My next door neighbour is from Australia, husband is Irish and they both lost their jobs about 2 years ago. He was a plasterer and she worked for a company that did sourcing for Dell. They used up all their savings to cover the mortgage (variable rate) and after trying unsuccessfully to rent out the house for a reasonable amount, they have decicded to sell and move to Australia as things here are not going well for them.
Anyway the house is in negative equity by about 50k (bought at 250k) and they are pricing accordingly and there has been some interest. The bank have said they will not release the keys until the debt is fully repaid but anecdotal evidence suggests they will turn the remaining amount into a personal loan if pushed. Now she has basically said to me that if they sell and are left with this 50k shortfall that they dont intend to pay it once they get to Australia as they will not be returning bar at christmases. She feels they gave the bank all their personal savings once and do not intend to do it again.
Is this actually possible for them? Surely the bank will chase them to Australia for the 50k? It is a lot of money in my eyes. I have mixed feelings on this as though they should pay the money back I see where they are coming from in that they lost everything trying to pay their way in the hope the work situation would improve, it didn't and now they have an opportunity to start again. But I suppose my main question is are banks willing to go abroad to chase their money?
Anyway the house is in negative equity by about 50k (bought at 250k) and they are pricing accordingly and there has been some interest. The bank have said they will not release the keys until the debt is fully repaid but anecdotal evidence suggests they will turn the remaining amount into a personal loan if pushed. Now she has basically said to me that if they sell and are left with this 50k shortfall that they dont intend to pay it once they get to Australia as they will not be returning bar at christmases. She feels they gave the bank all their personal savings once and do not intend to do it again.
Is this actually possible for them? Surely the bank will chase them to Australia for the 50k? It is a lot of money in my eyes. I have mixed feelings on this as though they should pay the money back I see where they are coming from in that they lost everything trying to pay their way in the hope the work situation would improve, it didn't and now they have an opportunity to start again. But I suppose my main question is are banks willing to go abroad to chase their money?