House could save me, but how?

LegacyUser

In 2006 I was working and I had no debts.

I took out a loan to go to America to visit family members.

Then, late in the year, to my shock, I learned I was going to lose the job that I had had since 1996. It was a low paying job, but I liked it and I expected that I'd always be working there. Silly me.

I had previously been willed the house that I grew up in, and I immediately decided to sell it. Not to make a profit. I didn't care. I don't care. But my mother had months earlier moved into a nursing home and it was suddenly empty and going to loss.

But, there were legal complications (because my mother is still alive) and it has taken me over two years to get the house in my name. As of mid-December 2008 I am in a position to sell/rent the house.

Two years ago, as I started to run low on funds (with loan repayments, etc.), I started to use my credit card at the bank machine to help me get by after I got into trouble with my loan repayments. It was stupid, but I was under the impression that would soon have a house to sell and get myself out before the hole got too deep.

Obviously, I stopped going out at night, I stopped buying CDs or DVDs, I stopped going to the cinema. I stopped doing everything except eating and sleeping and paying back my loan, while I waited for the day that I would (a) be back at work, or (b) have the house in my name so that I could sell it. I always believe those things would happen 'soon'.

My best friend from school had a baby last year. But I've never visited. A bus ticket to the other side of the country seems wasteful until I'm back on my feet.

My niece had her first communion last year. I didn't go to see it. A bus ticket to go see that seemed wasteful under the circumstance. Time enough for that when I'm back on my feet.

I've lost a few friends over this. People who think I don't make time for them anymore. Cos I never 'go out' and I 'never visit'. So, at least, I've learned who my real friends are, I guess.

It's been a long two years of soliticor's letters and constant hope that this mess would sorted out very soon. Oh, and leaving in my cv all over town and getting polite rejection letters a few days later.

My dole would come in. And immediately go out on loan repayments, household bills, rent for the house I share and so on. And when I needed to, I used my credit card as a bank card to get cash to eat, buy new shoes (once in the last year), etc. I didn't go home for Christmas 2007. But I bought three gifts for my nephews and niece and went home for Christmas 2008 because I really needed to see these people. Even if I got put through a major guilt trip for staying away so long.

Just before Christmas, my Credit Card became maxxed out so now I can no longer afford money for food.

I am paying out more than half of my income on the credit card and the loan repayments alone. Then I have the rent for my room, my share of the ESB, my share of the phone, my share of the bin bags, my share of the household cleaning products.

In this darkest of times, I finally got word from my solicitor's that the house is fully in my name and I can sell it. No more legal problems.

However, and I cannot stress this enough, I cannot afford a bus ticket to go see the house, never mind afford to sell it.

A return bus ticket will cost me €30. I will need an extra €30 to afford a taxi to and from the bus to the house (two trips). It is in a town not covered by the bus lanes. So, as I type this, I cannot afford to go and see the house. If a buyer called me from the doorstep at this very moment and offered to buy the house for half it's value I would gladly sell it, except I cannot afford to get a bus ticket to go and hand them the key. Sounds funny, but it is not.

I don't think anybody reading this will understand. €30 isn't much. But it's a lot when you don't have it.

I have nobody I ask ask for money. My two closest friends in this town are now unemployed. One lost his job at the same time as me, and the other lost her job just before Christmas and she is in a mad panic right now because of her own bills. She's worse off than me, because she has a mortgage. My housemates were not born in this country, and both have poor english. One has almost no english. The other one translates for him. We barely speak, but we are not friends. Most of the time we just smile and pass each other in the hallway. I keep to my room at lot. Reading self-help books.

At least they are better than my previous housemates. One had friends who stole several hundred in money paid by all of us for bills. So having paid my bills once, I had to pay them again. The second one ran off when she lost her job and left the rest of use to cover her bills. She ran up hundreds in phone calls to her boyfriend's mobile in England. My credit card paid those bills after she ran off.

The house I was willed could save me. Each visit to the house will cost me €60 plus food while I am there for a few days. Let's say €100.

