Emigrating in negative equity - what to do with outstanding debt?

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loanranger

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My family and I have the option of emigrating to Australia, but like so many other would be Irish emigrants we are in negative equity and we're weighing up the options (if there are any) on what to do with our house here. We would be looking at a permanent move, no going back.

If we sell up at a loss (if we can even find a buyer) we'll still be saddled with the outstanding mortgage. I'm wondering if it would it be possible to defer the remaining repayments for a year or two while we get on our feet in Australia. I'm sure many Irish families are in the same boat, i.e. unable to sell or rent their properties even when they leave.

I heard that during the UK property crash of the 80's, some people in negative equity literally put their house keys in envolopes and popped them through the banks' letter boxes! OK, a bit extreme! But what would be the implications of leaving a debt behind? Even until you're in such a posision to repay it? Is anyone going to come chasing you overseas with a court summons? Would you be internationally blackmarked forever more? Would you be able to set foot in Ireland again? (Not that I'd care about the latter, at this stage.)

I guess the best thing would be to talk to our bank before making any decision, but I'm wondering if anyone else is in the same boat or has any advice?
 
Do you have any family members that could move into your house? even if they paid half the going rate, it could offset some of the payments? I left in 2003, and my brother moved in quickly, gave me time to rent out the house for a few years before selling. I subsidised his rent to fill the mortgage.

More details on your situation may help other posters to give advise. i.e. the amount of the mortgage, what similar units are renting for, or what similar units have recently sold for. how bad is bad?
 
And who will ultimately pay for your unpaid debt? The banks? No, it will end up in the lap of the Irish taxpayer.
 
Go to lender, tell them you are emigrating, don't say where, offer them a deal on neg equity to call it quits, the alternative being, you say you will skip, they will say they will destroy your credit rating, you say OK if they can find you, better to take 1/2 neg pr whatever and call it quits. They will deal.

Do it through a Solicitor if you want.

Nothing in this post should be construed as advising anything illegal - its a possible strategy that will benefit both sides in the current economic climate.
 
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How awful you have to leave through no fault of your own.

I knew loads of Irish people in England during the 90's who simply handed back the keys and headed for Hollyhead never again to be bothered by the British Banks.

The very best of luck to you in your new life. Don't worry about leaving a house behind which is steeped in negative equity, it is not your fault that the country has gone belly up. The banks will eventually sell it or maybe they will hand it over to NAMA!

BON VOYAGE:)
 
I already know of 2 families that have skipped. They have gone far far away, I happen to know where they went but the banks here will never find them. They simply posted back the keys with a short note telling them where to go. I got a text the other day from one chap who tells me things are going well in their new adopted country.

I have no sympathy for the banks. Fair play to the OP, enjoy your new life.
 
I doubt anyone is that silly. There are always more places to move to apart from Ireland in any event. Think South America.
 
loanranger said:
I'm wondering if anyone else is in the same boat or has any advice?
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I would hand back the keys

The bank will not allow a sale to go through if the proceeds won't clear the mortgage, so dont waste your time.

Best of luck on your travels. Dont waste your life paying for the greed of the Irish rotten corrupt gangster "elite".
 
Robin Banks said:
Best of luck on your travels. Dont waste your life paying for the greed of the Irish rotten corrupt gangster "elite".
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Or, don't waste your life paying back what you voluntarily borrowed, thus saddling me and many of the other posters on this thread with your debt.
 
The government are the ones saddling taxpayers with the debts of others. They have no mandate whatsoever for the course of action they have embarked on.

Make sure you thank fianna fail at the next election callybags.
 
I think that this question has been answered.

I have had to delete 8 posts for off-topic and bad language.

Can posters please answer the question which is asked without going into long rants off-topic.

Brendan
 
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