Walk away from US property. Credit Rating & other implications etc in Ireland and US?

N

ninjasurfer1

Guest
Hi, I have a property in Florida which has more than halved in valuesince i bought it 3 years ago.

It looks as if i may be losing my job here or being put on short weeks (not sure yet) and was wondering what the implications of handing back the keys is for here in Ireland?

I don't have a property here yet but was hoping to buy within the next year or so(depending on the job situation).

Does anyone know what implications there are for my Irish credit rating, etc, if i walk away from the property in the states?

Can the banks (and the Florida state - for property taxes) come after me over here?

Thanks for any info you may have.
 
Re: Walking away from US property.Any implications for here?

Hi Paddybloggit,
Thanks for the link, but that thread does not contain any useful info as the OP's question about impacts on their irish credit rating was not answered.(which is what i also am looking for answers on).
I'm new to askaboutmoney and have searched the various threads (using jingle,florida,USA, etc, as search criteria) but i have still not found any info.

Thanks.
 
Re: Walking away from US property.Any implications for here?

In my time on AAM I've never heard of anyone who purchased property in Florida and handed back the keys being pursued in Ireland for their mortgage arrears.

If you've lost your job, are on social welfare payments and have no assets then I do believe no American mortgager is going to pursue you but I am open to correction on this.
 
Re: Walking away from US property.Any implications for here?

Bronte said:
In my time on AAM I've never heard of anyone who purchased property in Florida and handed back the keys being pursued in Ireland for their mortgage arears. If you've lost your job, are on social welfare payments and have no assets then I do believe no American mortgager is going to pursue you but I am open to correction on this.
Click to expand...

That does not mean that it will not happen in the future. It is so much better to keep your affairs clean if you can.
If you have a judgement against you in the States you will never be able to travel there in the future. Later in life one of your kids may live there and you may want to visit to see the grandchildren and will not be able to.
 
Re: Walking away from US property.Any implications for here?

woods said:
If you have a judgement against you in the States you will never be able to travel there in the future.
Click to expand...

Can you explain this. Is that because there will be a court order against you for non-payment? As it is not a criminal conviction, why would you be stopped travelling?

I could understand if the court issued a warrant for your arrest due to non-payment of a debt.
 
Re: Walking away from US property.Any implications for here?

Thanks for the reply. I have a job but will probably have to take a 10%+ pay cut shortly which will make it tough to keep paying.
In addition, if i lose my job, i will be unable to meet my payments anyway. in this case, any additional funds i put into the florida property would be gone anyway.

I don't have a house here yet, but if i were to buy one in the next few years, could the american banks come after the house here, even though i would have bought it after handing back the keys over there?

Does anyone know of a good lawyer who would be able to explain the legal ins and outs of this? (I presume it would have to be an american qualified lawyer?).

Thanks for any info.
 
Re: Walking away from US property.Any implications for here?

Check the terms of your US mortgage. Some US mortgages appear to allow the owner to walk away from the debt because they are non-recourse. If, however, you took a mortgage out with an Irish bank then you will not be able to do this.
 
Re: Walking away from US property.Any implications for here?

Ive deleted some useful but ultimately off topic posts on how to get the most out of AAM.

Ive changed the question somewhat to more accurately reflect the question.


aj
moderator
 
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