The house is full of my stuff. Already boxed (since 2006) and ready to move. A van load. I need to move that. It will cost money to move it. Money I do not have and cannot get.

The house is full of rubbish. Already bagged and ready for the dump (since 2006). That needs to be moved. It will cost money. Money I do not have and cannot get.

The legal bills need to be settled. Money I do not have and cannot get.

The house needs a new tap upstairs and it needs to be washed and cleaned. I can't afford the cleaning products to do this. Ideally I would buy some paint and paint it some week-end. But, aside from the cost of cans of paint, I can't afford a bus ticket to go and do this.

As I type this it is Monday evening and I have no money for food on Tuesday or Wednesday.

I went to MABS. Told them everything. They suggested I go to the Credit Union and get 10,000 and use this money to pay off the credit card and legal fees, and use the last few thousand or so to get to and from the house a few times, pay for the stuff to be cleared from it and show it to someone and get it sold/rented fast. I don't care if it goes for half it's book value. Until I went to MABS, the idea of getting a further loan for 10,000 never occurred to me.

Once I am debt free again, I can relax. Wait for my cv's to get me my next job and - maybe - use 15,000 of the house money to set up a small business I've always wanted to set up. More importantly, once I am debt free I'll be able to go for a pint again on a Friday night.

A friend brought me for breakfast this morning because I have no money in my pocket to feed myself. When I get my dole this week, it immediately goes out on bills. There are two ESB bills and it will take more than one week's dole to cover them. I have some bread in the house so I will eat again this evening, and I'll figure out what to do about breakfast when I wake up. In December I still had enough in my credit card to buy eggs and bacon and stuff. But that is not the case today.

Within one month I will not be able to pay my share of these bills, and I will not be able to pay my rent anymore. I will also lose my credit card.

I'm not sleeping any more. I just lie there, trying to figure this all out. I could move back to my home town, I suppose. But that would be a living hell. It's an okay town, but I wasn't popular there. I was perceived as gay and tormented for it. A lot of those guys have grown up and moved on, I guess. But I'd rather not move back and find out first hand.

Is there anywhere else I could go, where I could get this 10,000 and get myself back on solid ground before I lose everything. It won't take long.

Everyone seems optimisic that I can sell the house (well below value) or rent it (for very low rent).

That's great.

I would love to do this.

But I cannot afford a bus ticket to go and see the house.

MY one question is: seeing as I own a house is there anywhere I can get a loan of 10,000?

That is my one and only question.

Thank you.

tba

hold up, you seem pretty down, but the fact is you own a house that is a huge asset (I won't assume your age but i'm guessing late twenties early thirties and most people that age will not fully own a property) do not sell it for less than its value, that will haunt you forever.

Live there use the dole to eat and pay bills.
You seem like you are in bad shape so Id say live there and rent out a room or two if you want (you will get a large amount of rent tax free).

Please dont sell the house just yet it will only provide a quick cash injection which is not what you need, you need stability and a place to live, as temporary as it might be.

Call in the favors, you have friends that will lend you money to last till you get settled in your mothers old house.

Blush_01

AFAIK you can earn the best part of €800 a month renting rooms in your house tax free, but I'm not entirely sure of the terms. While that would probably effect your dole, at the same time you should be able to work something out.

Can you move from where you live back to the house for a few months to get your bills back under control and rent a few rooms to cover the ESB etc? If you give the house up now you might regret it for a long time.

If you're finding things so hard that you don't have enough money for food, would you contemplate approaching your local St. Vincent De Paul?

I know it's easy for people to offer solutions when they aren't in your situation, but (as hard as it is) please try to be positive. If all the paperwork for the house is in order it can't hurt to at least talk to your local Credit Union, however having been a regular saver would definitely work in your favour. They were mad enough to give me a car loan when I still had a pretty hefty student loan earlier this year, so with your collateral they should look more favourably on you and they're also in a much better financial position than banks at the moment.

The best of luck with everything.

