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Selling negative equity house - am I entitled to rent allowance?

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  • 14-01-2013 9:22am
    #1
    mark313
    Registered Users Posts: 11 ✭


    im planning on selling my house, it will leave me with a 100,000 minimum hangover to pay off which i plan to pay off. im the only one working supporting my fiancee and daughter. i earn 28,000 a year after tax does anyone know if i would qualify for rent allowance or how does it work. i have agreed with the bank to sell the house to help take a chunk off the mortgage. thanks


Comments

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    #2
    cee_jay
    Registered Users Posts: 7,920 ✭✭✭cee_jay


    Because you are working, you won't qualify for rent allowance.


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    #3
    hollster2
    Closed Accounts Posts: 1,199 ✭✭✭hollster2


    you have to be doing 30hrs or under a week to qualify


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    #4
    Meeoow
    Registered Users Posts: 626 ✭✭✭Meeoow


    Don't think you'll qualify for RA with that income.
    Sorry to hear that you have to sell your house, can you not come to a better arrangement with the bank? What a shame that you have to sell your family home, to rent a house.
    Shame on the banks and the government.
    I wish you good luck, whatever the outcome.


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    #5
    hollster2
    Closed Accounts Posts: 1,199 ✭✭✭hollster2


    Meeoow wrote: »
    Don't think you'll qualify for RA with that income.
    Sorry to hear that you have to sell your house, can you not come to a better arrangement with the bank? What a shame that you have to sell your family home, to rent a house.
    Shame on the banks and the government.
    I wish you good luck, whatever the outcome.


    exactly its disgusting you having to do that and not be entitled to anything best of luck from me too!


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    #6
    mark313
    Registered Users Posts: 11 ✭mark313


    thanks for the comments and support. Bank are refusing to allow me to sell my home as they say its too far in negative equity so will have to see what happens. thanks again


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    #7
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    hollster2 wrote: »
    exactly its disgusting you having to do that and not be entitled to anything best of luck from me too!

    why exactly is it disgusting that somebody on 28k a year isn't entitled to RA ?

    Dont get me wrong if the OP is struggling financially (which Im not even sure is the case i get the feeling he just wants rid rather than is actually in big trouble financially)

    I have sympathy for them but I dont see how somebody on 28k a year AFTER TAX couldn't rent and payback their outstanding neg equity of 100k over time.

    Nobody is entitled to handouts and to be fair the OP isnt asking for one just checking his entitlements,


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    #8
    professore
    Closed Accounts Posts: 5,857 ✭✭✭professore


    D3PO wrote: »
    Nobody is entitled to handouts

    Not true. Politicians, retiring public servants and bankers (massive pension handouts), criminals with hundreds of convictions (free legal aid) are entitled to handouts in this country. Only law abiding hard working citizens are not entitled to anything and have to pay for everything.

    Best of luck OP.


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    #9
    mark313
    Registered Users Posts: 11 ✭mark313


    just so everyone knows i have offerd the bank a payment scheme i can afford and they refused this as well as an application for the mortgage to rent scheme. i never asked for my wages to be cut so im trying to play ball with the bank by paying what i can afford but they are not intrested


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    #10
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    professore wrote: »
    Not true. Politicians, retiring public servants and bankers (massive pension handouts), criminals with hundreds of convictions (free legal aid) are entitled to handouts in this country. Only law abiding hard working citizens are not entitled to anything and have to pay for everything.

    Best of luck OP.


    Whilst I agree that said pensions are a joke for politicians they are contracted payments not handouts.

    Look crap happens but we cant give everybody who cant pay their mortgage a handout. Life is tough nobody has to take out a mortgage and they do so at their own peril


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    #11
    Meeoow
    Registered Users Posts: 626 ✭✭✭Meeoow


    I'm not saying it's disgusting that he is not entitled to rent allowance, in fact I would be outraged if someone on that wage were.
    I am disgusted that the chap has to consider selling his family home, where he and his partner and daughter reside.
    I am disgusted that the bank have refused your offer OP, I think that they have to come to an arrangement with you if you make them some kind of payment plan offer.
    You should try MABS, they might be able to negotiate with the bank.
    What do the bank expect of you?
    They won't let you sell, they won't accept your payment plan. Are they trying to evict you?
    It sounds to me like they are being unreasonable and acting illegally and trying to bully you.


