Hi, I desperately need advice.
I own two houses (It's a long story and I made some bad decisions a few years ago (and took bad advice) - when I had a really good job and long term partner. Needless to say, now I have neither.)
I have been unemployed for over a year and can't get work in my area. I have been looking at ways to re-train and have an idea to start a business so I can come off social welfare and start making payments again. I have no income at the moment except social welfare. I have not been able to make any repayments on my 2nd house in over a year. My home - I pay interest only on.
Even though I have been communicating with both banks since the week I lost my job the second bank has continued to charge me interest and capital and I am now over 19,000 in arrears. My home is the same (over 6,500 in arrears). Basically I owe: 315k plus 19,000 in arrears and 380k plus over 6,500arrears. Current value of houses are (120k and 240k). It is probably worth saying that even before I lost my job I was starting to struggle a little with my outgoings. I had spoken to the bank months before I lost my job trying to put a plan in place incase it happened and I was basically told contact them when it does happen but now that it has happened they still wont negotiate. Neither bank is Irish owned and they say they don't do debt forgiveness or need to negotiate.
I also have credit union loans, credit card loans all maxed - a lot of this was to service my bills when I lost my job first.
I have been advised to go bankrupt - but I really don't want to do this. I believe if I just had one mortgage albeit massive - I could work to service that but with two mortgages I don't ever see a way I can manage them. And its not just the mortgages that cost - its the 2 life insurances, house insurances, then PRTB, NPPR and property tax. Also its an old house and things keep breaking so maintenance is very costly.
I seem to have hit a crossroad where I don't know if I should start my business as a sole trader and continue talking to the banks (even though it has done no good so far) or should I just give up? I really don't know what to do. I'm not afraid of hard work and I do want to sort this out. Any help or advice would be greatly appreciated as my head is in a spin most days lately and I know if some resolution isn't forthcoming I am likely to crack.
I own two houses (It's a long story and I made some bad decisions a few years ago (and took bad advice) - when I had a really good job and long term partner. Needless to say, now I have neither.)
I have been unemployed for over a year and can't get work in my area. I have been looking at ways to re-train and have an idea to start a business so I can come off social welfare and start making payments again. I have no income at the moment except social welfare. I have not been able to make any repayments on my 2nd house in over a year. My home - I pay interest only on.
Even though I have been communicating with both banks since the week I lost my job the second bank has continued to charge me interest and capital and I am now over 19,000 in arrears. My home is the same (over 6,500 in arrears). Basically I owe: 315k plus 19,000 in arrears and 380k plus over 6,500arrears. Current value of houses are (120k and 240k). It is probably worth saying that even before I lost my job I was starting to struggle a little with my outgoings. I had spoken to the bank months before I lost my job trying to put a plan in place incase it happened and I was basically told contact them when it does happen but now that it has happened they still wont negotiate. Neither bank is Irish owned and they say they don't do debt forgiveness or need to negotiate.
I also have credit union loans, credit card loans all maxed - a lot of this was to service my bills when I lost my job first.
I have been advised to go bankrupt - but I really don't want to do this. I believe if I just had one mortgage albeit massive - I could work to service that but with two mortgages I don't ever see a way I can manage them. And its not just the mortgages that cost - its the 2 life insurances, house insurances, then PRTB, NPPR and property tax. Also its an old house and things keep breaking so maintenance is very costly.
I seem to have hit a crossroad where I don't know if I should start my business as a sole trader and continue talking to the banks (even though it has done no good so far) or should I just give up? I really don't know what to do. I'm not afraid of hard work and I do want to sort this out. Any help or advice would be greatly appreciated as my head is in a spin most days lately and I know if some resolution isn't forthcoming I am likely to crack.