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Moving to Norway. How to talk to bank re: Negative Equity

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  • 11-08-2011 8:49pm
    #1
    rorymcgrory
    Registered Users Posts: 267 ✭✭


    Hi there,

    I have being employed by a company in Norway for the past 2 years. I have been travelling back and forth up until now. I now must relocate within the next 12 months to Norway.

    I have 2 mortgages in Ireland. One in Negative Equity if about 60K.
    I will be keeping the one not in Negative equity. If I manage to sell the other I will still owe at least 60K. Can anyone advise on my options?

    Can I pay the remaining 60k over a period of say 10 years?

    Thanks


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    #2
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    Short answer NO.

    Are both mortgages with the same bank?
    How much equity do you have in the other house?
    If you have a lot of equity in the other house, the banks maybe open to re-mortgaging it to cover the NE.

    The banks are unlikely to convert the NE into a unsecured loan if you are moving country.
    Best to go in and talk with them and get the other house on the market now, as it will be worth 10% less within 12 months.


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    #3
    rorymcgrory
    Registered Users Posts: 267 ✭✭rorymcgrory


    Senna wrote: »
    Short answer NO.

    Are both mortgages with the same bank?
    How much equity do you have in the other house?
    If you have a lot of equity in the other house, the banks maybe open to re-mortgaging it to cover the NE.

    The banks are unlikely to convert the NE into a unsecured loan if you are moving country.
    Best to go in and talk with them and get the other house on the market now, as it will be worth 10% less within 12 months.


    Probably very little equity on the other. I was afriad you would say that. My thinking is I'm moving anyway so they will have to work something out with me.

    Alternatively if they cause problems with me moving I ll have no job hence no mortgage repayments


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    #4
    Bigcheeze
    Closed Accounts Posts: 2,858 ✭✭✭Bigcheeze


    Go and talk to them (manager level) about it. You should prepare for the meeting with the numbers documented to talk through with them. I wouldn't be so quick to write off the chances of a term loan, particularly if you've a good record with the bank. In this scenario you're actually paying down a lot of the debt owed to the bank and their net exposure is no worse than before. Also, you will still be maintaining strong economic links to Ireland as you will still have one property here and a mortgage with the bank.


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    #5
    Dades
    Moderators, Society & Culture Moderators Posts: 25,558 Mod ✭✭✭✭Dades


    Also, get your negative equity property on the market ASAP.


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    #6
    Penguino
    Registered Users Posts: 162 ✭✭Penguino


    Have you considered renting your negative equity property to meet/assist the mortgage payments


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    #7
    DrPhilG
    Registered Users Posts: 12,328 ✭✭✭✭DrPhilG


    Senna wrote: »
    If you have a lot of equity in the other house, the banks maybe open to re-mortgaging it to cover the NE.

    Not according to my mortgage advisor. I was considering buying a property outright, then mortgaging it to release equity to pay off another but he says not a hope. Lenders aren't releasing equity from owned property for anything other than home improvements to that property.

    If he's wrong that would be great!


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    #8
    rorymcgrory
    Registered Users Posts: 267 ✭✭rorymcgrory


    rorymcgrory wrote: »
    Hi there,

    I have being employed by a company in Norway for the past 2 years. I have been travelling back and forth up until now. I now must relocate within the next 12 months to Norway.

    I have 2 mortgages in Ireland. One in Negative Equity if about 60K.
    I will be keeping the one not in Negative equity. If I manage to sell the other I will still owe at least 60K. Can anyone advise on my options?

    Can I pay the remaining 60k over a period of say 10 years?

    Thanks


    Had appointment with mortgage advisor with AIB today. You were correct I cannot sell the house as I am in negative Equity. Simple as.....

    Dont know what to do now. I have never missed a mortgage repayment in the 8 years I own property. I suggested could I take the negative equity amount over 10 years but that was turned down too.

    I'm leaving within 12 months, if I don't I'll not have a cent to pay either mortgage as I'll be unemployed. Should I send a letter to the bank saying either work with me and I'll repay all the loan or don't and you can take the house back.

    I really dont like the idea of the latter but there is no way I can risk losing my job due to the bank tying me down.

    Has anyone ever heard of this type of situation? Should I seek legal advice?


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