LegacyUser

I don't understand, you have the deeds to the house don't you. Why can't you go in to a bank - remortgage the house for 50k or whatever, pay off your debts, take 10k to 20k to get back on your feet, still get the dole, look for a job or get an education, go out have fun, paying back the remainder of your mortgage when you get a full time job? I say full time job because if you have financial problems now, running a business might be a step too far for you at present... and it's a bad economy, not a great time to be starting one. Then sell or rent the house after you are back in work. I hate to say this but you only have yourself to blame here, so much of this hardship seems like it could have been avoided...

nuttz

I'd agree with tba above why not live there instead of where you are and draw the dole from there?

I don't think now is the time to sell property. unless you are going to buy somewhere else and it doesn't sound like you are going to.

loloray

OP, my post is going to seem harsh, but I am not saying it to hurt you.

I think you need to stop playing the victim here.

You. Own. A. House.
You have many options - MABS gave you good advice - get out a loan, using a credit card for cash is the stupidest thing someone who can not afford it can do.

Other posters have suggested you live in the house (obviously rent free) until you sell it.

Basically all you need to do is take out a loan, or remortgage the house. If you have nieces and nephews then I assume you have siblings, if you were left the whole house then again I am assuming that they were left something else - in which case I would imagine that they could afford to give you a small loan, or even buy you bread.

From what you said, I'm guessing you owe roughly five grand for your loan - that is an amount of money that should NOT have you starving and living on bread and water.

I think that you did NOT find out 'who your real friends are', but rather your friends found out if you were a real friend. Having a baby is more or less the biggest thing that will happen in someone's life, and you didn't even think your best friend was worth the busfare to visit her and the child. I know you have no money in your pocket - but if you own a whole house then this is thousands of euros of potential money. I imagine that your friend is sick that you have not somehow made it down to her (I know I would happily pay or loan a busfare to my friend to see my first baby).

You need to stop feeling sorry for yourself, stop lying in bed worrying, and take charge of your life.

The only thing that I feel sorry for you is that the house is now worth less than it was two years ago - although in the same way I do not think that we should be relying on inheritance to get ourselves out of financial troubles.

LegacyUser

Yes i agree with the post above(loloray)

If your are so much in debt why have you got a landline telephone? Get rid of it and get a mobile. Have you got the internet? get rid of that too or get mobile broadband.


Also credit cards cost 40 euro a year and they are hard to budget with. Credit cards arent like loans. The longer you take to pay them back the more interest you will be paying. Where is the house i dont want to know but can you thumb to it? Could you live there and start cleaning it up? There will be a lot you can do even if you dont have proper tools/ paint etc but be warned it will be hard work. It will also take your mind of your problems.


If you are selling the house it doesnt have to done up. Some buyers want a house that is ready to move into whereas others may want to do it themselves. so you have 2 choices move in and do it up or sell it the way it is

From reading your opst i get the impression that you don't know how to budget if you get your loan and sell your house you might not know how to handle all this money and be back to square one

Sofiztikated

You have a house left to you by your mother, and you're letting it lie empty, where you may not be happy while you pay rent on a house your definitly not happy in?

Even I can the easy choice there.

You haven't said why you won't move out of the current house, but I'd say get out of there, no matter what the circumstance.

Speak with the Credit Union and get a loan to cover the bill for the credit card, a small amount over to work on the house yourself and other bills, with the house as collateral, and set the payments so that you can manage them.

Move into the dirty old and "the important bit here" your own house.

Take it a room at a time, and clean it, do it up if you want/can, while looking for a job and lifting the dole. At least the cleaning etc will keep you active and get you out of that duldrum mindset you have gotten into.

Get rid of that credit card. Pay it off with the loan and cancel it. Worst thing in the world to have if you have money issues. (Trust me, I got into a bit of a spiral like you, using the CC for cash when I spend everything else on bill, and it just doesn't help.)

Stop feeling sorry for yourself. Your better off than some, you HAVE a house, even if you're thinking about selling it, you have some form of income, even if it is the dole. You have some mount debt, big whoop, and some people that went to school with you thought you were gay and you got slagged. Grow up. Your an adult. Sort your **** out, go see your friends' baby, go see your family. Forget about the business idea until you get yourself out of that hole, then by all means go for it.

