Home surrender

mark313

i was wondering if anyone knew any details about surrendering a home to the bank if you cant keep up with your mortgage? any info on the process would be greatly appreciated. is it legal to do?

godtabh

mark313 wrote: »

i was wondering if anyone knew any details about surrendering a home to the bank if you cant keep up with your mortgage? any info on the process would be greatly appreciated. is it legal to do?

You will still owe the debt. Talk to your bank to see if you can reorganise the debt

StillWaters

Keepingyourhome.ie

You can avail of free advice from a panel of accountants, details on the above site.

Newbeginnings.ie, but they charge for their service.

As the insolvency legislation is so new, you will need someone briefed on that to guide you.

Paulw

Your best approach is to just go talk to your bank. Most are more than willing to help you restructure your payments.

mark313

i have restructured the repayments but still struggeling massively. its a 40yr mortgage and since constant wage cuts its unsustainanable.

ABajaninCork

So sorry to hear of your troubles OP. But I agree with the others. DO NOT HAND BACK YOUR PROPERTY UNDER ANY CIRCUMSTANCES!! The bank will sell your home (if they can sell it! ) for a loss and will chase you for the remainder. Compound interest may be charged on it which will land you deeper in debt.

The last thing the bank will want to do is take your house. They have enough trouble trying to shift what they have.

Make an appointment to see someone at MABS. They can talk to and negotiate with the bank on your behalf. Maybe you can pay interest only for a while, or make token payments. But pay something. If you're paying something, then the bank will be far less likely to take action.

I wish you the very best of luck. This must be so stressful for you, but hang in there.

mark313

thanks very much for the help!!

Moonbeam

There is no way to do this in Ireland in the states it is referred to as JIngle Mail.

cookie1977

It's http://www.newbeginning.ie/ (not newbeginnings), I dont think they charge. They're lawyers working for free to help people who are really in trouble. Contact them or there's also FLAC

Edit: Newbeginning are charging a flat fee it seems. They used not to but are now. 250 it seems.
http://www.irishtimes.com/newspaper/finance/2012/0526/1224316732535.html

ABajaninCork

Here's something that might give you a bit of hope OP.

But what I said earlier still stands. Make an appointment to see someone about the arrears. And pay something, even if it's only a token payment. Bank is far less likely to take action then.

Procrastastudy

Is renting it out not an option? Perhaps you are outside Dublin but rent more than covers mortgages in the 40 year bracket in Dublin usually. My mortgage is about 70% of renting the same apartment.

cookie1977

Procrastastudy wrote: »

Is renting it out not an option? Perhaps you are outside Dublin but rent more than covers mortgages in the 40 year bracket in Dublin usually. My mortgage is about 70% of renting the same apartment.

They'd loose MIR and they'd have to pay PRSI, PRTB and possibly tax as well as other potential maintenance/renting out costs. It could well not be worth it as they may also loose their tracker if they had one and the bank could force them off any owner occupier preferential rates they are presently on. They'd also need to buy rental insurance too.

Worth looking into but probably not a goer.

D3PO

cookie1977 wrote: »

They'd loose MIR and they'd have to pay PRSI, PRTB and possibly tax as well as other potential maintenance/renting out costs. It could well not be worth it as they may also loose their tracker if they had one and the bank could force them off any owner occupier preferential rates they are presently on. They'd also need to buy rental insurance too.

Worth looking into but probably not a goer.

not to mind if they are part of the affordable housing scheme they may not be able to by clause in their purchase agreement. Also they will get hit with CGT when or if they need to sell.