What age are they?
Are they financially well off?can they carry this debt comfortably?
Is the property in a good area within the M50?
Can they pay off this debt or will cap/interest repayments cripple them?
Need more detail.
Are they just throwing good money after bad. Do you just sell it but where do you get the difference. What do you do in this situation?
They dont need a lecture. What is the point in just existing to repay a mortgage on a house, doing what the government should have done when they had the money, housing families who cant afford homes.Hi Jam
They have a mortgage of let's say €350k on a house worth €200k. That is a problem, but it depends on their other wealth. If they have equity in their home of €150k, then they are solvent.
That is the risk people took with property investment. It was not a one way bet.
This is not an issue of throwing good money after bad. They owe €350k and they have to repay it. They may as well start now. It will slowly reduce the negative equity on the property.
Should they sell the property? The lender will only allow them sell it if they have a plan to deal with the shortfall.
If it's a cheap tracker, they may at some stage be able to do a deal and get a reduction in the mortgage if they transfer it elsewhere e.g. onto their home.
Yes, agree as well. Very sad to see our guru Mr BB adopt such a hardline pro-bank attitude with poor people in debt . This "serves them right" attitude is very disappointing.
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