Choose paying back Mortgage or Choose Life?

mariano rivera · 24-10-2012 03:24PM #1

I wanted an Afterhours view on this as its not just a financial question but a lifestyle question

My story is this:

I built a house back in the boom years

My intention was to sell the house and with the profit have money towards buying my own house

Bank gives me a mortgage for a second house on the back off the house that i have yet to sell

Anyways, boom busts

Now left with two houses in negative equity

Approx. negative equity of 350k

I know, my own fault, my risk etc.

In the last 4 to 5 years, have done deals with the bank

Thankfully, I still have a job, that pays ok

But, I am skint, skint, skint with these payments

No money for anything out of the norm. have to watch every penny.

Unless I live until I am 200 years old, I have no chance of paying back this money

So, I am thinking of handing the keys back to the bank and rent some place and actually have a few bob in my pocket

Don’t care about credit rating or letters form the bank anymore

Just want start living again?

Dravokivich · 24-10-2012 03:27PM

Don't think handing the keys back is going to change much in regards to how much you owe them.

TOOYOUNGTODIE · 24-10-2012 03:28PM

you wont have money in your pocket.

your going on a one way ticket to 'instalment order' city. population you!!
They will get an order directly against you wages!!

only way to ''hand back the keys'' and have any chance of a life, is to leave this island.

yourdeadwright · 24-10-2012 03:30PM

I think you came to the wrong place if your looking for sympathy,
Terrible situation but people will say its your own fault ,

smash · 24-10-2012 03:30PM

mariano rivera wrote: »

So, I am thinking of handing the keys back to the bank and rent some place and actually have a few bob in my pocket

Yea, you can't do this in Ireland!

Hardonraging · 24-10-2012 03:30PM

Just do a face full of cocaine, and forget about the mortgage, you're kids/ family members will take on the debt when you die anyway ..

jaykay74 · 24-10-2012 03:30PM

mariano rivera wrote: »

I wanted an Afterhours view on this as its not just a financial question but a lifestyle question

Is leaving Ireland an option ?

mitosis · 24-10-2012 03:31PM

Negative equity is neither here nor there, and garners no sympathy. You should rent out the extra house and take responsibility for your own failed speculation.

theteal · 24-10-2012 03:37PM

mariano rivera wrote: »

Unless I live until I am 200 years old, I have no chance of paying back this money

was the original plan to live to 200?

Wacker The Attacker · 24-10-2012 03:39PM

Lifestyle is dictaed by your responsibilities

ChubbyHubby · 24-10-2012 03:39PM

Can't you rent out the 2nd house? Rent out the rooms in the one you are staying in? You're not choosing life, just running away from responsibilites.

jamesjoyce1710 · 24-10-2012 03:44PM

negetive equity mean nothing.
the best thing to do is

1)rent the house that will you will cover it mortgage best.
2)Rent rooms in the other house to help with mortgage payments on that

its not rocket science,

mariano rivera · 24-10-2012 03:46PM

ChubbyHubby wrote: »

Can't you rent out the 2nd house? Rent out the rooms in the one you are staying in? You're not choosing life, just running away from responsibilites.

I don't want to emigrate

I am Irish and want to live in Ireland

Second house is rented out

I have 2 people living with me who pay rent

All the money going to the bank

BTW, i am not looking for sympathy

Lately, I have been thinking that, I have one life to live.

El Guapo! · 24-10-2012 03:51PM

Rent out both houses and the rent should hopefully cover the mortgages. Meanwhile you move into a smaller rented place that you can afford out of your wages. It might be tough but it can be done.
Failing that, your only option is to do a runner.

jester77 · 24-10-2012 03:53PM

mariano rivera wrote: »

My intention was to sell the house and with the profit have money towards buying my own house

Not having a go at you OP, but too many people believed this. It's like the story of the fool you often hear about who hears about a sure thing in the 15:15 race at Cheltenham and walks into Paddy Power and puts his week wages on it.

Can you not rent one house and co-share in the other?

davet82 · 24-10-2012 03:54PM

i know someone in a similar situtation, they gutted the house sold everything copper piping the lot, stuck the keys in the letter box and got on a plane never to return.

i know they're happy now earning a good living else where in the world but will never be able to come back to Ireland.

either that or continue as is, they're not great options but thats it in a nutshell imo

Ole Rodrigo · 24-10-2012 03:56PM

Its a tough situation, but doing a runner wont give you the piece of mind you think it will.

bbam · 24-10-2012 03:56PM

mariano rivera wrote: »

I don't want to emigrate

I am Irish and want to live in Ireland

Second house is rented out

I have 2 people living with me who pay rent

All the money going to the bank

BTW, i am not looking for sympathy

Lately, I have been thinking that, I have one life to live.

mariano rivera wrote: »

I wanted an Afterhours view on this as its not just a financial question but a lifestyle question

My story is this:

I built a house back in the boom years

My intention was to sell the house and with the profit have money towards buying my own house

Bank gives me a mortgage for a second house on the back off the house that i have yet to sell

Anyways, boom busts

Now left with two houses in negative equity

Approx. negative equity of 350k

I know, my own fault, my risk etc.

In the last 4 to 5 years, have done deals with the bank

Thankfully, I still have a job, that pays ok

But, I am skint, skint, skint with these payments

No money for anything out of the norm. have to watch every penny.

