Thinking of handing keys back to mortgage company

auditek923

i am only working part time and my wife is too. she is about to go on maternity leave.
we have a house since 2005. i foolishly remortged in 2007 with start mortgages as a short term solution to our finances.mortgage only in my name. we had planned to sell up and build on a site owned by my father in law. but the housing bubble soon burst and our house went into negative equity.
we can no longer afford our 1200 per month mortgage. we are getting into serious debt now as we cant afford our monthly bills plus mortgage.
what happens if we hand back our house to start mortgages.
we would rent a property somewhere else
urgent advice needed .

D3PO

if you hand them back they will see the property.

If you owe 250k for example and they sell for 150k then you will still owe them 100k plus interest until that is paid off.

Handing the keys back doesnt obsolve you from the debt Im afraid. Bankruptcy law in this country is in serious need of reform

Paulw

Bottom line - you can't. You can't just hand back your house. You are still liable for the full mortgage and interest until it's paid in full.

Go talk to your mortgage company/broker. Only they can help you.

Zamboni

Leave the country.
It is a serious option these days.

D3PO

Zamboni wrote: »

Leave the country.
It is a serious option these days.

you left a bit out

Leave the country and never return if you do return that the debt will still hang over you and you wont be able to return here.

Doesnt sound like a serious option to me.

Zamboni

D3PO wrote: »

you left a bit out

Leave the country and never return if you do return that the debt will still hang over you and you wont be able to return here.

Doesnt sound like a serious option to me.

Aye very true. The Never Return bit is certainly the main negative factor but the truth is some people are in absolute dire straits.
I personally would have no qualms about never returning to this country if the need arose.


On a sombre note, it is also a better option than this.
http://www.boards.ie/vbulletin/showthread.php?t=2055860630

Paulw

Zamboni wrote: »

Aye very true. The Never Return bit is certainly the main negative factor but the truth is some people are in absolute dire straits.
I personally would have no qualms about never returning to this country if the need arose.

But, where do you get the funds to start a new life?? Where do you move to?

The best (and most logical) thing to do is just talk to your bank/mortgage broker, and try to work out some form of an arrangement. The bank don't want your property, they want the money.

lucy2010

Firstly can you go interest only with your bank ? Is this maybe an option. Secondly contact your local CWO. If you are working PT and your wife is going on maternity leave you will need sufficient means to survive & they may be able to help. Its tough but remember you have a little baby on the way & it will need a roof to live under so maybe handing the keys back would not be a good idea.

Good luck & hopefully you will get something sorted soon.

auditek923

Zamboni wrote: »

Aye very true. The Never Return bit is certainly the main negative factor but the truth is some people are in absolute dire straits.
I personally would have no qualms about never returning to this country if the need arose.


On a sombre note, it is also a better option than this.
http://www.boards.ie/vbulletin/showthread.php?t=2055860630

well suicide is not a way out for me and i dont want to leave the country.

Zamboni

auditek923 wrote: »

well suicide is not a way out for me and i dont want to leave the country.

Good to hear.
Have you spoken to your mortgage provider yet?

auditek923

Zamboni wrote: »

Good to hear.
Have you spoken to your mortgage provider yet?

they are a shower of thieves. they are start mortgages. sub prime lenders. they charging us almost 1200 per month on a 40 year mortgage . house now valued at 150k

gurramok

Go to Mabs straight away, they will give you good advice.

Remember, you will not always be like this, you will eventually end up getting a full time job even if it takes a year, its just a matter of getting through this bad phase which is temporary.

Ye might be entitled to Mortgage Interest supplement. If not, ask yourself is it worthwhile to be still working part time? (some might see this rightly as sponging off the taxpayer but thats how it works out there for some when they add up the maths)

Paulw

auditek923 wrote: »

they are a shower of thieves. they are start mortgages. sub prime lenders. they charging us almost 1200 per month on a 40 year mortgage . house now valued at 150k

And yet, you still you took out a mortgage with them. Hmmm. Who do you blame, besides yourself?

You need professional advice from a qualified financial adviser. Simple as that. Talk to Start Mortgages, a mortgage broker and MABS.

auditek923

Paulw wrote: »

And yet, you still you took out a mortgage with them. Hmmm. Who do you blame, besides yourself?

You need professional advice from a qualified financial adviser. Simple as that. Talk to Start Mortgages, a mortgage broker and MABS.

at the time we needed the money and rushed into it as we saw it as a quick fix. yes in hindsight it was the biggest mistake of our lives. we had only planned to pay off debts with remortgage money and biuld a new house but the property boom ended and with it so did our dream.

Paulw

The fact is, you HAVE a mortgage with them, so you need to talk to them.

Go get some professional financial advice, talk to mabs, and see what you can do.

therecklessone

No amount of posting on boards will change the fact that you need to heed this:

Paulw wrote: »

The fact is, you HAVE a mortgage with them, so you need to talk to them.

Go get some professional financial advice, talk to mabs, and see what you can do.

D3PO

auditek923 wrote: »

they are a shower of thieves. they are start mortgages. sub prime lenders. they charging us almost 1200 per month on a 40 year mortgage . house now valued at 150k

Im sorry but that is your fault. You accepted the terms including the interest rate. Nobody forced you to do it. Man up take responsibility and realise you made a bad choice.

fontanalis

Subprime, bloody hell. Just talk to the lender asap.

