He needs to stay unemployed for a year so he can qualify for a grant to return to third level education this autumn.
1 bed apt in Dublin bought at the absolute peak. It's a large development with many more new units since completed and many now being sold by the council under affordable housing.I know property has dropped a lot in value, but 350k to 150k is a lot larger than the typical drop? Are there any reasons for this?
As he is unskilled, he now wants to get some education to be able to do a fulfilling and well paid job. He has 3 months left being unemployed to qualify for back to education allowance. He has managed to make the payments to date by using savings and selling possessions, moving back with parents and renting out the apt.As he has financial responsibilities, he would be better looking for a job to clear his debts than going on the dole for a year.
Op - How is he facing a 200K shortfall? Is the gf not liable for 100k of this?
About her deciding to emigrate - half is still her financial responsibility, not his, and emigrating wont change that.
I dont understand the logic behind waiting for BTEA - why is he not looking for a job and studying in the evenings? Has he done any kind of study in the past 9 months? If not, why not? Even if he gets BTEA - the applications for college may mean that he is too late to apply until next years round of applications. Would he even qualify - there are far more people applying for 3rd level places as a result of the recession.
He clearly cant afford to be in college exclusively for the next few years, its irresponsible of him to choose this option. There is nothing stopping him bringing his education up to a higher level part time and at his own cost (if he got any job) to get him a better job later on.
I think the phrase is 'jointly and severally liable'. In other words, he owes her share if she can't come up with the money and vice versa. Standard on an irish mortgage, I believe.Op - How is he facing a 200K shortfall? Is the gf not liable for 100k of this?
He could sue her for her half but only if he knows where she is and can afford the legal costs of an international lawsuit.About her deciding to emigrate - half is still her financial responsibility, not his, and emigrating wont change that.
He can't get a job or he will be disqualified from BTEA.I dont understand the logic behind waiting for BTEA - why is he not looking for a job and studying in the evenings?
Yes he has been studying.Has he done any kind of study in the past 9 months? If not, why not?
I believe he has a place but I'm not sure.Even if he gets BTEA - the applications for college may mean that he is too late to apply until next years round of applications. Would he even qualify - there are far more people applying for 3rd level places as a result of the recession.
He can't afford to pay his mortgage from the earnings of the kind of minimum wage job he is qualified to perform.He clearly cant afford to be in college exclusively for the next few years, its irresponsible of him to choose this option. There is nothing stopping him bringing his education up to a higher level part time and at his own cost (if he got any job) to get him a better job later on.
If the bank accepted the just the rent for 4 years, the he could start paying back the capital when he finished college from his future high paying job.
I'm not saying it's untrue but I find the 6 year story hard to believe. If this were true wouldn't everyone do it?
If the bank accepted the just the rent for 4 years, the he could start paying back the capital when he finished college from his future high paying job.
While not very ethical, the best solution might be for him to emigrate and ignore the mortgage. If a borrower gives no acknowledgment of a debt for a period of 6 years - i.e. makes no payments and has no contact with the bank - they are statute barred from taking legal action. While in that time they'll have probably repossessed the house at least they can't sue for the shortfall. It would take at least year for legal action to begin so he could continue to collect the rent for quite some time.
The dole pays 196 a week, whereas a fulltime job in spar might only pay 100 euro more.
I am REALLY curious as to what area he is going to be studying in? I update advertisments on a Public Service website, and I can tell you there, are very few jobs advertised regularly, those that are advertised, receive huge volumes of applications, many by people with qualifications above and beyond what's required, a bare graduate has NO hope until they get some kind of experience or do a postgrad being honest!!I don't want to reveal the job but it is state sector & has plenty of openings and starts on 33K, increasing each year up to 47K after 10 yrs (not so high paying!) There are promotion possibilities.
The gf defaulting is worst case and she may continue to pay.
Thanks, I hadn't even considered that. The term is 30yrs already so not much room for reduction. Interest only doesn't pay off any debt and it only makes sense where you expect to have an income rise in future.The gap between the 2 is only 4,400 per annum. Close enough that any bank would be interested in doing deal to either lengthen the term, have a payment break or convert to interest only (1,700p/m suggested repayments are capital + interest).
So the working in Spar option is very realistic.
I wonder how the courts would treat him if he went to college for 4 yrs full time and just paid whatever he could. Short of locking him up, they can't do much to him. Do you get locked up for failing to pay all your mortgage on time?There is a big danger that the Courts may take a view that your friend is capable of coming to a very realistic arrangement with the banks, but is not facing up to his responsibilities.
I don't think he wants to emigrate given that his friends and family are here. Also I suspect that while it may have worked in he past that in a more modern world, people won't be able to hide from their debts in this way.I have heard the advice to emigrate and ignore your debt before. i wonder in this case would it indeed suit the person in this situation as he an no longer afford the property and has no chance of ever being in a position to pay off the loan. I think some solution to this will have to be found as at the moment what is the way out of this situation for the person i.e. how would they ever repay the 200,000 in the worst case scenario?
OK, you'd probably know better than most. We are talking about 4 yrs time of course.I am REALLY curious as to what area he is going to be studying in? I update advertisments on a Public Service website, and I can tell you there, are very few jobs advertised regularly, those that are advertised, receive huge volumes of applications, many by people with qualifications above and beyond what's required, a bare graduate has NO hope until they get some kind of experience or do a postgrad being honest!!
I am wondering what you would do in his place?
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