Mortgage help

molly_1

Hey,trying to think this tru and was wondering if anybody knows a bit more or has gone tru this experience I bought a house 7 years ago for 200k with my sister,it was a 100% mortgage.its in the country and due to work commitments I was not able to move into it,I continue to live and rent in Dublin and can't see it happening in the future of me living in it.my sister was paying equal share of the mortgage and lives in the house,that was until is lost her job 3 years ago.we got one year of payment insurance cover help with the mortgage then that stopped
The mortgage has now on reduced payments and my sister pays a small amount into the account and I continue to pay my weekly amount to cover the mortgage repayments
The house is in negative equity,might be lucky to sell it for 90k and it seems very little of the mortgage has been paid back
I'm at a stage where I would be happy to give the house to the bank and forgot about what I've already paid as I'm sick of struggling to make ends meet
I don't even know if this is a possibility?
Any advice would be gratefully appreciated as I'm not to sure what I can do

Moonbeam

No, in Ireland it is not possible to hand your keys back to the bank.
Could you rent it out?

Stheno

You need to talk to your bank, but as you are meeting your repayments I doubt they will do anything.

It's not possible here to just post back the keys and forget about a debt

Citizen2011

the likelihood is that you are joint and severally liable which puts you both on the line for the debt.

MayoSalmon

Moonbeam wrote: »

No, in Ireland it is not possible to hand your keys back to the bank.
Could you rent it out?

Ehh it is very possible and hundreds are doing it. Its called "jingle mail" apparently.

Close friend works in NAMA and the amount of post they receive on a weekly basis with keys is unreal. Most move abroad after doing such though. There is a claus that after a certain amount of years the debt will cease to follow you.

You won't get a loan ever again but such is life.

ted1

jingle mail doesn't work in ireland. Your mate is a spoofer

Lisbeth Salander

Look up the Hub IRL, they are on Facebook, they have a site too. Like lots of info there.

MayoSalmon

ted1 wrote: »

jingle mail doesn't work in ireland. Your mate is a spoofer

Never said it works just said it happens

:rolleyes: Also not really something you make up.

Rhys Essien

OP,can the house be let out or can your sister get in someone to rent a room?.
Either way she will have to pay her half.You will have to get tough with her.

No Pants

Stheno wrote: »

You need to talk to your bank, but as you are meeting your repayments I doubt they will do anything.

They are on reduced payments right now, but that won't last forever. If the sister doesn't get a job, and that might require moving, the bank will eventually move to repossess and then you'll just have the debt and no house.

lau1247

reduced payment won't last forever but can the OP's sister rent out the remaining room in the house to help with the repayment?

Consider the side that if you give the house back, your sister will still have to rent somewhere to live, might as well use that money towards the house if possible..

As for negative equity, it is only a true reality if you're thinking of selling.. considering that you have paid for the past 7 years, that's already a big chunk paid

You have to weight the pros and cons OP

Rachiee

lau1247 wrote: »

considering that you have paid for the past 7 years, that's already a big chunk paid
OP

7 years on a 100% mortgage on a reduced rate may have been a lot of money but it won't have dented the principle debt, the first 10 years you're mostly paying off interest anyway but if you ask for a reduction this will only go off interest not the principle debt.

DoesNotCompute

molly_1 wrote: »

Hey,trying to think this tru and was wondering if anybody knows a bit more or has gone tru this experience I bought a house 7 years ago for 200k with my sister,it was a 100% mortgage.its in the country and due to work commitments I was not able to move into it,I continue to live and rent in Dublin and can't see it happening in the future of me living in it.my sister was paying equal share of the mortgage and lives in the house,that was until is lost her job 3 years ago.we got one year of payment insurance cover help with the mortgage then that stopped
The mortgage has now on reduced payments and my sister pays a small amount into the account and I continue to pay my weekly amount to cover the mortgage repayments
The house is in negative equity,might be lucky to sell it for 90k and it seems very little of the mortgage has been paid back
I'm at a stage where I would be happy to give the house to the bank and forgot about what I've already paid as I'm sick of struggling to make ends meet
I don't even know if this is a possibility?
Any advice would be gratefully appreciated as I'm not to sure what I can do

OP, you need to contact MABS asap, and make an appointment to talk to one of their advisers: https://www.mabs.ie/

Have you contacted the bank about your concerns? It is highly unlikely that they will let you just hand back the keys, but they may be able to restructure the mortgage to ease the repayments, or to allow you and your sister to pay interest only payments until your situation improves.

