Over €400K in negative equity/debt. Worried sick!

Hi Trooper. Like the others say don't worry too much about things. I'm in a slightly similar financial circumstances but not quite as deep.
My new accountant suggested the other day that I should think about personal insolvency to wipe my debts and start again.
But I'd rather work things through, which I intend to do.
I have to do some firefighting every so often but that goes with the territory.
You are not alone.
 
Thank you Joe90, I did have it in but it got wiped, as I said I'm only getting used to posting.

Investment 1

Value 135k
O/s 163k
Rate Tracker 1.5%
Arrears 3k
Rental income Nil at present
Mortgage 220 Interest only

Investment 2
Value 160k
O/s 330k
Rate Tracker 1.9%
Arrears 12k
Rental income 1000pm
Mortgage 560 Interest only

Investment 3
Value 60K
O/s 220k
Rate Tracker 1.9%
Arrears 40K
Rental income 520pm
Mortgage 380pm Interest only

As I said in my last post I don't really care about the investment properties. I would just like to have a life. Although I do accept I bought these properties and have responsibility for them but at present things are just not adding up.
 
bring a little clarity it might be better to summarise the situation,

|PPR|Inv1|Inv2|Inv3|Total
O/s bal |220k|163k|330k|220k|933k
Monthly Repay |1,000|220|560|380|2,160

Income |5000|0|1,000|520|6,520
 
Joe_90 said:
bring a little clarity it might be better to summarise the situation,

|PPR|Inv1|Inv2|Inv3|Total
O/s bal |220k|163k|330k|220k|933k
Monthly Repay |1,000|220|560|380|2,160

Income | |0|1,000|520|1,520
Click to expand...


Thank you Joe 90, not sure where you got the 5k income on my ppr. All 3 investments are on interest only with about 18 years left on each. My PPR had 12 years left but bank increased this to 18 too and reduced the monthly repayment from 1400 to 1000. Hope this clarifies the matter. Don't know how much int + cap would be on the investments. I am hoping the bank will do some deal, maybe selling the inv with €40k arrears and then I might be able to deal with the other 2. What do you think?
 
Sorry, been offline for a while. thanks for all the advice. Ive decided to put the house up for sale again and I have been told by my solicitor that this time they should accept the offer as the Personal Insolvency bill will be in play by the time its sold. So, my ideal situation is sell the house, making mortgage shortfall unsecured along with my other unsecured debts, enter PIA and repay over 6 years. In the meantime I will rent, and in an ideal world I would find a house that would let me rent to buy so that when Im out of the PIA and my credit history is eventually repaired I would have the option of buying said house from owner. (I understand this is a very long shot )
@Ciarank, I have considered the transferring shares into my Mothers name but I was afraid this would be deemed fraudulent? Has anyone else any thoughts on this?
 
There is nothing fraudulent about your mother setting up a company and appointing you as a director of that company to run it. It's just like starting a new business.

Transferring assets to a third party so that your creditors can't get at them is totally fraudulent!
 
Thanks Negotiator, so I could be a non shareholding director, take minimum drawings, and keep retaining profits until my PIA is up, then have my Mother transfer shares to me? If so, do you know the tax implications on such a transfer from Mother to Son?
 
I don't know the exact tax implications but there are a number of ways you could acquire the shares.

She could lend you some money to buy the shares at fair market value and you could pay her back over time. Or she could gift you the shares if they're under a certain value. It's important however to get the company valued professionally at the time so no one can dispute it.

Bear in mind of course that it's entirely your mother's decision whether she would like to sell the shares to you or gift them etc.
 
Trooper said:
In the meantime I will rent, and in an ideal world I would find a house that would let me rent to buy so that when Im out of the PIA and my credit history is eventually repaired I would have the option of buying said house from owner. (I understand this is a very long shot )
Click to expand...

Well it's good to hear that you have a plan. In relation to future borrowings and the PIA system. Maybe your bank will do an arrangement with you that keeps your 'name' out of the PIA system. After all it's not completely necessary to go through the costs of this process if the bank agrees (in writing) . In any case even if you go into the PIA and it means your credit rating is shot I believe that eventually banks are going to have to allow lending to people like you despite bad credit ratings as it's the only logical way they will do some future business.

Hope everything works out for you in your dealings with the bank etc.
 
CCland said:
As I said in my last post I don't really care about the investment properties. I would just like to have a life. Although I do accept I bought these properties and have responsibility for them but at present things are just not adding up.
Click to expand...

Welcome to AAM Ccland, it would have been better if you had posted a new thread as it makes it very confusing.

Some questions

2 of the rentals are earning more rent than mortgage so why are there arrears?

Why is the first investment without rent?

On an income of 83K I also don't understand how you are in arrears on your home, particularly when the mortgages is only 1K monthly. What are your major monthly outgoings?

Could you post a new thread and copy and paste the details and clarify a bit further your situation.
 
Thanks Bronte, another reason of going through the PIA is there is my PIP can negotiate other debts, personal loans, credit cards etc. Am I correct in saying that if I, or my solicitor, or MABS negotiate with each creditor, then there is no reason of going into the PIA? What are the advantages of staying out of the PIA system? Is it just avoiding costs? I would assume my credit rating is shot anyway?
 
To be honest Trooper I'm not a bit happy with what is proposed so far with the PIA but won't be fully sure until it's in operation and working for some time whether is is a good thing or not. I think if you can get agreement now in writing then is saves you costs (apparently 5K) and you start the end game faster. This PIA so far is very slow in coming. And the nonsense going on about how much people are going to be allowed have for shoes etc would make you tear your hair out. Far better to negotiate yourself if you can. You can surely also negotiate with your creditors that after x amount of years they will take your name off the bad credit rating etc. I'm assuming that anything can be negotiated, especially if the bank are happy you are playing ball.
 
Update

Hi
Just posting a quick update on my situation. I have got a seller for my house and contracts are being sent to the potential buyer. I am now waiting on the consent from the bank to sell. My solicitor has said I have to complete an up to date SFS and a proposal of how I will deal with the shortfall.
Maybe Im wrong but I thought I saw a sample cover letter/proposal on AAM before? If so, it would be great if someone could show me where I can find it.
I am going to propose a fixed amount towards the debt over a 5 year period however as I can not avail of the DSA yet I am unsure if the bank will agree which will result in not selling the house and putting up the house for sale again at a time when I can avail of the DSA OR should I sell the house anyway, thus un securing the debt and agree to (EG) a fixed amount over the course of the mortgage, then when DSA is in place, apply for that?
Thanks in advance
Trooper
 
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