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    #12
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Meeoow wrote: »
    I'm not saying it's disgusting that he is not entitled to rent allowance, in fact I would be outraged if someone on that wage were.
    I am disgusted that the chap has to consider selling his family home, where he and his partner and daughter reside.
    I am disgusted that the bank have refused your offer OP, I think that they have to come to an arrangement with you if you make them some kind of payment plan offer.
    You should try MABS, they might be able to negotiate with the bank.
    What do the bank expect of you?
    They won't let you sell, they won't accept your payment plan. Are they trying to evict you?
    It sounds to me like they are being unreasonable and acting illegally and trying to bully you.


    that makes more sense. It looked like you were saying it was disgusting he couldnt get RA :eek:


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    #13
    Kristopherus
    Registered Users Posts: 11,907 ✭✭✭✭Kristopherus


    The OP has 2 threads going. He will not qualify for rent allowance. From the info he has given in this thread, what he should now do is pay the bank what he has already proposed. If they don't accept ,he should open a savings account in the bank and make sure he indicates to them that this money will be used to pay off the mortgage. If the bank pursue him further and take legal action for repossession, there is'nt a judge in the country who would grant them repossession when he sees that the mortgagee is/has paid what he could afford. As I see it its a win/win for both parties. The only thing that could scupper things is this new Insolvency Act. But he would need to check out the risks there.


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    #14
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    I Think the average industrial wage in eire,is 35k before tax.
    I Doubt if the insolvency act will be of any use to someone on that wage.


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    #15
    Victor
    Registered Users Posts: 78,404 ✭✭✭✭Victor


    professore wrote: »
    Not true. Politicians, retiring public servants and bankers (massive pension handouts), criminals with hundreds of convictions (free legal aid) are entitled to handouts in this country. Only law abiding hard working citizens are not entitled to anything and have to pay for everything.

    Best of luck OP.
    On-topic, constructive posts only please. Those points are for another thread in another forum.

    Moderator


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    #16
    Jarren
    Closed Accounts Posts: 4,692 ✭✭✭Jarren


    mark313 wrote: »
    im planning on selling my house, it will leave me with a 100,000 minimum hangover to pay off which i plan to pay off. im the only one working supporting my fiancee and daughter. i earn 28,000 a year after tax does anyone know if i would qualify for rent allowance or how does it work. i have agreed with the bank to sell the house to help take a chunk off the mortgage. thanks


    Employment and Rent Supplement
    You will not qualify for Rent Supplement if you are in full-time employment (30 hours or more a week). (In the case of couples, if one of a couple is in full time employment, both are excluded from claiming Rent Supplement).

    Since June 2007, if you have been accepted as being in need of accommodation under the Rental Accommodation Scheme by your local authority and you have been unemployed or not in full-time employment for at least 12 months before you start work you may be able to keep your Rent Supplement. You may also be entitled to retain Rent Supplement if you have been participating in a Community Employment Scheme or getting Back to Work Allowance or Back to Work Enterprise Allowance immediately before you start work.

    However, you will be reassessed for Rent Supplement and some of your additional income including some of your income from employment will be taken into account. As a result of the reassessment you may or may not continue to qualify for Rent Supplement. If you do qualify for Rent Supplement you may get a different rate of Supplement.

    Income taken into account for Rent Supplement
    Net income from employment (this is gross income less PRSI and reasonable travel expenses.

    You can call CIC to clarify


    0761 07 4000



    Good Luck man


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    #17
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    mark313 wrote: »
    just so everyone knows i have offerd the bank a payment scheme i can afford and they refused this as well as an application for the mortgage to rent scheme. i never asked for my wages to be cut so im trying to play ball with the bank by paying what i can afford but they are not intrested
    Have you already been in MARP with them? If not, they must talk to you under it, and propose realistic proposals.

    If you have already exhausted MARP, pay what you can afford, just make sure it is covering the interest portion of the loan. It is likely to be less than what you will pay in rental for a house.

    If the interest is bein paid, the bank won't move against you.


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