Case study Should I sell my home in huge arrears or wait for new legislation?

T

Triton

Guest
My husband and I have been unemployed for two years and have been getting MIS which covers around 60% of the interest, so the mortgage balance is increasing.

We have a SVR mortgage with EBS of €400,000 and we have an offer to buy the house for €200,000.

EBS will allow us sell the house but won't agree to write off the shortfall. We have no prospect at all of paying the shortfall. What can they do about it? But we don't want it hanging over our heads either.

We live in Galway and it's quite possible that we may have to move to get work. We have two pre-school children. Although we would prefer to stay in Galway, we will move if we get jobs somewhere else.

We are not under any pressure from EBS to sell although they accept that the mortgage is unsustainable.

If we stay in the house, what is the likelihood that the new legislation would force the EBS to write off some of the mortgage?

If we sell the house, what is the likelihood that the new legilsation would force the EBS to write off the €200,000 shortfall?
 
If you sell the property the remaining 200k becomes unsecured. There will be very little the bank can do, as they wont be able to get blood out of a stone. How much are the arrears for?

I am in a similar situation myself but the bank will not allow me sell. You are lucky you have that option.
 
thanks for replies - most likely employment destination is dublin - with likely rent of €1200 per month (3 bed semi in south dublin close to extended family) - childcare costs will be higher there than in Galway - arrears been re-capitalised
 
Hi Triton,

Have they agreed to your arrears been capitalised? I cannot get the bank to recapitalise mine. How large are the arrears?

I heard on the radio this morning about the IMF suggesting that there should be a mortgage write down, if the economy were to move on, a persons' home would be valued at today's sales rates and their mortgage would represent the real value of today. Unfortunately I cannot find a link to support this but I believe the Irish Daily Mail had it on their front page today.
 
Re; Eamon Gillmore on Mortgage arrears yesterday

Speaking to his party's delegates, Mr Gilmore also said the Government would be "including in a new Personal Insolvency Law radical new measures to strengthen the hands of householders when dealing with their banks".

so does this mean householders in voluntary sale situations should wait until these measures are enacted this Summer?
 
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