# Hit a wall trying to find way out of debt



## tessy (3 Dec 2007)

Hi,
Wondering if some one can advise me with my debt problems?
My partner and i recently got a mortgage. (remortgage for him). When we signed the papers at the solicitors there was an issue of a shortfall at the time which we didn't take into consideration at the time and basically we now owe our solicitors over €10,000.This has become a very serious which is overwhelming at the moment. We have NO way of getting this money it seems. We have tried the banks for a loan and they said that too much money leaves our accounts every week. We are waiting to see what the credit union says as mypartner has €5,000 in that..The solicitor wants this money before the end of december (their End of Year). really frightened that we'll lose our home and end up in more debt..It doesnt seem that they are open to any sort of installment payment option either..
I am considering actually getting a mortgage top-up even though it is a ridiculous amount to put on a top-up. The bank we went to don't know the real reason for our loan requests. it doesn't seem very sensible to tell them that we need a loan to clear a loan in kind!


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## mf1 (3 Dec 2007)

How on earth did no-one ( including yourselves and the solicitor) not notice that there was going to be a shortfall? Its simple maths.

Is it the case that the solicitor has personally funded this shortfall? If they did, they were mad to do so and should just have stalled the whole process until you did have the funds. If they did, you do owe them the money. At least you have 5K in the CU - if CU won't  lend ( and god knows it does not sound as if you can afford to borrow any more from anyone) can you not just pay the solicitor the 5K?

mf


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## ClubMan (3 Dec 2007)

tessy said:


> When we signed the papers at the solicitors there was an issue of a shortfall at the time which we didn't take into consideration at the time and basically we now owe our solicitors over €10,000.


I don't understand how this arose either!

Can you post more detailed information and figures relating to your overall financial situation including things such as:

The property purchase price and current valuation
The mortgage amount, term and rate
Any other savings/investments or debts that you have
Your annual/monthly gross and net income and major outgoings
And what is your solicitor saying to you about collecting the outstanding €10K?


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## tessy (3 Dec 2007)

''The property purchase price and current valuation
The mortgage amount, term and rate
Any other savings/investments or debts that you have
Your annual/monthly gross and net income and major outgoings
And what is your solicitor saying to you about collecting the outstanding €10K?''

The current PP is 258,000 and the Valuation is 365,000.(this is a remortgage and it was when we bought out the other partner that the shortfall arose the solicitor just shrugged when i asked where it was coming from)

The mortgage amount is also 258,000
It is now about six months old.
Term is 35 years
rate is 5. % (approx)

My partnet has the 5,000 in Cu. Thats it. We have no other debts or savings.

My annual gross is 19,000 and partners is €26,000.
Our biggest outgoing is the mortgage and then other small things like esb, grocery etc..

The solicitor just wants the money especially €6,700 before their end of year.I don't think they are prepared to endure installments.


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## Neadyk (3 Dec 2007)

The missing €10k still isnt clear.  Is €10k above the agreed purchase price that you werent aware of? Why is your solicitor just "shrugging" when you ask him?  If you dont know where it came from you have a right to know from him/her.


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## mf1 (3 Dec 2007)

I suspect from the unfortunately limited information posted that this was a situation where OP bought out her partners ex co owner. So to raise the funds, OP and CP ( current partner) valued house, deducted outstanding mortgage and agreed to pay half the remaining equity to CP's ex co owner and also to redeem the then outstanding mortgage. And possibly to pay off some other debts also. 

The current valuation is 365K. the current mortgage is 258K so there appears to be plenty of equity to increase the mortgage to top up for the 10K needed. 

It is simple maths but what can happen is that the client inadvertently feeds the wrong information to the Solicitor who acts on the wrong information to their own detriment and then finds themselves bound to pay off debts due by the client that they were not aware of.  And the moral of the story is that the solicitor should never blindly accept what the client says but should be satisfied by extraneous evidence only. 

mf


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## tessy (3 Dec 2007)

The missing €10k still isnt clear. Is €10k above the agreed purchase price that you werent aware of? Why is your solicitor just "shrugging" when you ask him? If you dont know where it came from you have a right to know from him/her.

it was actually told to us and on paper we were informed of it.It just wasn't laymans terms. Plus i had actually decided to sit back and leave that side of things to my parner as i had done everything up until then.Thinking itwas safe enough to let things go.So i hadn't gone into any detail on documents thinking that my partner would let me know anything i'd need to know.(i put in an unbelievable amount of work into the remortgage as it was very bitty and people weren't co-ordinating themselves properly)

The solicitor shrugged as in it wasn't anything to worry about, (not at all!if we had been let know then we would have resubmitted the mortgage amount to include that deficit) and i did ask people after, but some said sure whats ten tho in the course of a mortgage...The missing 10 k is what the solicitor paid to pay of the other partner on top of other monies tendered by our bank.(not all of that just, the 6,700 is the money for the OP whose name was on mortgage, the rest constitutes fees)

I hope that might supply more insight.(?)


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## tessy (3 Dec 2007)

So the advice being given here is top-up the mortgage?This probably sounds so obvious to you guys but thanks for the help!
Actually Previous partner got less than that and we had no debts so it was a fairly clean kind of remortgage.
we were happy out until this...the only thing we had to pay was mortgage(probably the same as rent anywhere) and other basic living expenses, which was perfect as we are still quite young and have smaller than average salaries i suspect!

I spoke to the solicitors anyhow and bought more time. Think we are waiting for the CU to come back to us(or us them as case may be) and then i may think about the advice offered here and procure a top-up if the CU isn't forthcoming...


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## mercman (7 Dec 2007)

Tessy. The best route to take is to relax first. Your partner has obviously gone through hell and back in a break up and you don't want him to crack (or you). You are both working and may have to organise a budget to get your finances in order.


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