# Alternative strategy to deal with mortgage crisis



## Dermot (12 Mar 2013)

I would propose that people living in houses with a current value of 350k or more and where their property is in negativity that no write off be offered.
My solution;  Hand back house and move to a house that the occupants can afford. The bank with the problem to offer the occupants a mortgage taking account of their current and future income to purchase a house. The time scale for dealing with this to be 4 months.

I would propose that people living in houses with a current value of between 200K and 350k and where their property is in negativity or that the mortgage is unsustainable that no write off be offered.

My solution;   If they have the financial ability the bank offer them a 30 year mortgage on the outstanding amount.  Interest only for 10 years at a fixed rate for this period at 4%.  This should actually be less than the rental rate for that property.  After 10 years the SVR be applied with payment of interest and penalties.  If they cannot afford this or do not want to engage the Bank repossess.
I would propose that people living in houses with a current value of between 50K and 200k and where their property is in negativity or that the mortgage is unsustainable that no write off be offered.

My Solution; If they have the financial ability that the Bank offer them a period up to 15 years on the total amount outstanding at a fixed rate of 4% and then convert to SVR with interest and principal to be paid over the next 15 years.  In most cases this will cost less than renting and every one saves face.  Again if people do not engage I would suggest repossession.

Above would probably be more appropriate to people with income.  I have no financial qualification and is meant to provoke useful thoughts on the subject.  I accept that my views are that there has to be some consequences for being in over your head.


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## Brendan Burgess (12 Mar 2013)

Hi Dermot

Not sure if I follow any of your proposals. But I will take the first one. 



> I would propose that people living in houses with a current value of  350k or more and where their property is in negativity that no write off  be offered.
> 
> My solution;  Hand back house and move to a house that the occupants can  afford. The bank with the problem to offer the occupants a mortgage  taking account of their current and future income to purchase a house.  The time scale for dealing with this to be 4 months.



Why would they hand back the house?  If this is a solution, then they should put the house on the market and sell it. This might take 4 months, or it might take 12 months. 

Why would the bank give them a new mortgage? 

If I have a property worth €400k and the mortgage is €800k and I can service the interest , then no solution is needed. 

I wonder if I misunderstand what you propose?


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## Dermot (13 Mar 2013)

Tried to amend original post and answer Brendan's queries and when I pressed reply the unedited version of original post went but again and the reply to Brendan's queries disappeared. Please delete.


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