Idbatterim

1. first thing Id do is try and renegotiate terms with the bank, maybe go on interest only for a while. Failing that could you rent out your house and rent somewhere cheaper? Would this poster apply for rent allowance?

billybigunz

auditek923 wrote: »

i am only working part time and my wife is too. she is about to go on maternity leave.
we have a house since 2005. i foolishly remortged in 2007 with start mortgages as a short term solution to our finances.mortgage only in my name. we had planned to sell up and build on a site owned by my father in law. but the housing bubble soon burst and our house went into negative equity.
we can no longer afford our 1200 per month mortgage. we are getting into serious debt now as we cant afford our monthly bills plus mortgage.
what happens if we hand back our house to start mortgages.
we would rent a property somewhere else
urgent advice needed .

Nice one, we will pick up the bill no bother. Thanks for that.

Idbatterim

D3PO wrote

"Handing the keys back doesnt obsolve you from the debt Im afraid. Bankruptcy law in this country is in serious need of reform"

Do you honestly think people should just be able to walk away from their mistakes? Hopefully people will now wake up to reality and we will never enter such a situation again, people fearing they will never get on the "property ladder" buying crap houses and apartments in the middle of nowehere etc...

billybigunz

Idbatterim wrote: »

D3PO wrote

"Handing the keys back doesnt obsolve you from the debt Im afraid. Bankruptcy law in this country is in serious need of reform"

Do you honestly think people should just be able to walk away from their mistakes? Hopefully people will now wake up to reality and we will never enter such a situation again, people fearing they will never get on the "property ladder" buying crap houses and apartments in the middle of nowehere etc...

Well it would have made the banks a little more careful in their lending. Wouldn't be near the disaster we have now.

staker

OP don't hand the keys back in, go interest only for a while and at least give your new baby a roof over his head.
You'd regret it for the rest of your life.

D3PO

Idbatterim wrote: »

D3PO wrote

Do you honestly think people should just be able to walk away from their mistakes? Hopefully people will now wake up to reality and we will never enter such a situation again, people fearing they will never get on the "property ladder" buying crap houses and apartments in the middle of nowehere etc...

do you think the banks taking no pain is a deterent to wreckless lending ? i didnt say they should hoave no responsibility bit you can have bankruptsy reform that is balanced

Idbatterim

I totally disagree with the one set of rules for the banks and the one for the rest of us. But the final decision to draw down credit is made by the individual and he or she is ultimately responsible! Its often asked where the buck stops, but in this case its quite clear.

iguana

Idbatterim wrote: »

I totally disagree with the one set of rules for the banks and the one for the rest of us. But the final decision to draw down credit is made by the individual and he or she is ultimately responsible! Its often asked where the buck stops, but in this case its quite clear.

While I agree with you there is one thing you are missing. In countries where it's easier to default things tend to bottom out much faster. House prices have been falling for 4 years now and are still nowhere near as low as they will ultimately fall. It could take another 4 years or more before houses start selling for their actual value. We are headed for a long, protracted fall in both house prices and the economy. If things happened faster it would only be a good thing.

the_syco

auditek923 wrote: »

they are a shower of thieves. they are start mortgages. sub prime lenders. they charging us almost 1200 per month on a 40 year mortgage . house now valued at 150k

Sub prime lenders give mortgages to those who can't afford mortgages from "proper" banks, and charge you a fee for the privilege for getting a mortgage with them.

Talk to MABS about your situation. Running away will make this problem a lot worse.

ei.sdraob

Stop paying it

after about a year and many threatening mails later

you'll end-up in front of judge


explain that you can not pay it for your life (Assuming your finances don't improve by then), theres no way in hell would a judge kick out a family out of their PPR

the judges are well aware of the personal bankruptcy laws being flawed, and as has shown in recent cases would judge fairly

ricman

It sounds like ,you needed money ,you borrowed 200k thru a remortgage.You could try and go to another bank, and get the mortgage switched over to them, ie reduce the interest rate.But if you owned the house ,did you spend all the money already.Talk to mabs, but if you are working part time,it would be easier to sell the house for 150, then at least you are only paying interest on 100k.Frankly it would be easier to go to the city council and get on the housing list.You need to talk to the community welfare officer.
IF you dont sell up ,at some point the bank will take you to court and you,ll end up paying ,interest plus legal fees.
Prices are going down, the longer you stay there, the lower the selling price will be.I,D prefer to sell voluntarily, then be forced to sell up in 9 months.
The cwo will provide accomodation for you ,after you sell the house,if you simply cannot afford to buy another house, ie its not easy to get a mortgage, when you have 100k debt.
Prices will be falling for the next 5 years.
AS far as i can see theres no personal bankruptcy laws in ireland, its not like a company ,which can be closed down.
The best you can do,is sell up, reduce the dept ,WHILE your house is still worth 150k.
Subprime companys deal only with people who find it hard to borrow from a normal bank, and
they charge much higher interest rates.

ei.sdraob

oh and make sure the solicitors dont tie your name to this boards account of yours!

as that would show intent and wont look good if it ever comes to court

D3PO

ricman wrote: »

It sounds like ,you needed money ,you borrowed 200k thru a remortgage.You could try and go to another bank, and get the mortgage switched over to them, ie reduce the interest rate..

what planet are you living on ? Do you seriously think somebody that had to go to a sub prime lender and is defaulting will be given the facility of switiching to another bank.

Banks aren't taking switchers now even those in good credit and with positive LTV's so why in the hell do you think this would be an option ?