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New Beginning?? Long term resolution for unwanted house.

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  • 10-05-2013 1:27pm
    #1
    Beardyman
    Closed Accounts Posts: 49 ✭


    Hi all,

    I have a house that I bought with my ex-partner who decided to leave me 6 years ago. Much to my regret (and pressure on her behalf!) I ended up buying her out. Anyways, I now no longer live anywhere near the house and have rented it out. The rent comes nowhere near the interest-only portion of the mortgage (KBC Bank), let alone the life and household insurance. The house costing me hundreds of euro every month and is worth about 53% of the outstanding mortgage.

    I've been lucky enough to meet someone else and we hope to marry next year. She has no debt but once we are married she will end up inheriting my negative equity. Therefore I am determined to sort something out long-term as soon as possible.

    I'm considering trying New Beginning to see if they can get me some kind of deal. If anyone has any experience of using them I'd love to hear it. Or any other experiences or recommendations would be a great help.

    Many thanks for any help or suggestions!
    Tagged:


«1345678

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    #2
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    why should you get a deal ?

    You can pay but don't want to. Tough luck deal with it.


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    #3
    djmcr
    Closed Accounts Posts: 237 ✭✭djmcr


    This is Ireland, no one is responsible for their decisions here


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    #4
    Beardyman
    Closed Accounts Posts: 49 ✭Beardyman


    D3PO wrote: »
    why should you get a deal ?

    You can pay but don't want to. Tough luck deal with it.

    I won't waste my time commenting on this reply as this person has no idea of the acutal difficulty of the situation and is merely speculating without the facts.

    As I said above I'm not concerned for myself. It's going to be my fiancée's problem once we get married for something that happened years before I met her. That is the issue.

    If I was single I'd keep plugging away but but that won't be the case from next year and she'll end up spending her lifetime repaying my problem.


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    #5
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    Your new partner will not inherit your debt. That is yours to deal with regardless of marriage. New Beginnings charge for their services now. Have a look at keepingyourhome.ie for your options.


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    #6
    Beardyman
    Closed Accounts Posts: 49 ✭Beardyman


    StillWaters wrote: »
    Your new partner will not inherit your debt. That is yours to deal with regardless of marriage. New Beginnings charge for their services now. Have a look at keepingyourhome.ie for your options.

    THanks for that, I only came across that website last night.

    If my partner wishes to buy a house once married she is obliged to provide her spouse's financial details as well. I know this is my debt but it will impact her ability if she ever wants to own her own home.


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    #7
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    Would moving back into the house be an option? It might not be ideal, but it cant be any worse than paying rent/mortgage on two properties *(assuming you dont own the place you currently live in).


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    #8
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Beardyman wrote: »
    I won't waste my time commenting on this reply as this person has no idea of the acutal difficulty of the situation and is merely speculating without the facts.

    As I said above I'm not concerned for myself. It's going to be my fiancée's problem once we get married for something that happened years before I met her. That is the issue.

    If I was single I'd keep plugging away but but that won't be the case from next year and she'll end up spending her lifetime repaying my problem.

    and you think your unique why ?

    Guess what I'm in NE my new wife has no debt she too is in the same situation your wife will be. Makes no difference pay your debts, like myself and everybody else, if she doesn't want to get into the situation stay unmarried....


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    #9
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    Beardyman wrote: »
    THanks for that, I only came across that website last night.

    If my partner wishes to buy a house once married she is obliged to provide her spouse's financial details as well. I know this is my debt but it will impact her ability if she ever wants to own her own home.

    then stay unmarried and let her buy a home first before you get married ...


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    #10
    valleyoftheunos
    Closed Accounts Posts: 2,332 ✭✭✭valleyoftheunos


    OP stay away from the likes of Newbeginings, they will do you no favours and happily take your money. If you want genuine advice about your fiance's legal position go see a solicitor.


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    #11
    HardyEustace
    Registered Users Posts: 1,462 ✭✭✭HardyEustace


    StillWaters wrote: »
    Your new partner will not inherit your debt. That is yours to deal with regardless of marriage. New Beginnings charge for their services now. Have a look at keepingyourhome.ie for your options.

    Is it true that the new marriage partner will not inherit your debt?

    I've searched through the citizens advice bureau website and have done a google search but I can't find anything to verify this.


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    #12
    Beardyman
    Closed Accounts Posts: 49 ✭Beardyman


    valleyoftheunos wrote: »
    OP stay away from the likes of Newbeginings, they will do you no favours and happily take your money. If you want genuine advice about your fiance's legal position go see a solicitor.

