Getting rid of Negative Equity

Enter Username

Not sure if this is in the right forum.. maybe could be in Property?

Anywho here goes, I posted previously about a mate who is looking to leave the country as he cannot find work, the problem is he is in about €150,000 neg equity.

The options he has are rent the house out etc... but he is considering taking the following action which I think is a bit drastic.

1. He will say he is splitting up from his fiancée, wedding off and everthing
2. Say she is getting the house
3. Sign it over to her i.e deeds in her name
4. Continue to pay the mortgage for a few months
5. After 5 -6 months she will say she cannot meet the payments
6. Give back the house (Keys through letterbox)
7. Get blacklisted
8. Save for 2 -3 years he can then buy a house in his name for c €140,000

He knows she wil never get credit again but it is a small price to pay!!

Any thoughts?

dan_d

How does she feel about all this?

Enter Username

dan_d wrote: »

How does she feel about all this?

Does it matter

Enter Username

Ah but seriously, she is going along with the idea. The thought of clearing their neg equity is very appealing.

Permabear

This post has been deleted.

Iago

He knows that she's still going to be responsible for paying the difference between what the bank sell it for and what's owed right?

and that once they get married, her outstanding debts become his debts?

and so on and so forth

Hunchback

sound tempting.... free

lisameath

Yeah sounds good but not so good when the banks come after her which they will. And what if he dies and she inherits the house his children will get no inheritance cause the banks will take it.He's better to stick it out and "Ride the storm".:(

sceptre

More suited to Accommodation/Property I think as it's a specific case rather than a general discussion. Moving there:)

michealsad

If only it were that easy, I am in a negative equity situation and actually having a breakup with my partner. The only way to get someone off a mortgage is to re mortage the house for the amount outstanding on the existing mortgage. So the girlfirend will have to go and get a new mortgage for the WHOLE value of the mortgage, which will be impossible as the house is in negative equity, she will also have to pay all the legal fees, and even if they find some crazy bank to do this she'll need a deposit. I have a few friends in the negative equity break up situation and we are all pulling our hair out.

Enter Username

These are valid points but their financial problems are clouding their better judgement. He's a builder and hasnt worked for 2 years. I, and others are strongly advising them against it but it does seem to be gathering pace.

Also, are you sure her debt becomes his debt when married?

spider guardian

idiotic in the extreme

Absolutely thick & stupid idea

dan_d

Don't know - legally, it might be messy. I say that in relation to insurances etc. Also right now it might feel like they will be together forever, but (just in case), what happens if they aren't?Where do either of them stand legally?

And what happens if in 3 years time, he isn't able to get enough to earn a mortgage of 140k, and they can't find somewhere to live? As in, if he isn't earning enough, or the banks have stricter criteria?

Also I'm not sure about just saying "I can't afford the mortgage", and dropping off the keys. I'm pretty sure you have to be seen to make some attempt? Where do you stand in the eyes of the law - are you faced with court appearance/jail time, and if you come back in the country, will you be pursued as such the minute your passport passes back in? And what happens if they come back and the bank in question find out she's back in the country through, I don't know, the fact that she's opening a new bank account, or through Revenue (paying tax on a new job) or something???

He's kind of asking her to wipe her identity from the Irish system altogether, to be honest, and to stay that way - it's not like she'll even be waiting out a bankruptcy period or anything, she'll just be skipping the country on outstanding debt. If that seems to be a solution to him, then why doesn't he just say he can't afford his payments, drop the key back, and leave? Why does it have to be transferred to her name????

I'm being devil's advocate....personally I think it's an awfully silly plan.

michealsad

Enter Username wrote: »

These are valid points but their financial problems are clouding their better judgement. He's a builder and hasnt worked for 2 years. I, and others are strongly advising them against it but it does seem to be gathering pace.

Also, are you sure her debt becomes his debt when married?

They should ring the bank and tell them they are splitting up, and see what the say, I really dont think this is possible

Speak Now

Enter Username wrote: »

These are valid points but their financial problems are clouding their better judgement. He's a builder and hasnt worked for 2 years. I, and others are strongly advising them against it but it does seem to be gathering pace.

Also, are you sure her debt becomes his debt when married?

Yes her debt becomes your debt i mean his debt when married.

