G
Why not default and let the bank take care of things? Nobody is going to punish you in any way, and I doubt that any bank could get a court to make a single mother of children with no assets pay the outstanding amount (i.e. difference between what you owe and value of property).
So sorry to say all that but paying so much every month seems crazy. However, i'm only basing my opinion on hat you have said and perhaps there are other factors I don't know.
I bought an investment property in 2006 as I owned no home of my own and it seemed like a good idea at the time. But since then my husband and I have divorced (he has his own debt probs) and I've been lumped with this property and I also rent a home for myself and the kids.
The repayments are about to hit €1,200 in September and the PTSB won't talk until I default which I don't want to do. I only make €450 in rent and my income won't support all these outgoings. I tried to change my DD to a fixed SO that I can afford but it can't be done according to my bank. I've phoned and written to the PTSB but no joy.
September is looming and the only thing I can do is cancel the DD and pay by cheque the €500 I can afford. It's a mess and I am pretty scared. I got the mortgage through a broker that is not defunct. PTSB restructuring dept told me that going to a branch or getting a solicitor involved will not make any difference.
I'm on a tracker and they have said that if I come off the tracker I can remain on interest only for 2 more years at the higher rate, which will involve circa €650 per month repayments. I don't know what to do! I could take this offer and try to sell the property which has a mortgage of €220k and is in a vg seaside location. Any help would be much appreciated. Gina
What is Moonfish?
John -I too apologise for coming across a bit grumpy. Everyone is so damn frustrated nowadays at things that we tend to be a bit more jumpy than normal.
Your situation is tough and I sincerely wish you all the best.
It's an INVESTMENT property, not a home. It needs to be examined in that light.
Sell it.
- You can't afford the ongoing costs (mortgage).
- These ongoing costs are going to increase: new residential charge of €200, added to the NPPR charge which will almost certainly rise; possible interest rate increases.
- There is unlikely to be significant capital appreciation in the near future; there may be further capital losses (based on current property market trends). You clearly don't have the current resources to sit it out until (if ever) prices rise to bubble levels again, and in the meantime it is costing you more and more money.
At least that will stop your situation getting worse at a rapid rate (accumulating unpaid interest on large mortgage). Even if the sale price falls short of the mortgage, the amount outstanding will be significantly less than what you currently owe.
Then make an arrangement with your bank to pay down the outstanding amount (if any) over an extended period if necessary.
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