    I've sent them a couple if mails but if I want to meet anyone there's a minimum charge of €150. I understand they must be inundated with queries but if you've already sent on all of your financial details they must be able to state whether or not they can do anything for you before you start handing over money. I was just wondering if anyone actually had any experience of dealing with them?


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    #13
    Ray Palmer
    Registered Users Posts: 8,369 ✭✭✭Ray Palmer


    HardyEustace wrote: »
    Is it true that the new marriage partner will not inherit your debt?

    I've searched through the citizens advice bureau website and have done a google search but I can't find anything to verify this.


    I find it strange too, if you get married your asset go to joint ownership especially when you go for a divorce. Don't get how it would be different with debts. Then you hear of people moving things into your partners names to keep it away from creditors. It seems to be inconsistent and complex and requires a lawyer.


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    #14
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    HardyEustace wrote: »
    Is it true that the new marriage partner will not inherit your debt?

    I've searched through the citizens advice bureau website and have done a google search but I can't find anything to verify this.

    Yes its true. Debts do not become joint debts on marriage. The partner has no liability to pay this debt. However as OP says, it will need to be disclosed on any future loan or mortgage applicant so will impact in that way.


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    #15
    nino1
    Registered Users Posts: 826 ✭✭✭nino1


    Beardyman wrote: »
    If my partner wishes to buy a house once married she is obliged to provide her spouse's financial details as well. I know this is my debt but it will impact her ability if she ever wants to own her own home.


    If your wife has enough income to buy a house in her own name then the amount of debt you are in is completely irrelevant.

    This is a pretty ridiculous reason to look for a write down!!!


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    #16
    HardyEustace
    Registered Users Posts: 1,462 ✭✭✭HardyEustace


    StillWaters wrote: »
    Yes its true. Debts do not become joint debts on marriage. The partner has no liability to pay this debt. However as OP says, it will need to be disclosed on any future loan or mortgage applicant so will impact in that way.

    And I guess one house becomes the marital residence and you will lose out on associated benefits there, i.e. one mortgage interest relief rather than two


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    #17
    D3PO
    Registered Users Posts: 7,879 ✭✭✭D3PO


    HardyEustace wrote: »
    And I guess one house becomes the marital residence and you will lose out on associated benefits there, i.e. one mortgage interest relief rather than two

    and you can potentially gain by reassignment of tax credits depending on both your earning potential etc. Look this could go on and on about the pros and cons financially of getting married.

    This shouldn't be a consideration for getting married and it sure as hell shouldn't be a reason to think you should look for or be entitled to a writedown on debt.


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    #18
    tommylimerick
    Registered Users Posts: 213 ✭✭tommylimerick


    I think ye will owe this money
    how much you talking about ?50 percent of the value of your house is a nice amount to have to make up . anything greater would be accident terroritory
    I get through ten a day


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    #19
    John Mason
    Hosted Moderators Posts: 10,661 ✭✭✭✭John Mason


    I am in negative equity, i got married last year. my husband had no debt but he loved me so, he was happy to marry me negative equity and all.

    are you sure you are not looking for a way out of the wedding?


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    #20
    Ray Palmer
    Registered Users Posts: 8,369 ✭✭✭Ray Palmer


    John Mason wrote: »
    I am in negative equity, i got married last year. my husband had no debt but he loved me so, he was happy to marry me negative equity and all.

    are you sure you are not looking for a way out of the wedding?


    I think he is being a bit more sensible and trying to get rid of his debt before marrying. One person bankrupt is better than both with the debit shared.

    If he doesn't have to bring the debt in he should try not to. The problem is should he be able to? From what he has said I find it unlikely. It is morally questionable and of his own doing.


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    #21
    tommylimerick
    Registered Users Posts: 213 ✭✭tommylimerick


    free society but we got lumbered with debt too it costs a fair bit to get to the us of a next time pay attention ok ? what age are you can you work till 82. if not pass on the debt to the next generation cause we all know you just can t pay but why should that bother me you took a risk ,not only is greed good but it s legal too ,


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    #22
    whippet
    Registered Users Posts: 7,682 ✭✭✭whippet


    OP ... once you can actually pay off the debt as it is due I don't think anyone like New Beginnings etc will be able to help.

    To even have a bank consider giving a write down / debt relief they will want to see all incomings and outgoings; by your own admission you can actually service the debt on your own .. but by the sounds of it you just don't want to service it.

    By the evidence you have given you won't be a candidate for any sort of debt relief / bankruptcy process should they become available .. these programmes are for people who can't pay not people who would prefer not to pay as it impacts on their lifestyle and ability to get in to more debt.


