Hello all,
I am sure you'd love to hear my depressing story of poor finances but I will leave that be and get to the point.
I am dealing with a PIA where essentially what will happen is that I will lose 3 rentals and probably keep my own home. The three rentals are worth maybe €170k in total (yeah!) and the loans are a juicy €380k (bigger yeah!)
The mortgage on my home is €289k, it is a tracker with BOS and we are just paying interest (€700 per month). Originally it was a 25 year loan for €310k so only €20k cleared from it. Ouch.
Anyway reading all the PIA examples etc I am thinking the best I can hope for is to go into this misery PIA for 6 years, live on bread and water and walk to work etc (exagerrating a little) and in the meantime the rentals will be sold, transferred to "unsecured debt" and more or less written off. That will also apply to my credit card and other loans but luckily for me the total of them is only €2k or something.
Once the 6 years is over I will then have the luxury of starting a juicy 35 year mortgage for the house which is now worth €150k with the loan of €289k. That loan over 35 years total a repayment of €600k for a house worth €150k. Great.
As I am on a tracker I can't avail of a lower interest rate.
Because I am 34 they will hamper me with this huge term unlike those in their 50s who will get their lovely write-offs leaving the younger generation carrying the can. That's fair!
Does anyone think I am way off on that prediction? Problem is that is seems rather pointless to me because banking on working continually for the next 35 years to pay off the mortgage is like putting €100 on Stoke to win the league - far fetched.
Is there any other option? I'd love to keep the house but I feel I am being penalised for being within an age bracket where they can increase the term of the loan and that is hard to bear given I have 3 kids and come 10 years time all 3 will be in school and require education funding etc.
Sorry....
You are getting 210k written off with the rentals, 2k on a CC along with other unspecified loans (or is this included in the 2k?) and are being asked to repay the existing mortgage on your home over a longer term.
Had you continued on the PPR mortgage then you would have paid at least 450k over the term.
Forget about the value of your house, many people are in NE. In writing off so much debt you are free to start again, you have your home, the payments are manageable.
If you are employed then at some stage your income will rise, as will house prices.
I think you are looking at the glass half empty in this situation.
As well as looking for a mortgage write -down (when you got 3), you are looking to have your NE wiped out as well.
Instead of looking at 50 somethings who get "lovely" write-offs, maybe take into consideration the other section of the population who didn't go mad, or if they did then who are still paying their mortgages on much reduced earnings - these people, who duly pay each month, are entitled to nothing.
Baby blues...
Fair assessment but critical points missed; when you buy a house over 35 years you usually start of with a loan to value of 90%, like I did. Worse case you are thinking that 10 years down the road if I am sick or something the loan to value could be 75% so if I had to sell I am not crippled with debt.
In this case you would enter into a loan for 35 years with a loan to value of 192% meaning the same instance you'd still owe circa 160% in 10 years time making it seem rather pointless?
Hello all,
I am sure you'd love to hear my depressing story of poor finances but I will leave that be and get to the point.
I am dealing with a PIA where essentially what will happen is that I will lose 3 rentals and probably keep my own home. The three rentals are worth maybe €170k in total (yeah!) and the loans are a juicy €380k (bigger yeah!)
The mortgage on my home is €289k, it is a tracker with BOS and we are just paying interest (€700 per month). Originally it was a 25 year loan for €310k so only €20k cleared from it. Ouch.
Anyway reading all the PIA examples etc I am thinking the best I can hope for is to go into this misery PIA for 6 years, live on bread and water and walk to work etc (exagerrating a little) and in the meantime the rentals will be sold, transferred to "unsecured debt" and more or less written off. That will also apply to my credit card and other loans but luckily for me the total of them is only €2k or something.
Once the 6 years is over I will then have the luxury of starting a juicy 35 year mortgage for the house which is now worth €150k with the loan of €289k. That loan over 35 years total a repayment of €600k for a house worth €150k. Great.
As I am on a tracker I can't avail of a lower interest rate.
Because I am 34 they will hamper me with this huge term unlike those in their 50s who will get their lovely write-offs leaving the younger generation carrying the can. That's fair!
Does anyone think I am way off on that prediction? Problem is that is seems rather pointless to me because banking on working continually for the next 35 years to pay off the mortgage is like putting €100 on Stoke to win the league - far fetched.
Is there any other option? I'd love to keep the house but I feel I am being penalised for being within an age bracket where they can increase the term of the loan and that is hard to bear given I have 3 kids and come 10 years time all 3 will be in school and require education funding etc.
Sorry....
thinking like that means you are still betting on current values just now you see them in a negative light. What is worse is if you keep that up - you will start to hate your own home, better to include it in the PIA than do that.That loan over 35 years total a repayment of €600k for a house worth €150k.
You are getting 210k written off with the rentals, 2k on a CC along with other unspecified loans (or is this included in the 2k?) and are being asked to repay the existing mortgage on your home over a longer term.
Had you continued on the PPR mortgage then you would have paid at least 450k over the term.
Forget about the value of your house, many people are in NE. In writing off so much debt you are free to start again, you have your home, the payments are manageable.
If you are employed then at some stage your income will rise, as will house prices.
I think you are looking at the glass half empty in this situation.
As well as looking for a mortgage write -down (when you got 3), you are looking to have your NE wiped out as well.
Instead of looking at 50 somethings who get "lovely" write-offs, maybe take into consideration the other section of the population who didn't go mad, or if they did then who are still paying their mortgages on much reduced earnings - these people, who duly pay each month, are entitled to nothing.
Actually you are the one that is missing the point - the value of pretty much anything you invest in can go down as well as up! There is no guarantee that your investments will always go up end of story!
I sense this is a moral "lashing" more than advice. Well I am sorry if you think I went mad, well I didn't. Two people have small properties get together and buy a house but keep the other houses = 3 houses. Hardly nuts when you got to consider that those some people don't have the jackpot pension public servants have so have to save for their own (e.g. rental income) and/or needed to buy a larger house (3 bed is all) for their 2 children.
The 4th property was excessive but the debt on that is actually only €45k.
Anyway...
Hi BrokeGuy,
I think you have some fair responses so far, and maybe some not to your liking.
Has the PIP actually negotiated on your behalf yet, with your creditors, or are you presuming this will all happen?
Stoke are currently 2550/1 to win the league,for a good reason.
Some PIPs have claimesd to have been negotiating behind the scenes with creditor in reaching deals already, thats why I'm very curious to know will you receive write-downs as described, and also keep the most expensive house out of three?
Hope things work out for you and you get a second chance in life.
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