BOSI Neg Equity negotiation....

W

Wicklow23

Registered User
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14
I hope I have done this post correctly-
I posted a thread (see quoted below) a few months back, and well there have been some developments and I was hoping for advice on best option to choose, below are the standard financial details.
In short after long and difficult negotiations with BOSI they have refused to accept a cash sale offer ( which we have at present) on the property at 50% of the loan value with a lump sum as well.
Their preferred option is for us to voluntarily surrender the property allowing them to sell it at a much lower value and then for me to accept the undischarged and unsecured debt that is left....
the only other option is to continue the status quo of paying the capital and interest on this property that no longer suits our needs and is only 50% owned by me ad infinatum with no hope of getting credit in the future
There must be some way out???
All and any advice would be welcomed- this is such a difficult situation and I know I am not alone- but it is so frustrating to be stuck with no obvious solution- all we want is to be able to move on and to do so in a way that least affects our future borrowing potential and my career
thanks



Wicklow23 said:
Personal and income details
Income self: I am currently PAYE but am on the brink of signing a partnership
Income history: I have been working continuously since graduation in 2005
Income partner/spouse: part time civil servant and student
Income history:
number of children: nil
Amount of Mortgage Interest Supplement received:nil
Home loan
Lender: BOSI
Amount outstanding: 495k
Value of home: 225k
Interest rate: 1.75 tracker rate
Monthly repayment 1500
Amount in arrears 1256

Summary of discussions and agreements with the bank- To date in 4 years they have agreed to one interest only payment I am currently awaiting their decision on my most recent interest only application which I sent on the 1/8/12- they lost forms etc.
I am currently in negotiations with them re the unsustainable nature of the loan



Other loans and creditors - delete those which don't apply to you

Credit Union e.g. Loan of €14000 against shares of €8000
Student Loan -5000

Other savings and investments
Nil

How important is retaining the family home to you? Not at all- we want out asap
Which of the following best describes your situation?

I don't care about keeping the family home.
The sooner I can get rid of it the better, it is stiffling our ability to progress in life and I resent it.

Any other relevant information
This property was bought with an ex partner who has since left the country and is not contributin to this mortgage, I have been left with it and all the negative equity, It is not a suitable home for our needs and we want to be able to move out and on with our lives. However due to the fact that BOSI have exited the market we are in an impossible situation where no other bank will look at us due to the extent of negative equity.
Surely jointly and severely liable cannot be considered fair in these exceptional times where negative equity is at extraordinary levels??
Any help advice would greatly be appreciated
What is your preferred realistic outcome?
For example: "I will never be in a position to repay the home loan. So I want to sell the house and deal with the shortfall"
Click to expand...
 
Hi Wicklow.
They are not doing deals on family homes like they are on commercial loan facilities.
However, there are ways of getting this done but it will take a certain leap of faith.
I will PM you my details
 
You could do a few things, say 'yes, I'll opt for the shortfall' but then once the place is sold look to enter a DSA which allows you to deal with any unsecured debt. This would at least put a cap on the amount of time you might spend in a work out plan.
 
hey commercial, would it be possible for you to send me on your details. I have a few similar questions. Thanks.
 
The big question I have I relation to a voluntary surrender is the future implications- I am only starting out in life and do not want to destroy my ability to borrow in the future. How badly would a voluntary surrender affect this
 
Wicklow23 said:
The big question I have I relation to a voluntary surrender is the future implications- I am only starting out in life and do not want to destroy my ability to borrow in the future. How badly would a voluntary surrender affect this
Click to expand...
You now have a significant negative equity problem. There are going to be implications for you in respect of future borrowings, unless you pay your loan back in full. However, these implications will not last forever. Realistically if I were you I would fully focus on getting a deal that will facilitate as easy an exit as possible from your current debt burden. Now is not the time to concern yourself with ability to borrow in the future.
 
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