How much are "fees"

population

Just wondering about this because I am thinking about selling my house as I am abroad for work (possibly for good) starting January. Basically I bought the house as a home to live in, never had any interest in being a landlord and indeed lived in it for 5 years until work in my industry tanked and I had to move away, initially to another county but now overseas.

Managed to rent the place out for a year but that has been a highly stressful experience and I am now at the point where if I can afford it, I just want to move it on.

So this brings me to the all important area of fees etc. I bought it for 177k in 2003 and peak value was 316k. Now one sold recently for 165k and I think that this is at least my clearest indicator of current market value. So assuming I sold for 160, and was staring at a loss of 10k plus (was interest only for a while so have not dented past the interest payments too much unfortuneatly), what fees would I expect on top of that and also how long before the bank starts breaking down my door for the 10k plus?

Cheers all

The_Conductor

Once you sell the property- you would be expected to clear the mortgage. Its possible that the bank may be willing to allow you commute the negative equity to a personal loan- but if you're planning on leaving the country indefinitely- I wouldn't hold my breath on this.

When you say one sold recently for 165k- its a safe assumption that this is tracking the market downwards. Realistically prices are falling between 1.4 and 2% per month (the higher falls being area and property type dependent- apartments being the property type that is currently falling the fastest).

Unfortunately- you will pretty much need to clear the mortgage- if you sell. Budgetting 10k for negative equity- given the recent sale price- may in fact be optimistic. I'd also allow 2-3k for proper advertising of the property with a reputable estate agent, and I'd be pricing below any other property in the area- if you want a sale before January (property is taking an awful lot longer to shift these days).

Be realistic- and be a bit ruthless with your pricing strategy- and you will sell the property. You will however have to try to figure how/where to come up with the balance to clear the mortgage.

population

Cheers SM

Spoke to the bank this morning and they said clear the mortgage or they will not release the deeds. Only have about 3k in savings and sort of needed that to facilitate the move away for work. Asked them about restructuring the excess into a personal loan and they point blank refused and just for good measure threathened me with legal action:rolleyes:

Pretty incredible stuff

The_Conductor

I'm sorry- I'm not surprised unfortunately- but I do recognise the position you're in (its not dissimilar to the position I'm in myself- with the exception being that I'm not going abroad).

When you said you're going abroad- it probably set alarm bells ringing for them- even on this forum there are a few examples of people suggesting they intend to run away from negative equity here, and start afresh elsewhere.

Do report back and let us know what you decide to do- and how you manage to do it- there are lots of very interested people who will probably be doing things very similar to you before long.........

population

No worries, will do.

For the record I did not actually mention going abroad to them at all. Just said that I was looking to sell and negative equity being what it is and all that realistically I might owe them a shortfall and how could we work that out.

They responded by threatening me with court action. Good to see NAMA made things fairer and more equitable in this society as Lenihan promised:mad:

population

Actually just to be clear on this. If I can no longer afford to pay for the house and they repossess. Do they sit on it or sell immediatley for shag all and try hit me for the shortfall for the rest of my natural life???

Is there no such thing as personal bankruptcy? Also I know Ireland is the only country in Europe where one can go to jail for failure to pay a civil debt, but if I am being prevented from working and earning enough to pay them back, surely a judge would see that???

The_Conductor

population wrote: »

Actually just to be clear on this. If I can no longer afford to pay for the house and they repossess. Do they sit on it or sell immediatley for shag all and try hit me for the shortfall for the rest of my natural life???

Is there no such thing as personal bankruptcy? Also I know Ireland is the only country in Europe where one can go to jail for failure to pay a civil debt, but if I am being prevented from working and earning enough to pay them back, surely a judge would see that???

It wouldn't necessarily go in front of a judge- as its purely a civil matter. The norm would be that the bank (or whatever creditor) would have a judgement registered against you- and it would be up to you to either satisfy the judgement- or declare yourself bankrupt. You can declare yourself bankrupt in Ireland- however Irish bankruptcy law is still modelled on Victorian law- and is penal in nature. You would not be allowed to hold a credit card, any personal loans or liquid assets above a certain level, and any earnings, including social welfare disbursements, would be purloined, until such time as the debt was satisfied. You would also be proscribed from holding any executive or non-executive position in any company, or being a director of a company- for a 12 year period (its tied into the company act in this respect).

Its a mess- and is periodically up for review- as at the moment- but as it stands- you're up the creek without a paddle......

S.

population

smccarrick wrote: »

It wouldn't necessarily go in front of a judge- as its purely a civil matter. The norm would be that the bank (or whatever creditor) would have a judgement registered against you- and it would be up to you to either satisfy the judgement- or declare yourself bankrupt. You can declare yourself bankrupt in Ireland- however Irish bankruptcy law is still modelled on Victorian law- and is penal in nature. You would not be allowed to hold a credit card, any personal loans or liquid assets above a certain level, and any earnings, including social welfare disbursements, would be purloined, until such time as the debt was satisfied. You would also be proscribed from holding any executive or non-executive position in any company, or being a director of a company- for a 12 year period (its tied into the company act in this respect).

Its a mess- and is periodically up for review- as at the moment- but as it stands- you're up the creek without a paddle......

S.

So essentially declaring bankruptcy would not make any difference as they would simply take any money I ever earn anyway, only this way I get to be shagged for the rest of my life on several fronts instead of just one??

Sweet Jesus

I think I would opt for prison over that:eek: