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Paying for a house you don't own

  • 14-01-2009 9:54pm
    #1
    the_syco
    Registered Users, Registered Users 2 Posts: 37,316 ✭✭✭✭


    Watching Primetime on the TV now...

    Family in council house now, paying €800 a month for a house they don't own, for the next 10 years. They had taken out a 100% mortgage, and when they went to sell their house, everyone else was.

    Was wondering, what gives? Also, why would they have to keep paying €800 a month for the next 10 years ... €96,000 the interest, or what?


Comments

  • #2
    dotsman
    Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    No idea. Was there any other details. What do you mean they got a 100% mortgage? If they got a mortgage, surely they used this to buy the house???


  • #3
    pickarooney
    Moderators, Arts Moderators Posts: 35,738 Mod ✭✭✭✭pickarooney


    I think this phenomenon is known as 'rent'.


  • #4
    Bluefoam
    Registered Users, Registered Users 2 Posts: 7,754 ✭✭✭Bluefoam


    dotsman wrote: »
    No idea. Was there any other details. What do you mean they got a 100% mortgage? If they got a mortgage, surely they used this to buy the house???

    Can you reword this so I can understand wtf you are saying?


  • #5
    eclectichoney
    Closed Accounts Posts: 4,291 ✭✭✭eclectichoney


    No, I got the impression they had to sell the property as they couldn't make the repayments. But the house is now worth less than they paid for it so there was a shortfall between what they owed the bank and what they got from the sale, which is costing them €800 a month over ten years to pay back.

    i.e. The not very nice world of negative equity :(


  • #6
    dotsman
    Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    Bluefoam wrote: »
    Can you reword this so I can understand wtf you are saying?

    :confused:
    No idea.
    I have no idea "why would they have to keep paying €800 a month for the next 10 years"
    Was there any other details.
    Was there any other details given out on the program to help me determine why they might be paying this money (as the OP contains insufficient detail to determine a correct answer)?
    What do you mean they got a 100% mortgage? If they got a mortgage, surely they used this to buy the house???
    Th OP mentions that they got a 100% mortgage. Therefore, I would have assumed that they do own the house. However the OP also states otherwise ("paying €800 a month for a house they don't own) - therefore I am very confused.

    Fortunately, eclectichoney (who also apparently saw the show) has since suggested that they did own it, but subsequently sold it and that the €800 is to pay off the resulting negative equity. If this is the case, it makes the original post a lot clearer.


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  • #7
    the_syco
    Registered Users, Registered Users 2 Posts: 37,316 ✭✭✭✭the_syco


    eclectichoney wrote: »
    No, I got the impression they had to sell the property as they couldn't make the repayments. But the house is now worth less than they paid for it so there was a shortfall between what they owed the bank and what they got from the sale, which is costing them €800 a month over ten years to pay back.

    i.e. The not very nice world of negative equity :(
    Ah. That explains it. Was totally confused why they'd be paying that money for a house they didn't live in.


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