Three month Bankruptcy Option Surrendering Property

dharma200

This seems like a considerable move forward and maybe gives some people hope of getting out of negative equity hell? Opinions?
http://www.irishtimes.com/business/personal-finance/debt-free-in-three-months-with-new-bankruptcy-option-1.1820244

NIMAN

Opinions?

More for the taxpayer to pay.

murphaph

Great. Happy my taxes can be used to do this instead of building roads, schools, hospitals etc. What a ridiculous country. Absolutely no personal responsibility is expected any more. There is literally no reason now to even try to maintain your payments. In fact this could just encourage people to rack up even more CC debt before they apply for this insolvency lark. Buy a load of crap on your CC and then keep it all, just handing over a house that is worth less than you (of your own accord) owe on it.

Taxpayer shafted again.

Bundy89

Only in Ireland this could happen, can someone explain who the fcuk is paying for the negative equity on these properties. .?

NIMAN

Bundy89 wrote: »

Only in Ireland this could happen, can someone explain who the fcuk is paying for the negative equity on these properties. .?

10 Taxpayer to pay
20 GOTO 10

RUN

mikom

NIMAN wrote: »

10 Taxpayer to pay
20 GOTO 10

RUN

10 PRINT "We all partied"
20 GOTO 10

RUN

Bundy89

Surely you'd sell the house for a loss and continue paying for the red, just like any other country does. But not here in the land of soft touches.

soap1978

Bundy89 wrote: »

Surely you'd sell the house for a loss and continue paying for the red, just like any other country does. But not here in the land of soft touches.

have the usa not done something like this as well?

murphaph

soap1978 wrote: »

have the usa not done something like this as well?

The US has no recourse mortgages. That means you can throw the keys back at the bank. In theory this should make the banks more cautious about who they lend to. They don't allow you to go mad with your CC and throw the CC back at the bank with the house keys. That unsecured debt is separate. Throwing the keys back at the bank in the US will also make a huge dent in your credit worthiness. It sounds like the "Irish solution" will enable people to get back borrowing again in 3 months!

NIMAN

I would very much doubt that you can get back borrowing again in 3 months, your credit record would be marked in some way.

We didn't all party by the way.

dharma200

I kind of thought all the above myself... I am sympathetic to those who signed up for stupid mortgages back in the so called Celtic tiger days, but remember thinking at the time, those people are crazy.
it does anger me in a way that someone who has build a huge monstrosity in the landscape, five six seven bedroom oil fired central heating in the middle of the country, huge mortgage, commuting to work... Etc they can just throw the keys back? I wish someone from the morgage orga station quoted would come on and explain this better... I fail to see how anyone now who is in negative equity , who is paying more than the rental in the same area, will keep paying for their house... It would be ridiculous if so done is in severe negative equity... We are going to end up with a country full of massive, once off huge houses... Apartments, and still the worse homelessness problem ever... I just can't get a grasp on the logic behind this? Can anyone explain it better to me than the article does........