Living abroad - Should I abandon my property?

I really need some advise regarding my property.
I bought a two bedroom flat at the end of 2005. I had to buy with my mother, as my income did not allow me to avail of a mortgage alone. A year later I moved to Australia just as a temporary thing but ended up staying due to the downturn in Ireland.
I have been trying to sell my apartment for over a year now but had no luck. Now it’s worth far less then I paid for it so I can’t afford to sell it. My sister was living there for a few years only paying a small rent which could be counted under the rent a room scheme however she moved out at the end of last year and now I have declared myself to the rent board. The rent I receive does not cover my mortgage which I have subsitute with 300 Euro a month.

Also the Aussie dollar has crashed and I had to take a pay cut so financially after paying sky-high Sydney rents and covering the balance of the Irish mortgage plus tax I am just living hand to mouth. I’m scared that I am going to have to pay the clawback stamp duty plus tax in Australia as well as Ireland, which I totally can’t afford.

Basically I worked for three years in two jobs saving for my deposit and now I have pretty much lost everything. Should I just walk away from the place? What would be the implications if I did? Is there a good tax accountant or a government aid scheme out there who can help.

How are you planning on walking away when your mother is on the mortgage? Does she also own the property?

Your case is unfortunate and complicated by the fact that you aren't here to sort it out?

As far as I know and the way the rules are at the moment, if you walk away from this place, it will sprout some legs and follow you (and your mum if she is still involved). Abandoning houses in this country doesn't really work like it does in the US. You and anyone else who has a stake the property will be pursued for the difference between the amount borrowed and any knock-down sale price secured for it should your lender take possession.

It's time to organise some sort of correspondence with the lender to outline the predicament. The fact that you tell them that you are in financial difficulties does not mean that they instantly move to repossess. It's in their interests to help you keep paying something towards the mortgage, either by restructuring the loan or accepting reduced payments.

If you demonstrate that you're serious about sorting it out, the lender will take you seriously. If you welch out, they'll give up quickly and there'll be a court hearing and you'll lose the apartment as well.

I bought a two bedroom flat at the end of 2005. I had to buy with my mother, as my income did not allow me to avail of a mortgage alone

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When you went to Australia, you should have declared this and paid clawback stamp duty to Revenue.

My sister was living there for a few years only paying a small rent which could be counted under the rent a room scheme however she moved out at the end of last year

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This was incorrect. You have to be living in the property to avail of the rent a room scheme, So assuming you were living in the property from the begining you could not avail of the rent a room scheme from the time you went to Australia.

See here for Revenue guidelines and have a look at
What if Rents are payable to a non-resident landlord?

Also, if you leave your property, the bank will repossess it and sell it for the best price. Any shortfall will be left on your account with interest. As you bought with your mother she could be held liable for the full shortfall. As far as I know there are no government assistence available.

I presume (as you bought as an owner occupier) that you have a 'residential' mortage and are paying interest + capital every month?

If the bank will allow you to move to interest only, it may ease the cash flow difficulties you are experiencing, at least for now.

There is an informal (?) understanding at the moment that banks will give those in diffculty with their mortgage a stay of 12 months before iniating repossession proceedings-whether this is of any use to you or not I cannot say, nor do I know any more detail than I have posted.

In both cases, it would probably be a good idea for you to talk to the bank.

As for your tax issues, you would probably do well to talk to a tax advisor.