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Getting rid of Negative Equity

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  • 16-11-2010 2:32pm
    #1
    Enter Username
    Closed Accounts Posts: 103 ✭✭


    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?


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    #2
    dan_d
    Closed Accounts Posts: 2,819 ✭✭✭dan_d


    How does she feel about all this?


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    #3
    Enter Username
    Closed Accounts Posts: 103 ✭✭Enter Username


    dan_d wrote: »
    How does she feel about all this?


    Does it matter :)


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    #4
    Enter Username
    Closed Accounts Posts: 103 ✭✭Enter Username


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


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    #5
    Permabear
    Closed Accounts Posts: 39,022 ✭✭✭✭Permabear


    This post has been deleted.


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    #6
    Iago
    Registered Users Posts: 6,638 ✭✭✭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


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    #7
    Hunchback
    Registered Users Posts: 1,629 ✭✭✭Hunchback


    sound tempting.... free


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    #8
    lisameath
    Closed Accounts Posts: 3 ✭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".:(


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    #9
    sceptre
    Registered Users Posts: 19,608 ✭✭✭✭sceptre


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


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    #10
    michealsad
    Registered Users Posts: 18 ✭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.


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    #11
    Enter Username
    Closed Accounts Posts: 103 ✭✭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?


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    #12
    spider guardian
    Closed Accounts Posts: 884 ✭✭✭spider guardian


    idiotic in the extreme


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    #13
    coffee_cake
    Moderators, Category Moderators, Politics Moderators, Recreation & Hobbies Moderators, Society & Culture Moderators Posts: 81,309 CMod ✭✭✭✭coffee_cake


    Absolutely thick & stupid idea


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    #14
    dan_d
    Closed Accounts Posts: 2,819 ✭✭✭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.


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    #15
    michealsad
    Registered Users Posts: 18 ✭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


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    #16
    Speak Now
    Registered Users Posts: 8,535 ✭✭✭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.


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    #17
    Enter Username
    Closed Accounts Posts: 103 ✭✭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


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    #18
    Enter Username
    Closed Accounts Posts: 103 ✭✭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


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    #19
    username123
    Closed Accounts Posts: 7,484 ✭✭✭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.


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    #20
    Idbatterim
    Registered Users Posts: 17,849 ✭✭✭✭Idbatterim


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


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    #21
    Enter Username
    Closed Accounts Posts: 103 ✭✭Enter Username


    Idbatterim wrote: »
    Op your proposal might be of interest to Alison O'Riordain...

    Eh??


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    #22
    D3PO
    Registered Users Posts: 7,879 ✭✭✭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.


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    #23
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭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.


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    #24
    IITYWYBMAD
    Registered Users Posts: 1,035 ✭✭✭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?


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    #25
    Enter Username
    Closed Accounts Posts: 103 ✭✭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***


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    #26
    Enter Username
    Closed Accounts Posts: 103 ✭✭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......??


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    #27
    Enter Username
    Closed Accounts Posts: 103 ✭✭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.


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    #28
    Nonoperational
    Registered Users Posts: 7,401 ✭✭✭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.


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    #29
    Enter Username
    Closed Accounts Posts: 103 ✭✭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!!


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    #30
    Mr McBoatface
    Closed Accounts Posts: 1,579 ✭✭✭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.


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    #31
    IITYWYBMAD
    Registered Users Posts: 1,035 ✭✭✭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.


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