Negatequity
Registered User
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- 7
My predicament:
Loan: - ECB Tracker home loan with a foreign owned bank (ie NIB, KBC, Rabo etc but not Ulster, HBOS) for ca 650k. Originally structured as interest only but will switch to principal repayment in the next 6 months.
Secured on: - two Dublin properties currently rented.
Current value: who knows but lets say €450k so ca €200k negative equity.
Borrower: - Not been resident in Ireland for several years. Curently employed in EU continental Europe & no ambition to return to Ireland other than for holiday. No other assets in Ireland.
Problem: - Rental receipts will not cover the loan repayments once the home switches to principal repayment. The properties would need to rise 50% in value in order to wipe out negative equity.
Question: If I consider strategic default & return the keys to the lender, what action would they take? Chase me through continental European courts, sell the claim to a debt collection agency or simply write off the debt?
Loan: - ECB Tracker home loan with a foreign owned bank (ie NIB, KBC, Rabo etc but not Ulster, HBOS) for ca 650k. Originally structured as interest only but will switch to principal repayment in the next 6 months.
Secured on: - two Dublin properties currently rented.
Current value: who knows but lets say €450k so ca €200k negative equity.
Borrower: - Not been resident in Ireland for several years. Curently employed in EU continental Europe & no ambition to return to Ireland other than for holiday. No other assets in Ireland.
Problem: - Rental receipts will not cover the loan repayments once the home switches to principal repayment. The properties would need to rise 50% in value in order to wipe out negative equity.
Question: If I consider strategic default & return the keys to the lender, what action would they take? Chase me through continental European courts, sell the claim to a debt collection agency or simply write off the debt?