Income details
9,000 approx , self employed, single
Home loan
Lender: Bank of Scotland
Amount outstanding: 212,000
Value of home: 80,000
Interest rate: SVR
Monthly repayment 860approx
Amount in arrears 4,000
I rent out rooms and pay them 400 per month
In Marp since mid 2011 , both properties are jointly owned and the other person has emigrated, i have no contact with them
Second property - Site
Lender: ulster bank
Amount outstanding:110,000
Value of site: 50,000
Interest rate: 4%
Monthly repayment 480approx
Amount in arrears 4,000
Monthly rent received 00,00
Just want to be free from the banks.
Didn't spot your post until now. Why is the rent on the 'home' so low? Actually I've only good news for you, you're in a hopeless situation financially it would seem to me, so let the banks take both the site and the house ?
You are also playing dicey with revenue on the 'home.' It's not your home, it's an investment property, so you're liable for PRTB, NPPR, and maybe, but unlikely tax on the rent.
Ulster are threatening you with legal action on the site, because you cannot sell it without the other owners consent, so let them take the legal action, but tell them in writing that you will help them in any way whatsoever in relation to this.
What are your discussions with BofS? You're not in limbo, the bank is. By paying them something you are only actually delaying the solution for yourself. Pay them nothing and you'll soon see how long you'll last in limbo.
Why would you want to keep the home? Wouldn't you be better off without it and starting again? Have you had a talk with Mabs to see your options under the new insolvency regime.
Unfortunately your friend is wrong. If you are staying there for 1 or 2 days a month then it is not your principal private residence.Thanks Tommy
Just off the phone with a friend who says that i only have to register with the PRTB if i'm renting out the whole house , not if Im renting out 2 rooms and am there myself sometimes, ???
Forget about the past. You now have a mortgage of €212k on a house worth €80k. House prices will need to treble before you are out of negative equity and you will still owe €212k which you won't be able to pay off.I guess i'm only interested in keeping it because it would be a shame to loose all the interest I've paid in over the years, I'm guessing a lot of the interest would be paid off by now.
You are in a great position and now is the time to exploit it while your income is so low.They have emigrated and the bank is threatening me with legal action.
I have offered a voluntary sale but they need the other persons signature for that and i cant get it.
I guess i'm only interested in keeping it because it would be a shame to loose all the interest I've paid in over the years,
, I guess that's what I've been trying to do but I'm going nowhere with this.
Maybe its time i called into mabs again ?
.
What professional advice will i need ? a solicitor or PIP who deals with debt/bankruptcy?
Should i write a voluntary surrender of both property's ?
Not sure what i should do with the tenants ?
Being that the other co-owner has emigrated , how long will it take before the banks repossess both property's ?
Forget about the past. You now have a mortgage of €212k on a house worth €80k. House prices will need to treble before you are out of negative equity and you will still owe €212k which you won't be able to pay off.
Likewise with the site.
You are in a great position and now is the time to exploit it while your income is so low.
These properties have to be sold and you should seek to have the shortfall written off as quickly as possible.
You will need to pay for professional advice. So you are going to need to build up a fund of around €2,000. You should write to the bank and tell them
Then forget about paying the bank.
- You will be applying for bankruptcy
- You have no contact with your joint owner
- You will cooperate with them in full in their court case to seek possession of the property
- You will need some money to pay the deposit for the rent on the new premises
- You will need the fees for the bankruptcy application
- You will be making no further payments on the mortgage
Build up a fund to help you through the mess
If the bank begins repossession proceedings, write asking them how you can facilitate them.
Show up in court and tell the judge you have no objection and that you will be going bankrupt.
It will be a lot easier to sort out if both properties are sold off and you are left with unsecured debt. In fact, you will probably not need to go bankrupt. You may be able to do a deal with the lenders at that stage on the shortfall.
What would i need the 2K for ? solicitors,courts and PIP's fees ?
Im going to one of the New Beginning seminars this week, wondering if it would be worthwhile paying for their services ?
I've no idea if NB are worth paying. I would be very slow to part with any money unless I knew what I were getting.
To go bankrupt yourself would seem to need about 2K. That's 650 Euro court fee and an ad in the main newspapers and stamping of documents. It might not cost 2K. Apparently you do not need a PIP to go bankrupt.
As Burgess points out you may not need to go bankrupt if the bank agrees. But I think that you need to get it in writing from them that in return for your full cooperation they will write off your debt after 3 years. The great thing about the bankruptcy option, and it's only a new option that we don't have full details on, is that there is finality to it. So if in the future you come into an inheritence, or make good financially it cannot be taken away from you because of what happened in the past.
I would not trust a bank to honour anything that is not in writing.
Where did you hear about not needing a PIP ? .
Read this thread http://www.askaboutmoney.com/showthread.php?t=182550
and listen to the pod cast from the Marian Finucane show of the official assignee.
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