offer some advice.
 
forgot to mention we're on Interest Only repayments at the moment which is all we can afford for the foreseeable future. Its not a case of, we can afford the full repayments but just don't want to pay. We're just about scraping by every month which is not how I want to live the next 30 years of my life!
 
Walking Away ....

Unfortunately what you say makes sense ...given the figures involved , the government and bank need to wake up to this fact quick. People will have no choice but to walk away.
 
If I were in your situation it would be hard not to contemplate this when the flip side is being swamped in dept for the next 10-20 years or so. Life is too short.
 
Am in a nearly identical situation to yourself, on interest only, scraping by. What is the worst that could happen lol!? Could it be worse than spending the next 30 years doing what we're doing?!
 
I can't see how we ( Ireland ) are not going to have thousands of cases of default in situtations like you guys face , what else are these people to do ..." the morally right thing and struggle for the next 30 years " only a fool would take that option like colm 5 said Life is simple to short ...

The Government and Banks need to allow for this by introducing generation mortgages allowing people to live a decent quality of life while the property market recovers over the next 10/15/20/25/30 etc years ...afterall surely your houses /appartment will have recover some if not all of their value by the time your will is being read out ...
 
Im in the same boat , I would suggest getting professional advise here.But i cant find anybody working in this area day in day out ....who can give practical advise ..

Please pass on any details if you find such a person.
 
"We're running out of time and options and are seriously considering emigrating and posting the keys back to the bank. This is not something we want to do but feel we are not being offered any help from the Banks or Govt."

Post the keys... sign the papers.. bank sells house and chases you for the shortfall from sale. They may not be able to find you now however the more people that walk away the better the bank will get at finding people and getting their money.

I don't think walking away is the right option but can't really offer a better one.

I presume you have spoken to the bank about repaying less than the interest only amount... another waiting game... leaves you hoping the banks/gov will do something to help however this is a big gamble.
 
iscritto said:
Post the keys... sign the papers.. bank sells house and chases you for the shortfall from sale. They may not be able to find you now however the more people that walk away the better the bank will get at finding people and getting their money.
Click to expand...

The interest on the shortfall will also start accumulating.
 
Life IS too short. People were stupid-no doubt about it. But the neg-equity-life-sentence hole people now find themselves in is far too great a punishment .
You are just one of many and what will eventually come down the tracks will make a new approach - both from banks and from govt - unavoidable. Along with the broader European question, the whole thing is an incredible mess
I agree with the notion of extending mortgages indefinitely as suggested above but really don't know how that would play out.
 
http://www.examiner.ie/ireland/group-casts-off-arrears-stigma-158601.html

Why don't the persons in mortgage arrears come together to discuss matters and options etc. as per the woman on the attached extract, which was in the news recently. There is an e-mail in that extract too.

This is not what the banks or the government want.

They will leave people suffer as long as possible without any help, but with a click of a finger will bail out the developers and the banks who caused this mess in the first place.

There are many persons made redundant too through no fault of their own, the banks, the government and the developers made the mistakes.

Like I have said it before anyone in trouble with their mortgages would have been better off borrowing €100m+
 
Exactly the same situation

300k mortgage

30 years left

Variable rate almost over 6%

1450 month

Property worth 100k

Love the house, its our family home but even at that had to move away from the city and now spending a fortune on petrol to get to work. Wife is the same. We work hard and have no disposable income.

Dont want to have to emigrate but worked out paying 1450 *360 (30 years) over 500k is depressing on a property worth so little.

Have to say also my broker gave me the worst deal he could. Threw us on a fixed rate mortgage when a tracker wud have suited us obviously. During fixed rate the rates kept dropping. After coming off fixed rate he then advised going to variable when the bank offered a tracker. Although tracker wanst great at that stage. 3% over ECB. The PTSB 1% hike was painful along with the other .25% hikes. That was 18 motnhs ago and the mortgage has gone from 1079 to 1450 and another rate hike at the end of the year looks possible.

Dont know where to go but i dont want to have this debt with me for 30 years. I would be quite happy paying 1200 a month for the duration but the cost now combined with the worth of the property is just ridiclous
 
Random 2011 you have to think though what might the house be worth in 30/40 years. Property prices goes in cycles. Would you save the 500k in the 30 yrs? Probably not.
What about looking to go interest only for a period or interest only with some capital payments up to €1200.
You had a responsibility too when borrowing so you cannot put all the blame on the banks/broker. Responsibility lies with all.
 
Hi all, I'm in the same situation: Mortgage 288K, worth 130k 2 bed apartment that I own with my ex. Lovely. I'm seriously getting depressed thinking I am stuck with this place for the next 20 years. I even thought about taking the hit for the shortfall just so I don't have the apartment. I would love to post the keys back, but I live in hope the government will introduce a scheme to help us. We are the forgotten generation: labelled as being 'greedy and stuipid'. Yes we made mistakes, but please let us live our lives. How do we publiscise our genuine plight?
 
yes, I read that story this morning, great news for that couple but I can see the Banks coming out all guns blazing in response to this tomorrow morning saying they will not be giving any Debt Write Down's.

The Govt need to do something to force them to do it, seems as though they own all the banks now.
 
Questioning your judgement, fine. Trying to live your life with the massive millstone of massive negative equity and the horrors that can go with it is a different matter. And killing oneslef to pay up when those who had a much bigger hand in the mess live happily in their mansions with their fat pensions, just to satisfy the moral outrage of those who got lucky enough to be born a bit earlier and had it easier, well forget that.
 
people make mistakes in life, unfortunately those that caught up in this mortgage mess have to suffer the consequences for 30-35 years, you only get 7 for murder!

I'm really surprised at the negativity towards people who are genuinely struggling out there trying to make ends meet. I'm barely scraping by each month, its a horrible way to live. Try to live my life for a few months and see if you still feel the same way.

Banks were stress tested and are now overcapitalised to allow for defaults in the coming years, so why not start using it!!
 
southside100 said:
Banks were stress tested and are now overcapitalised to allow for defaults in the coming years, so why not start using it!!
Click to expand...

Sorry to burst your bubble, but the banks are anything but over capitalised, they are in fact just about keeping their heads above water and will be required to raise further capital in the next few years, as will most European banks.

Jim.
 
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