If I Hand Back The Keys of My Home I Will Lose My Job

Teaandcoffee

Looking for some insight please: -

I have been considering handing back the keys of my home. The property is in 100k of negative equity and prices in the same area seem to be falling further. I am unable to meet the interest on my mortgage each month, which is approximately €950.00. I can only pay €700.00 of which I continue to pay on a monthly basis.

I also have an investment property that is currently paying for itself. The property is in Donegal.

I've been thinking of moving to Donegal when the current tenents move out but unfortunatly would lose my job as I am currently living in Dublin.

I have tried selling my main residence but cannot attract any buyers and the same goes for the property in Donegal.

I am in a complete pickle and don't know what to do next.

A) Move to Donegal and go on the Dole. (This thought is depressing)
Stay in Dublin and stop paying my mortgage until they turf me out on the street.
C) Keep paying the €700.00 per month.

Thanks in advance.

RoverZT

Keep paying the 700.

Why can't you pay 950?

Your still working and other property is doing fine.

It doesn't look too bad.

Negative equity is meaningless unless you want to sell, my car is in negative equity I will keep it and get value from it, that's what a house should be for, not a get rich quick scheme.

chris85

Forget about the Donegal property, that is paying for itself. If you move there and live there you will need to generate income to pay the mortgage on that one. So same problem, different county, no job.

Also "handing back the keys" aint that simple you will still be on the hook for the negative equity.

Are you working full time? if so what exactly is happening at present that the mortgage cant be met? This is a genuine question as its the first thing the bank will ask.

Also have you been in touch with your lender about your situation.

MadsL

Can you not rent a room for €300+ a month? Or rent the house out and pay 700 rent elsewhere?

Teaandcoffee

Thanks a million for all your replies.

I've recently moved jobs. New job pays significantly less. The bank are well aware of my situation.

I take home €300 per week. The surplus €500 is goes towards, food, bills and credit card debt.

I have tried renting a room but still no joy. They haven't tried to repossess the property yet, is it something they will do shortly if I cannot meet full interest?

chris85

Teaandcoffee wrote: »

Thanks a million for all your replies.

I've recently moved jobs. New job pays significantly less. The bank are well aware of my situation.

I take home €300 per week. The surplus €500 is goes towards, food, bills and credit card debt.

I have tried renting a room but still no joy. They haven't tried to repossess the property yet, is it something they will do shortly if I cannot meet full interest?

Repossessing is the last resort to be honest. The bank will work with you to try get through this period and hope in a year or two down the line will be able to get back on track.

Have you been to MABS and see if they can assist in budgeting and possibly put a financial plan together to reduce payments further.

www.mabs.ie

MadsL

I take it you have already cut up those credit cards and frozen the interest payable and agreed payments with the bank? If not - do this now.

Is your credit card debt with the same bank. If so - get them to restructure your entire debt.

eyescreamcone

Do not give up your job!!!
Meet with the lender - some lenders are part of a scheme where they will let you stay in the house if you can meet 66% of the interest.
Also - get proper advice

Do not give up your job!!!

eyescreamcone

And at the end of the day if you lose the house fuk it!
It isn't worth much anyway.
Rent a place you can afford and have an extra pint at the weekend.
Don't worry it's all small sh1t

The banks fear that attitude the most because they do not want houses they can't sell

Unfortunately, handing back the keys and walking away (jingle mail as it is known in the US) isn't an option in Ireland. If you do it, the bank will pursue you for the remainder of the debt after the house is sold.

I would highly recommend staying in your job though, there's little else out there.

StillWaters

Teaandcoffee wrote: »

A) Move to Donegal and go on the Dole. (This thought is depressing)
Stay in Dublin and stop paying my mortgage until they turf me out on the street.
C) Keep paying the €700.00 per month.

Thanks in advance.

A is not a goer. How will you pay the mortgage, you will not get mortgage interest supplement as you have 2 properties, after your JobSeekers Benefit runs out you will not get any dole as you have 2 houses.
B the problem is they could put a judgement on both houses.
C is the only thing you can do really, I presume this is with the bank's agreement.

chris85

eyescreamcone wrote: »

And at the end of the day if you lose the house fuk it!
It isn't worth much anyway.
Rent a place you can afford and have an extra pint at the weekend.
Don't worry it's all small sh1t

The banks fear that attitude the most because they do not want houses they can't sell

yeah good advice. still on the hook for the negative equity.

eyescreamcone

If you can't pay all the interest the bank WILL come to some arrangement.
They do not want your house.

If they do eventually take your house and you end up owing the neg equity amount - so what?
You will never end up paying it
Never ever
Bad credit rating tho but that's just paperwork

dearg lady

StillWaters wrote: »

A is not a goer. How will you pay the mortgage, you will not get mortgage interest supplement as you have 2 properties, after your JobSeekers Benefit runs out you will not get any dole as you have 2 houses.

I'm not sure this is right, surely the means testing would take account of the massive debt also?

filmbuffboy

handing back the keys does not absolve you of your debts OP

Teaandcoffee

Thanks everyone.

I obviously don't want to leave the house but I cannot forsee the bank continuing to take the €700. I'm dealing with ACC and they are not the most easy to deal with.

I have cancelled the credit card and the payments are now reschedueled.

Is it possible they may have already put a judgement on the Donegal property without me knowing?

I really don't want to dump my reasponsibilities but the pressure just gets to me at times.

Teaandcoffee

StillWaters wrote: »

after your JobSeekers Benefit runs out you will not get any dole as you have 2 houses.

I didn't know that. There's not a hope in me getting a sale for either property.

chris85

Teaandcoffee wrote: »

Thanks everyone.

I obviously don't want to leave the house but I cannot forsee the bank continuing to take the €700. I'm dealing with ACC and they are not the most easy to deal with.

I have cancelled the credit card and the payments are now reschedueled.

Is it possible they may have already put a judgement on the Donegal property without me knowing?

I really don't want to dump my reasponsibilities but the pressure just gets to me at times.

They cant put a judgment on the property until they have obtained a judgment against yourself first. You would need to be served a summons for this and notice would be given for any further proceedings (such as obtaining a judgment mortgage) and you have a right to defend the matter, should you wish.

The bank need to engage with you properly. There is a code of conduct around arrears so if you are trying your best they wont get near your property for repossesion. If they are not make a complaint to them about it.

I would advise going to see MABS to get some budgeting advice and do up a financial statement to aid negotiations with the bank to further lower payments.

I know you dont want to dump your responsibility but handing back the keys will still leave you responsible for the shortfall on the equity side of things. So may be best if you can try sort it out while remaining in the property.

What line of work you in? Is there chances of new job or promotion down the line?