Repossessions

riclad wrote: »

i know btl investor ,got 2 apartments, 150k, each,
lives in 1. unit 2 is btl investment, now worth maybe 75k, She,d love to walk away, shes in negative equity on both units,both from the aib.
IF she wanted to walk away, she,d have to declare herself bankrupt, where would she live?
she has a good job,she can afford apartment 1,loan is 100k.
the btl apartment ,rent covers bout 78 per cent of the loan.
SHE,S just paying the bills,not much left for luxurys like going out.
she,d love to sell up unit 2, but does not have 75k,
ie shes in negative equity by 75k.
if she, walked away ,she d have nowhere to live, and probably lose her job.

IF the interest rates go up by 2 per cent ,ive no idea
what she will do.
as she has 2 mortgages with aib

With the skills she has,she would find it very hard to
get another job, she has no degree ,or special qualifications.

i don,t know how she got 2 mortgages in 2007 ,on 2 new apartments.
shes on a average wage.
she had apartment in dublin, made bout 90k ,
profit when she sold it.
ITS not that easy to walk away,specially if you have 2 loans from
the same bank.

its likely she would lose her job if she declared herself bankrupt,
since she works in the financial sector in a small town.

i reckon she paid round 270k for the 2 apartments, i don,t know the exact figure.
Maybe people are waiting for new bankrupcty law to come into force ,before they consider should i walk away from mortgage .

riclad wrote: »

She bought car, i reckon shes in negative, equity by 75 k on each apartment,
She says unit 1 ok, i live there ,
she cant sell apartment 2,she has to get a new tenant every year.its not in dublin.
she borrowed ,about 280k, shes in negative equity.
I DONT know the exact figures as i have the heart to ask her.
its STRESSFUL ,getting tenants ,doing repairs ,
its like she s working for the bank,
i,d say 90 per cent of her wages goes to the bank, on loans.
I PRESUME,. she thought it would go up in value ,or be a good investment,to be honest ,or else she was just stupid.
IT was bought in 2007.I dont think she got any financial advice,from anyone,
just went to bank, and said, i earn x, i have x amount, in savings ,
how much can i borrow/
BECAUSE its a 2bed apartment ,she cant go to council

get a rent allowance ,client,
ie for the same money she could have got a 7 year old
3bed house in the same area,with a better rental return ,
better investment in the long term.
much easier to rent.

Theres a LIMITED amount of people who can just give back a house to the bank ,ie a btl investor may have 2 loans,
one on house a, he lives there,
no 2 on an investment property.

ITS tough being a btl investor ,when the rent is less than the loan,
you are paying 1000s of pounds into a house,
thats losing value,
eg loan 150k, house maybe worth 90k.
Bank wont let you sell it, unless you have the 60k to pay the difference in sale price, house loan value.
She has very little savings, she would love to give the investment back tommorow.
IT can be hard outside dublin to get a dependable working person as a tenant who,ll pay the rent on time.
A single person on rent allowance is unlikely to be able to pay rent on a 2bed unit,
and single mother s just rent a house , as rent is cheap outside dublin ,
not much point in renting a 2bed apartment ,when you can get a house for the same price.
I reckon at that time apartments were 120 - 150k in that area.
i,ve no idea how much she paid,all i know for sure is she has to mortgages from aib.
SHE may have 90 per cent loan on the investment property,
and say owe 95k on the unit where she lives.
i don,t think she can afford to sell either unit, as both have lost 75k in value in the last 4 years.The loans are probably 30 year term .,i,m just guessing .as i see no point in asking her for the details of the loans.

i f you are on welfare, single person , and go on housing list ,
you are considering homeless,
ie to apply for rent allowance ,you need to officially considered homeless.
ie i know single mother lived with her mother in family home, age 22,
left home,got house on ra 1000 a month .
ie i think its a technicality, you need to considered homeless,
to get on the housing list , to qualify for ra.
she left home, 1 child, in order to qualify for a council flat,which she got after 7 years on ra.

I don,t see the attitude,screw the renters anywhere,
as more and more young people are renting, as even if you are working in a stable job,
its hard top get a home loan in most areas of ireland. Even people who have money maybe afraid to buy a house now, ie prices are still falling every year in most areas.

Most of the sympathy is with family,s who bought apartments or houses and are now stuck in
negative equity.

IT s more like screw the btl investors ,they were greedy or stupid ,or reckless
they deserve whats happening to them.
if they get screwed by the banks, so what?
Thats not my opinion, that,s just what i read,
ie the average person does not have a high opinion of landlords.
if you a renting a flat for the last 5 years,i don,t consider you homeless.