Can anybody explain how this works? Hse for €15k

racso1975

Can anybody explain how this works to me please. It's a €15k deposit and 700 a month (you continue paying the mortgage) and you can get a mortgage in the next 7 years in your own name. Can't figure it out.

Cheers

http://touch.daft.ie/carlow/houses-for-sale/tullow/the-laurels-tullow-carlow-1343039/

FortySeven

racso1975 wrote: »

Can anybody explain how this works to me please. It's a €15k deposit and 700 a month (you continue paying the mortgage) and you can get a mortgage in the next 7 years in your own name. Can't figure it out.

Cheers

http://touch.daft.ie/carlow/houses-for-sale/tullow/the-laurels-tullow-carlow-1343039/

Not sure about the legality of it but I know the house in question. I viewed it at the height of the boom just after it was built.. 2005 ish if I remember. Might be someone caught in negative equity and unable to sell because of a shortfall. A 15 grand lump sum and a years rent might put them in a position to sell?

johnnyskeleton

Its a poorly thought out attempt by someone to get out of their negative equity scott free and get their 15k back.

They dont say how much more of a mortgage there is but presumably they want you to pay it all in full. This guy is presumably in a 150k house with 200k mortgage and wants someone to pay him 15k and then take over the mortgage payments. He magically turns a 50k negative asset into 15k positive cash!

The problems for the purchaser are:
1. You wont actually own the property
2. If 1 above is not enough to scare you off giving a stranger 15,000, then you have bigger problems.

johnnyskeleton

Edit: just had a look at the auctioneers website. Seems a little amateurish to be honest. Only a mobile, about 4 or 5 properties for sale. It all sounds very odd:

http://www.pjg.ie/lettings

the_syco

johnnyskeleton wrote: »

Edit: just had a look at the auctioneers website. Seems a little amateurish to be honest. Only a mobile, about 4 or 5 properties for sale. It all sounds very odd:

http://www.pjg.ie/lettings

It's "about" section is his CV? WTF?

=-=

The €15k thing sounds like a scam. After four years, he throws you out, and keeps your €15k.

ohnonotgmail

are you not just paying 15K for the privilege of renting his house until he decides he kick you out?

Masala

ohnonotgmail wrote: »

are you not just paying 15K for the privilege of renting his house until he decides he kick you out?

AND... pay €700 month for seven Years.

Where's does the €15k come into it in year 7.

Also... is he giving guarantee that he will sell the house to YOU in 7 years?? At what agreed rate?

Jaysus.... talk about loose arangements

SnakePlissken

Pat Garvey you absolute bloody chancer, though I've little sympathy for someone who might willingly give a stranger 15K with their eyes this closed.

The P.J Garvey auctioneers website also looks like something from Geocities circa 1998

FortySeven

My mother is in a situation at the moment where she has paid a deposit as a commitment to buy at a later date whilst she rents the house in question. She is waiting for her house to sell and has a legal contract and it's all above board.

This may just be light on details in the ad. A solicitor could make the deal work I suppose.

Still, looks dodgy.

4ensic15

As there is an existing mortgage on the house, has the bank agreed to the arrangement? If not, it is void.