Default on mortgage

The_Conductor

Well done!
Keep us appraised of how things progress.

Bullseye1

I hope all goes well OP.

Hootanany

So do I good luck.

ShadowHearth

Best of luck op. Let us know how you will get on.

Hairyass

Well, the buyer is still hanging in there.

The bank did a "drive by" valuation of the house. Anyone heard of this before?????

The bank wont release the deeds 'till they tie me down on a new contract.

Their first offer was to turn the balance into a term loan at 5.5% variable for ten years. This was working out at about 280 euros less than my current full mortgage payment.This was working out with 20K minimum profit for the bank. I rejected this completely.

It took them a week to come up with a new offer:
The balance of the mortgage over the remainder of the term at 5.5% variable.
This is working out just shy of double of the amount owed.
From what I cam make out there is little or no debt relief for anyone with a job

You guys will love this, they wanted to charge me forty euro release fee for the deeds.

But I have a cunning plan..................

D3PO

Hairyass wrote: »

Well, the buyer is still hanging in there.

The bank did a "drive by" valuation of the house. Anyone heard of this before?????

The bank wont release the deeds 'till they tie me down on a new contract.

Their first offer was to turn the balance into a term loan at 5.5% variable for ten years. This was working out at about 280 euros less than my current full mortgage payment.This was working out with 20K minimum profit for the bank. I rejected this completely.

It took them a week to come up with a new offer:
The balance of the mortgage over the remainder of the term at 5.5% variable.
This is working out just shy of double of the amount owed.
From what I cam make out there is little or no debt relief for anyone with a job

You guys will love this, they wanted to charge me forty euro release fee for the deeds.

But I have a cunning plan..................

Just to put some balance on this. The offer on the term loan isnt that bad. You get to reduce your outgoings by €280 a month, you no longer have a depreciating asset.

You are also getting a rate as good as any 10 year fixed mortgage rate, significantly cheaper than a normal loan rate. The banks as much as I dislike them for their goings on over the past 10 years cant give you a free lunch.

grab the offer and clear over the 10 years and get the weight off your shoulders.

djmcr

Drive by valuation are not unusual. Valuer just confirms existence of house and value based on area of same

Hairyass

Well, I'm out. I handed the keys over to the auctioneer last week. Had a moment when driving away with my car and trailer full of the last of my stuff, thinking, what the hell have I just done??
Got my final bills from the auctioneer and solicitor this morning. They took their money before the bank got any, so they are clear.
I miss calculated how much I owe the bank slightly, I owe them close on 60k.
I decided to go with the lower payments for the moment to get my feet under me again and will over pay the loan when I can afford to. I'm sure the bank wont like it, but I don't care.

I would like to thank everyone for their advice and opinions.

P.S. My solicitor on all this mess was Joan H. Devine in Strokestown, Co. Roscommon. I would recommend her to anyone in a similar situation.

D3PO

nice to see you got out and the stress is now gone. nice to see a bank taking a pragmatic approach here that ultimately benefits you both.

If this were to become a common place solution in the system the whole housing market would find its level very quickly. Its a pity either more people or more banks won't take this example and apply it to similar situations.

thaks for keeppng us update on this thread and the best of luck.

ABajaninCork

Oh - I'm so glad you got it sorted.

Onwards and upwards as they say. I wish you the very best of luck! Be kind to yourself now. You deserve it!

mattjack

Well done.

Snakeblood

Hairyass wrote: »

Well, I'm out. I handed the keys over to the auctioneer last week. Had a moment when driving away with my car and trailer full of the last of my stuff, thinking, what the hell have I just done??
Got my final bills from the auctioneer and solicitor this morning. They took their money before the bank got any, so they are clear.
I miss calculated how much I owe the bank slightly, I owe them close on 60k.
I decided to go with the lower payments for the moment to get my feet under me again and will over pay the loan when I can afford to. I'm sure the bank wont like it, but I don't care.

I would like to thank everyone for their advice and opinions.

P.S. My solicitor on all this mess was Joan H. Devine in Strokestown, Co. Roscommon. I would recommend her to anyone in a similar situation.

Well done, glad you're out of there.

Idbatterim

silly you Op, you should have chosen a career in welfare sponging, that's in hindsight though! no debts, no worries, no sacrifices!

http://www.boards.ie/vbulletin/showthread.php?t=2056402471

lomb

If you owed 60k, and had a mortgage of 100 on a 150k house, then how much did you get for it was it 40-50k, that would be a 1/3 of peak, so how come the CSO figures show a drop of around 43% outside Dublin?
Im sure your glad your out but I dont think you got a good deal on it.

OMD

lomb wrote: »

If you owed 60k, and had a mortgage of 100 on a 150k house, then how much did you get for it was it 40-50k, that would be a 1/3 of peak, so how come the CSO figures show a drop of around 43% outside Dublin?
Im sure your glad your out but I dont think you got a good deal on it.

CSO figures refer to averages. Some properties will have dropped 60+% some an awful lot less than 43%.