Case study Temporary default in order to purchase another property

What does he intend doing with the 2nd property? The risk really is for the person in whose name that house is in terms of property tax, CGT, means against any SW payment or indeed payment like child benefit down the line.
 
Thanks to the recession, we were in contact with a family member abroad who would love to buy a cheap holiday home in Ireland. He plans to resume payments next year so no harm done in my opinion.
 
mark12 said:
Thanks to the recession, we were in contact with a family member abroad who would love to buy a cheap holiday home in Ireland. He plans to resume payments next year so no harm done in my opinion.
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There are tax consequences to this chicanery
 
mark12 said:
Brendan, my cousin is not a fraudster, .
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He most certainly is a fraudster.

He is not paying his debts as they fall due, although he has the capacity to do so.

He is telling the lender that he cannot pay when he can.

He is putting a property in someone else's name although he will be the beneficial owner of it.
 
Excuse me Brendan, Fraud means doing something ilegal, is this ilegal?
He is only protecting the future of his little ones even though it looks like it will not be in Ireland, sorry if in the midst of all the crisis we have learnt a thing or two about business, would it be better for the little ones to go on the housing list should they have no future here? He is in fact protecting the taxpayer
 
mark12 said:
He is only protecting the future of his little ones even though it looks like it will not be in Ireland, sorry if in the midst of all the crisis we have learnt a thing or two about business, would it be better for the little ones to go on the housing list should they have no future here? He is in fact protecting the taxpayer
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? This makes no sense. How has any of this anything to do with protecting his children? Why would they end up on a housing list?
 
mark12 said:
Brendan, my cousin is not a fraudster, he works hard and i trust his word, he will pay all the arrears, interest and capital on the mortgage, he just needs to save the 40K first.
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Of course he's a frauster! If he was not he would not be putting the property into someone else's name. But that aside, trying to accumulate 40K without leaving a paper trail that an half decent forensic accountant will not find is a tall order, so I fully expect that he will be caught at some point.
 
Hold on Jim, are you a Judge by any chance? What are the charges? he is not even in MARP yet ok?

If taking a mortgage break is a crime why did the banks used to offer mortgage holidays only a few years ago?

He will pay his way, the reason i posted this was to get advice in terms of how could he best do this in a totally legal way leave the morals of it to God.
 
But it would be ok if he purchased a concealed car for a family member right? Forensic Accountants???Your watching too much CSI Jim, Bertie didnt have a bank account and he's not a fraudster, my cousin doesn't either. It's all legal you see, including destroying the economy.
 
mark12 said:
Hold on Jim, are you a Judge by any chance? What are the charges? he is not even in MARP yet ok?

If taking a mortgage break is a crime why did the banks used to offer mortgage holidays only a few years ago?

He will pay his way, the reason i posted this was to get advice in terms of how could he best do this in a totally legal way leave the morals of it to God.
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Like I said, if he is doing nothing wrong, why is there a need to hide the purchase???

There is also a big difference between taking a break from making repayments that has been agreed with the creditor and unilaterally doing so!

No matter how you dress it up, that fact is that he is going to be in breach of contract the minute he fails to meet his repayment schedule and what is he going to do at that point? Tell them he is withholding payment because he is saving up to buy another property? I don't think so....
 
The bank isn't complaining much so why should you?
He just keeps saying he can't pay at the moment, they will wait for him, they know they have no choice, he made up his mind on this, if they move on him he will just cross the water, as many do, and clear the debt.
What do you think is best for you as a taxpayer? Once he resumes payments the bank will forget he ever took a mortgage break and will gladly accept his monthly repayments.
 
If the second house is in someone elses name there is not a lot the bank can do about it.
 
If one of his parents were to be the owner of the new property then they could gift it to him at a date in the future when all is ok with principle residence and avoid CGT.
 
Why does this thread has Highlighted ''CASE STUDY'' beside the thread on the main board?

TBH - it's not anyones business what is he doing with his money. the banks, politicians (certain few), developers, rich families and their relatives were in power for years (and still are), who put peoples of this country in this mess?

Hello?

What he is doing is perfect and I am giving him my blessing for it.
 
g05l said:
TBH - it's not anyones business what is he doing with his money.
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It is when he just isnt bothering to pay back a mortgage he can afford.

Someone has to pick up the tab for the money the bank borrowed so this person could buy his house in the first place and while he isnt paying just because he doesnt want to we are all paying for it. Either the tax payer or everyone on a variable. He may start paying again in a year but in the mean time someone else is picking up the tab

He's manipulating the fact that its not in the interest of the bank to take the house back and evict him.
 
TBH - it's not anyones business what is he doing with his money.
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It's anyone who reads this threads business if they post on a public forum looking for advice
 
And he is giving support and credence to all those who claim that nothing more should be done for mortgage holders because of the moral hazard.

He is a perfect example of the moral hazard.

Brendan
 
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