Unless I live until I am 200 years old, I have no chance of paying back this money

So, I am thinking of handing the keys back to the bank and rent some place and actually have a few bob in my pocket

Don’t care about credit rating or letters form the bank anymore

Just want start living again?

i appreciate that you are in a position and know plenty in similar positions.. I'd say it all boils down to how much you want to stay in the country..

If you stay you may as well keep with the plans, bargain to kick the can down the road as much as yu can and then stick to the plan.. If jou just jack it in to live a better life then in time the banks will have your case before the courts and they'll be looking for your monjey to be stopped at source. You'll become one of those who planned the default for lifestyle and treated harshly in court.

Or you could post back the keys, clear your accounts and get on a plane.. to my knowledge they can't follow you for the money.. Hell you could rent just across the border and they couldn't touch you (open to correction), you'd still be in ireland. I personally wouldn't judge you on this but many here will, hell we're taking on charges and levi's for everyone under the sun, a bit of mortgage baggage just increases the pressure for some debt forgiveness..

CruelCoin · 24-10-2012 04:02PM

mariano rivera wrote: »

Unless I live until I am 200 years old, I have no chance of paying back this money

So, I am thinking of handing the keys back to the bank and rent some place and actually have a few bob in my pocket

You borrowed money, not bricks. Handing the bricks (keys) back won't change the fact you still owe them the money.
The terms of the mortgage were (and always are) repayment in cash. Keys are not usually an accepted form of repayment.

In short, you're buggered, get used to it.

Intensive Care Bear · 24-10-2012 04:03PM

theteal wrote: »

was the original plan to live to 200?

"My intention was to sell the house and with the profit have money towards buying my own house"

BraziliaNZ · 24-10-2012 04:04PM

mariano rivera wrote: »

I don't want to emigrate

I am Irish and want to live in Ireland

Second house is rented out

I have 2 people living with me who pay rent

All the money going to the bank

BTW, i am not looking for sympathy

Lately, I have been thinking that, I have one life to live.

I'm Irish but I wouldn't want to live there under your circumstances. No effin way. If I were you I'd move over to sunny England, get away from that mess.

westendgirlie · 24-10-2012 04:04PM

Hope things work out for you OP

24-10-2012 04:06PM

"handing back the keys" means you have no house AND a debt
Just like if I rack up a credit card debt and "hand back the card"
Doesn't change anything

Squiggle · 24-10-2012 04:08PM

mitosis wrote: »

Negative equity is neither here nor there, and garners no sympathy. You should rent out the extra house and take responsibility for your own failed speculation.

Just like the banks eh? :rolleyes:

kippy · 24-10-2012 04:10PM

Squiggle wrote: »

Just like the banks eh? :rolleyes:

Would you have shared the profits with us would you have profited from the first house?

You need to get the head down and wait out till this new insolvency bill/Consumer debt bill comes into force.
That might give you a few options.

Pj! · 24-10-2012 04:10PM

Just think of another scheme to make a puck of money. You can't get it wrong again, can you?

humanji · 24-10-2012 04:15PM

Are you averse to faking your own death?

24-10-2012 04:16PM

The whole I built a house to sell and use the profits to build my own house is one of the most ridiculous things that people do. Why not simply build one house, the house you want to live in and leave it at that. Far too many greedy people thought they could make a killing using the "free money" banks were offering and now they all have the same woe is me story.

If making a profit on the first house was so important then why did you not wait till the house sold before getting another mortgage. It's absolutely ridiculous that you assumed the house would sell. Even without the current global decline there's a chance that you'd still be paying back two mortgages and not be sitting pretty after making a few euro on the first house.

johnwest288 · 24-10-2012 04:18PM

Im in the same boat as you and I would ,Choose Life. Choose a job. Choose a career. Choose a family. Choose a ****ing big television, choose washing machines, cars, compact disc players and electrical tin openers. Choose good health, low cholesterol, and dental insurance. Choose fixed interest mortgage repayments. Choose a starter home. Choose your friends. Choose leisurewear and matching luggage. Choose a three-piece suit on hire purchase in a range of ****ing fabrics. Choose DIY and wondering who the **** you are on Sunday morning. Choose sitting on that couch watching mind-numbing, spirit-crushing game shows, stuffing ****ing junk food into your mouth. Choose rotting away at the end of it all, pissing your last in a miserable home, nothing more than an embarrassment to the selfish, ****ed up brats you spawned to replace yourselves. Choose your future. Choose life... But why would I want to do a thing like that? I chose not to choose life. I chose somethin' else. And the reasons? There are no reasons. Who needs reasons when you've got heroin?

Squiggle · 24-10-2012 04:24PM

kippy wrote: »

Would you have shared the profits with us would you have profited from the first house?

You need to get the head down and wait out till this new insolvency bill/Consumer debt bill comes into force.
That might give you a few options.

Thanks for the advice but I'm not the OP or in his situation. If I was I'd voluntarily surrender the properties, establish a COMI in the UK , go bankrupt there and make a fresh start after 12 months debt free. The new legislation in Ireland is a lot of shíte.

Chuck Stone · 24-10-2012 04:26PM

mitosis wrote: »

take responsibility for your own failed speculation.

If only that could be applied across the board.

Choose paying back Mortgage or Choose Life?

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