Enter Username

michealsad wrote: »

If only it were that easy, I am in a negative equity situation and actually having a breakup with my partner. The only way to get someone off a mortgage is to re mortage the house for the amount outstanding on the existing mortgage. So the girlfirend will have to go and get a new mortgage for the WHOLE value of the mortgage, which will be impossible as the house is in negative equity, she will also have to pay all the legal fees, and even if they find some crazy bank to do this she'll need a deposit. I have a few friends in the negative equity break up situation and we are all pulling our hair out.

Cheers Micheal, he has not got as far as looking at these details, this should open his eyes to reality

Enter Username

Jerry Seinfeld wrote: »

Yes her debt becomes your debt i mean his debt when married.

Just like your username your not funny:rolleyes:

I can assure you this is a mate I'm speaking about, not the most proficient on internet forums (more the shovel and barrow then keyboard and mouse type) so this is on his behalf

username123

He cant do (2) or (3).

There is no such thing as 'she is getting the house' and 'sign it over to her'. He is liable for half the mortgage and cannot 'give' that debt over to her. In order to 'sign it over to her' the original mortgage would need to be cleared and her to remortgage in her own name only.

He cant do (6). There is no such thing as jingle mail in this country - he/she would be persued for the outstanding mortgage amount - even if he/she leaves the country.

He wont be able to do (8) if himself and herself marry as you cannot buy a house in your own name only if you are married.

Its a totally naive and unfeasible plan.

Idbatterim

Op your proposal might be of interest to Alison O'Riordain...

Enter Username

Idbatterim wrote: »

Op your proposal might be of interest to Alison O'Riordain...

Eh??

D3PO

Enter Username wrote: »

These are valid points but their financial problems are clouding their better judgement. He's a builder and hasnt worked for 2 years. I, and others are strongly advising them against it but it does seem to be gathering pace.

Also, are you sure her debt becomes his debt when married?

besides the fact its the most stupid idea ive ever heard of it cant happen.

she would have to get a mortgage and she wont get one for the value of the house so it couldnt happen even if they wanted it to.

besides that when they get married her debt becomes his debt and vise versa.

besides which what your friend is proposing is that she defaults on her mortage. how is that any different than him defaulting on his .....

Again I cant tell you how f**king stupid their thought process is.

JoeyJJ

Please say you have a blog I can follow or a twitter acccount, maybe McWilliams will follow you on twitter.

Your plan is idiotic and unlawful.

IITYWYBMAD

Enter Username wrote: »

Also, are you sure her debt becomes his debt when married?

The debt stays, full stop. Do you think the banks/Gov is stupid? What do you think NAMA is doing? It's not debt forgivness, it's debt consolidation ffs...

Do you not think that they have looked at every scenario? This is a silly idea, I can understand why your friend(s) may be looking at this, but it's stupid tbh. What about an interest only option?

Enter Username

JoeyJJ wrote: »

Please say you have a blog I can follow or a twitter acccount, maybe McWilliams will follow you on twitter.

Your plan is idiotic and unlawful.

Joey you plank... read the rest of the posts and you may get into your thick skull its not my plan.

Twitter... ha, come on will you. I'd say the only type of twits you follow are Stephen Fry and co... ***cough***bender***cough***

Enter Username

D3PO wrote: »

besides the fact its the most stupid idea ive ever heard of it cant happen.

she would have to get a mortgage and she wont get one for the value of the house so it couldnt happen even if they wanted it to.

besides that when they get married her debt becomes his debt and vise versa.

besides which what your friend is proposing is that she defaults on her mortage. how is that any different than him defaulting on his .....

Again I cant tell you how f**king stupid their thought process is.

So what you are trying to say is......??

Enter Username

IITYWYBMAD wrote: »

The debt stays, full stop. Do you think the banks/Gov is stupid? What do you think NAMA is doing? It's not debt forgivness, it's debt consolidation ffs...

Do you not think that they have looked at every scenario? This is a silly idea, I can understand why your friend(s) may be looking at this, but it's stupid tbh. What about an interest only option?

Yeah they are on that already, as I said he hasn't worked in nearly two years.

Nonoperational

How did someone with such amazing intelligence get into €150k of negative equity in the first place?

I have some magic beans for sale if he's interested ask him to give me a PM.

Despite being unbelievably short sighted and stupid it's dishonest and crooked in the extreme.

Enter Username

gpf101 wrote: »

How did someone with such amazing intelligence get into €150k of negative equity in the first place?

I have some magic beans for sale if he's interested ask him to give me a PM.