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    #23
    StillWaters
    Closed Accounts Posts: 1,799 ✭✭✭StillWaters


    I agree with Whippet, the Personal Insolvency legislation probably has nothing in it for you, as you are solvent.
    You could try to negotiate with your bank, there are quiet deals being done, but again if you are servicing the debt and earning an ok wage, it's doubtful they will cut a deal but it's worth a shot.
    The other route of course is the UK but that requires a move there for a year and you will scupper any chances of a joint mortage in the future.


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    #24
    _Kaiser_
    Registered Users Posts: 28,835 ✭✭✭✭_Kaiser_


    I'll say the same thing I always say in these kinds of threads..

    While I sympathise with your situation OP, your debt is not MY responsibility - as me and other taxpayers will ultimately end up carrying the can for it if you did get a "deal".

    You chose to buy a house (regardless of pressure from your ex) and while I'm sorry it hasn't worked out for you, you were the one who signed the papers (and if property had continued to boom I'm sure would have taken the inflated price and run when the time came), so it's your issue to deal with.

    If you're having problems with the payments then negotiate with your lender. That's the only "deal" you'll get as the fact is that that you just don't WANT to deal with it any more which is just tough really.


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    #25
    pwurple
    Closed Accounts Posts: 12,449 ✭✭✭✭pwurple


    You've probably involved the banks already on this, as you've gone interest-only. Did you remortgage to buy the other party out at some point? If it was 5/6 years ago there were still tracker mortgages available. Did you get one?

    Interest rates are the lowest they have been for ages. When the interest rate dropped did you keep the repayment the same and put the rest towards the capital? You can chip away at the capital if you are on a variable or tracker, and basically get rid of the neg equity over time.

    People want everything immediately these days. Property is long term.


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    #26
    strongback
    Registered Users Posts: 466 ✭✭strongback


    "your debt is not MY responsibility"


    Spoken like a man with a small mortgage or none at all. This line is a bit patronising to anyone who bought their first modest starter house during the height of the boom and is carrying around a €500,000 mortgage and a job hanging by a thread. If people keep talking like this Ben Dunne's army will start to march.


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    #27
    Rfrip
    Registered Users Posts: 5,870 ✭✭✭Rfrip


    strongback wrote: »
    Spoken like a man with a small mortgage or none at all. This line is a bit patronising to anyone who bought their first modest starter house during the height of the boom and is carrying around a €500,000 mortgage and a job hanging by a thread. If people keep talking like this Ben Dunne's army will start to march.

    500K mortgage for a first modest starter house......?


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    #28
    murphaph
    Registered Users Posts: 19,018 ✭✭✭✭murphaph


    strongback wrote: »
    Spoken like a man with a small mortgage or none at all. This line is a bit patronising to anyone who bought their first modest starter house during the height of the boom and is carrying around a €500,000 mortgage and a job hanging by a thread. If people keep talking like this Ben Dunne's army will start to march.
    He also said "if the bubble hadn't burst those looking for relief now wouldn't have been offering the taxpayer a slice of their increased equity", which NOBODY will dispute.

    Btw, a "modest starter house" cost half a million at the height of the boom?? I call bullsh!t on that one.

    Edit: Rfrip beat me to it.


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    #29
    _Kaiser_
    Registered Users Posts: 28,835 ✭✭✭✭_Kaiser_


    strongback wrote: »
    Spoken like a man with a small mortgage or none at all. This line is a bit patronising to anyone who bought their first modest starter house during the height of the boom and is carrying around a €500,000 mortgage and a job hanging by a thread. If people keep talking like this Ben Dunne's army will start to march.

    Correction - Spoken like a man who takes responsibility for his actions and the consequences of same - good and bad.

    Besides, the OP makes no mention of his job hanging by a thread etc - he simply doesn't WANT to be dealing with his debt/responsibility.

    I'm sick to death of this mentality that it's someone else's fault that their property investment/lifestyle choice hasn't worked out and that the same someone else should pick up the tab. Certainly their lenders should be forced work with people to come to reasonable/realistic terms that will change depending on circumstances, but that's it.


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    #30
    LowKeyReturn
    Closed Accounts Posts: 934 ✭✭✭LowKeyReturn


    Rfrip wrote: »
    500K mortgage for a first modest starter house......?

    Easily! 1 Bed apartments could go for almost 300K so a three bedroom house in South Dublin easily 500K. What's more the banks would lend on this even if the your income was quite low.


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    #31
    djimi
    Registered Users Posts: 13,237 ✭✭✭✭djimi


    LowKeyReturn wrote: »
    Easily! 1 Bed apartments could go for almost 300K so a three bedroom house in South Dublin easily 500K. What's more the banks would lend on this even if the your income was quite low.

    Its one thing saying that people bought €500k houses; noone is disputing that. Its another thing entirely to describe a €500k house as a "modest starter house"...!


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