Harsh but true

Tupins

Hi OP,

I think some of the people here have been quite harsh with you. Unless you are in a situation like this it is extremely hard to understand it. Unfortunately, I understand what you are going through as I was once in a position similar to yours. Lots of people bang on about being 'broke' but how many people here can hand on heart say that they have ever been in a position where they genuinely don't know where their next meal is coming from - think about that for a second - it is a truly horrible and frightening experience.

I think you are in a rut at the moment but please look at the one positive thing which is that you have a house of your own. I gather from the post that this house in a small town somewhere but seriously, you need to move out from where you are and move in to your house so that you can at least live rent free and have more control over your bills.

Have you applied to the Credit Union yet for your loan? If not then you should do so ASAP. With a house as collateral you should get it.

Like I say, I do understand how you feel as I too was once in a position like this. I know what it's like to go to bed hungry and just lie there stressing about bills. I never want to relive that experience. I was living abroad at the time so I was able to hide it from most of my friends back home (because unfortunately there is a shame in having no money) but I did get the cold shoulder from a friend who was living near me and was complaining that I never went out with her anymore even though I openly told her I couldn't afford it - as I said, people just don't understand. Someone here accused you of not thinking that your friends new baby was worth the busfare - most people in this day and age cannot comprehend not having busfare in their pocket or easy access to it, but as you know this can happen.

It can take a long time to recover from debt, but you can do it. It may feel like you will never get there but you will. I really hope everything works out for you.

MsFifers

I also think some people are being unduly harsh on this OP. Yes, he made some serious mistakes in not living within his means and relying on his credit card, but he really doesn't sound like he has been living the high life on it like a lot of people.

I think the suggestions to talk to a Credit Union or your local St Vincent de Paul are very good. Also, see if you could set up a meeting with your account manager in your bank. They may be able to discuss re-mortgaging options or advance you a loan until you sell the house.

A thing to bear in mind though is that you have to consider the possibility that the house will not sell very quickly. So it would be an idea to think about moving in yourself, or renting it out completely (although there are tax implications on this you would need to figure out - an accountant would be able to give you more info).

Hope it works out for you.

Sugar Drunk

Ok, I really think its madness for you to be paying rent when you own a house its a complete waste. Assuming you paid a deposit for rent, if you give notice that you are moving out you should get your deposit back and could use that money to pay to get to your house?

If you lived there rent free for a while thats bound to help you cut down on outgoings as no more rent to pay. You should be able to get a credit union loan considering you own teh house so I would make an appointment with them as soon as you can.

Id agree with some of the others about not just selling the house for less than its worth unless you absoloutely have to. You may regret it if you do and besides when you sell you will end up spending more money on renting somewhere else.

is it possible to live in your house and rent out a room or two?

LegacyUser

Remortgaging is a great idea. Approach St. Vincent de Paul, explain your situation and ask them could they give you something for the bus fare to see the house and whatever else you need in order to get it ready for renting. Seriously, they're lovely people - I know nobody likes to have to ask them but sometimes you have to swallow your pride and just do it. They can also give you Tesco vouchers for food & cleaning products. Maybe when the dust settles and you're getting regular cash again you could donate something back, if it makes you feel better.

What about your community welfare officer? Again, explain your situation - even if they can't give you a handout, I think they sometimes loan small amounts of money to get the bills sorted.

What's the story with your landlord? If you told him that you have money tied up in the house, he might accomodate some kind of written agreement regarding a delay of a month or two on your rent? Just an idea.

I wouldn't sell the house just yet... renting it out for maybe a year will give you a steady income which you'll be glad of while you get back on your feet.

People, don't be too hard on him - 30 quid for a bus ticket may as well be 1,000 when you just don't have it. But OP - you do have to stop feeling like a victim here - many people get themselves out of ruts like this and you will too.

Good luck