Despite being unbelievably short sighted and stupid it's dishonest and crooked in the extreme.

How can you say they are so unbelievably short sighted when there are literally thousands of people in the same boat up and down the country. I myself am about 30,000 in neg equity living in the same town.

Are you saying that you predicted this housing crash and you knew what was going to happen, if this is the case son then I put it to you that you are wasting your incredible talents on boards. You should be straight up to government buildings to sort out the country.. while you are at it would you mind having a look at the Banks and the HSE if you get a minute. God you're brilliant!!

Mr McBoatface

The Loan/Debt belongs to both people, there is no way in hell the bank will remove partial responsibility from one person and hand all responsibility to the other.

The bank doesn't give a damn if the couple has broke up or not, they both signed a contract and they both have to do their best to honour it.

Negative equity does not impair your ability to pay, loss of earners might affect it. If they are having trouble your friends should meet with the bank and engage in payment restructuring discussions. They should not try to pass their misfortune onto others who where better informed or more insightful than them.

IITYWYBMAD

gpf101 wrote: »

How did someone with such amazing intelligence get into €150k of negative equity in the first place?

I have some magic beans for sale if he's interested ask him to give me a PM.

Despite being unbelievably short sighted and stupid it's dishonest and crooked in the extreme.

Ignore this...complete troll tbh

Enter Username wrote: »

So what you are trying to say is......??

Enter Username wrote: »

Yeah they are on that already, as I said he hasn't worked in nearly two years.

Well, he better find something to do, or re-re-negotiate with the bank, because the debt is not going away.

jobyrne30 wrote: »

The Loan/Debt belongs to both people, there is no way in hell the bank will remove partial responsibility from one person and hand all responsibility to the other.

The bank doesn't give a damn if the couple has broke up or not, they both signed a contract and they both have to do their best to honour it.

Negative equity does not impair your ability to pay, loss of earners might affect it. If they are having trouble your friends should meet with the bank and engage in payment restructuring discussions. They should not try to pass their misfortune onto others who where better informed or more insightful than them.

Read that ^. As that's the reality. Unfortunately we live in a society where the only people paying back the "real" debt, are those trying to live a life. I have a mortgage and loans etc...and I have no choice but to pay them back. I'm probably one of the lucky few, in that I never got any rise out of the so called "Tiger" so I'm not really suffering when it hit the sh*t.

However my tax bill has gone through the roof, and I'm struggling to keep 11 people in work, when the fallout has had sfa got to do with them.

The only option for your "mate" is to bugger off, and never come back.

Enter Username

jobyrne30 wrote: »

They should not try to pass their misfortune onto others who where better informed or more insightful than them.

Why not, isn't that exactly what is happening with the Banks and the Taxpayers?

Enter Username

IITYWYBMAD wrote: »

The only option for your "mate" is to bugger off, and never come back.

Okay before this thread goes any further let me highlight, I honestly did start this thread on behalf of a mate. I am typing this from work, not sitting on my arse at home watching Jeremy Kyle and Co.

He more than likely will be heading to Oz within the next few months, more than likely will rent out the house and going on the "advise" from most here will put any thoughts of dumping the mortgage out of his head

The_Conductor

Enter Username wrote: »

Joey you plank... read the rest of the posts and you may get into your thick skull its not my plan.

Twitter... ha, come on will you. I'd say the only type of twits you follow are Stephen Fry and co... ***cough***bender***cough***

One week posting ban for being personally abusive.
On the elapse of your ban, please read the forum charter if you intend to continue posting in this forum.

Regards,

SMcCarrick

Hayzooz

Amazing.

People in Ireland still believe in "property" "home owners"

It's a loan from a bank, with the security, at a minimum, being the house.

It's not yours until you pay the last installment.

Until then it's NOT YOURS.

Not your property, not your keys, not your house.

YOUR LOAN = THE HOUSE VALUE + THE DIFFERENCE, WHICH YOU WILL ALWAYS OWE TO THE BANK

This equation never changes.

Understand this, the rest is easy.

Boskowski

I'd advise him to call it squeaky bum time for a couple of years going on an oil rig or something like that. It might not sound appealing but it will be for a limited time and desperate times call for desperate measures. They will be in a 1000% better position afterwards. It seems these days people are willing to go to any length to avoid doing the right thing and work hard which surprisingly enough is still a feasible option.