Moonbeam

MayoSalmon wrote: »

Ehh it is very possible and hundreds are doing it. Its called "jingle mail" apparently.

Close friend works in NAMA and the amount of post they receive on a weekly basis with keys is unreal. Most move abroad after doing such though. There is a claus that after a certain amount of years the debt will cease to follow you.

You won't get a loan ever again but such is life.

Jingle mail only exists in America and not in Ireland .

The_Conductor

If you sell the property (which you are not free to do, you need the permission of the lender to do so)- the 110k (or whatever) is outstanding- and must be financed.

Certain lending institutions are looking at treating negative equity debts such as this in a reasonable manner- normally it involves handing over the property- and having a large portion of the o/s (but not all) debt, written down.

If you come to an arrangement with the bank rather than ignoring the debt- walking away from it- or declaring bankruptcy- at least you have a financial future in the EU.

You need to get professional advice- as a first step contact MABS- but be aware they are snowed under.

MayoSalmon

Moonbeam wrote: »

Jingle mail only exists in America and not in Ireland .

People are doing it here...they may not be getting away with it but they are doing it.

The_Conductor

MayoSalmon wrote: »

People are doing it here...they may not be getting away with it but they are doing it.

It has legal standing in the US because of the non-recourse nature of mortgage lending there. Here- where we do not have non-recourse lending- its an entirely futile gesture, with no standing, and liable to ruin a person's credit record for ever after.

ted1

MayoSalmon wrote: »

People are doing it here...they may not be getting away with it but they are doing it.

It has no bearing on anything. its the same as dropping your keys in the sink.

what advice are you trying to offer the OP? People fall down the stairs, should the OP fall down the stairs? it won't help him one bit but sure people do it.

The_Conductor

ted1 wrote: »

It has no bearing on anything. its the same as dropping your keys in the sink.

what advice are you trying to offer the OP? People fall down the stairs, should the OP fall down the stairs? it won't help him one bit but sure people do it.

Or down a wishing well.
Its an entirely meaningless gesture.

MayoSalmon

ted1 wrote: »

It has no bearing on anything. its the same as dropping your keys in the sink.

what advice are you trying to offer the OP? People fall down the stairs, should the OP fall down the stairs? it won't help him one bit but sure people do it.

Not offering any advice per se. Just decribing what others are doing that are in similar situations.

The housing crisis is an unprecedented situation in this country. People are doing crazy things out there from strategic defaults to mailing keys. The banks haven't got a clue on how to deal with this and the government hasn't got a clue.

If I was to offer advice it would be as follows. Move to the UK, file for bankruptcy, this will dispose you of all your assets. Return to Ireland after 12+ months with a clean slate. Easier said then done of course, but the alternative will be living the next 30/40 years being a debt slave.

jlm29

MayoSalmon wrote: »

Not offering any advice per se. Just decribing what others are doing that are in similar situations.

The housing crisis is an unprecedented situation in this country. People are doing crazy things out there from strategic defaults to mailing keys. The banks haven't got a clue on how to deal with this and the government hasn't got a clue.

If I was to offer advice it would be as follows. Move to the UK, file for bankruptcy, this will dispose you of all your assets. Return to Ireland after 12+ months with a clean slate. Easier said then done of course, but the alternative will be living the next 30/40 years being a debt slave.

This is crazy. There's so many unknowns. For all you know, the op has a great job, that would be very hard to come by in 12 months time. You're suggesting that she throw in the towel and live in the uk for a year...and come back, potentially to nothing. She's managing to pay the mortgage, or some of it anyhow.. Why should anyone else pick up the tab?

No Pants

MayoSalmon wrote: »

debt slave.

An interesting name to call someone who buys a house and then doesn't bother to live in it. I'm sure there are others more suitable.

Arbiter of Good Taste

MayoSalmon wrote: »

but the alternative will be living the next 30/40 years being a debt slave.

So now someone who has voluntarily taken out a mortgage and is able to service it is a debt slave? Good to know.

Boombastic

get your sister to move out and rent the whole house out

No Pants

What size is the house OP and where exactly is it?

MayoSalmon

jlm29 wrote: »

Why should anyone else pick up the tab?

But we are already picking up the tab....that mortage is bank debt..which in turn is owned by the taxpayer.

jlm29

MayoSalmon wrote: »

jlm29 wrote: »

Why should anyone else pick up the tab?

But we are already picking up the tab....that mortage is bank debt..which in turn is owned by the taxpayer.

Yes but at the moment, the op is servicing the debt she took out. While also renting in Dublin. She must be earning a reasonable amount of money at that rate. Why should the debt be written off?

MayoSalmon

jlm29 wrote: »

Yes but at the moment, the op is servicing the debt she took out. While also renting in Dublin. She must be earning a reasonable amount of money at that rate. Why should the debt be written off?

In this case it probably shouldn't. I do wonder where the house is located though? Sounds like it could be a holiday home?

The OP said "he or she was sick of struggling to make ends meet"

By the sounds of it the ends may not meet at somepoint in the very near future. The OP is not going to continue paying the mortagae on this house for the next 20 years...so what should happen?

The bank should take back the house and sell it, then come to an agreement with the OP for a final amount due.

jlm29

MayoSalmon wrote: »

In this case it probably shouldn't. I do wonder where the house is located though? Sounds like it could be a holiday home?

The OP said "he or she was sick of struggling to make ends meet"

By the sounds of it the ends may not meet at somepoint in the very near future. The OP is not going to continue paying the mortagae on this house for the next 20 years...so what should happen?

The bank should take back the house and sell it, then come to an agreement with the OP for a final amount due.

It depends again on a few unknowns, but from the op, it seems like the op bought jointly with her sister, the sister can't pay her share of the mortgage, but the op can. It seems from the post that the sister is living in the house, and the op says she is not. There's no mention of renters/lodgers etc.
the option of the sister taking in lodgers should be explored.
The option of the sister moving out, and paddling her own financial canoe should also be explored, if the house could be more easily rented as a whole.

molly_1

Thanks everyone for the feedback,it's giving me some info and a lot to think about
When I bought the house 7 years ago,I had great plans to transfare within my employment to co Kerry,a transfare window didn't open up and then the recession kicked in and all transfares,promotions were put on hold and still seem to be that way.so plays a big part of being unable to live in the house as I'm in my employment 15years and enjoy it very much,am now also in a relationship which would make me question my decision to move if an opportunity came up which is quite unlikey.
I'm currently seeking help of MABS as it is a constant struggle to pay rent and pay the reduced mortgage,once my bills are paid some weeks I have not a cent
I have put a room to rent on daft and such sites but no luck so far
It was a quick decision to buy the house when I did as I was only 20 and the banks couldn't of been happier to give mortgages to most people..hind site is a great thing celtic tiger and all that

Boombastic

your sister needs to start contributing. you are subsidising her lifestyle. if she can't get work in that part of the country she needs to move or even emigrate. she has financial responsibilities and needs to up her game.

The_Conductor

By rights- she should be paying you rent for your half of the property- you are paying your part of the mortgage- which is effectively, letting her stay in the property for half what it would otherwise cost her.

Larry Wildman

MayoSalmon wrote: »

Ehh it is very possible and hundreds are doing it. Its called "jingle mail" apparently.

Close friend works in NAMA and the amount of post they receive on a weekly basis with keys is unreal. Most move abroad after doing such though. There is a claus that after a certain amount of years the debt will cease to follow you.

You won't get a loan ever again but such is life.

The OP would be far better served working with his/her bank towards a sustainable solution.

Jingle mail is not a runner in Ireland.

Rachiee

Sounds like the op is already on an interest only mortgage repayment there's not much more the bank Will offer.