# Repossess Home & Move Abroad



## Catering141 (3 Mar 2011)

This has probably been asked before maybe someone can point me to the thread, I have searched but only found similar quesstions not the exact same.

House bought by my now husband (then boyfriend) in his name 4 years ago. What would happen if our house got repossessed? How bad would it have to get before they'd take the house? If they did, is only my husban's rating affected or will I be brought into the mix now that we're married? How long does bad credit rating last?

If we were to move abroad and left the bank the keys, what would happen regarding the balance on loan / going to prision? Would husband have warrant for arrest in Ireland?

I read thread on moving abroad and declaring bankruptcy in Ireland, can you only do this with business loans or does is work with personal debts, i.e house?

Who do I ask for advice on all this? Solicitor? Financial Advisor? Both?

Thanks


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## Brendan Burgess (4 Mar 2011)

Not paying back your mortgage would be a civil matter  and not a criminal matter, so your husband would not go to prison over it. 

Your credit rating is separate from your husband's. He can go bankrupt or have the house repossessed and it won't show up on your credit rating. However, lenders do searches by address and may factor it in. 

It is just not a good idea at any stage to hand back the keys to the bank. Your husband should go into the bank and explain the problem. He should tell the bank that he is selling the house and that there willl be a shortfall which he agrees to pay off. If they refuse their permission to sell the house, then he can hand back the keys. He will still owe the money, but he has done all he can. 

He will get a better price than the bank. If the bank sells it, your husband will have a much higher debt. 

If he sells the house what will be left is an unsecured personal debt. If your husband goes bankrupt in Ireland or abroad, it will be included in the bankruptcy. 

But the key message is to talk to your bank and try to reach an agreement first.

If these figures from a few months ago are correct, then your husband would be crazy to go to the hassle of bankruptcy.


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## Bronte (4 Mar 2011)

Ordinary Irish people cannot go bankrupt in Ireland, only very wealthy people. Can you confirm the figures on the other thread are correct, maybe redo the money makover showing how you've implemented some of the advice on there. It looks like you can live well withing your means but are putting too much money away in different savings schemes instead of paying down debt. Once you pay down the debt you can tackle the mortgage.


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## Brendan Burgess (4 Mar 2011)

Bronte said:


> Ordinary Irish people cannot go bankrupt in Ireland, only very wealthy people..



Bronte. I don't want to get sidetracked, but personal bankruptcy in Ireland is possible,but very unattractive, _at present._ However, it is very likely to become a more realistic option in the coming years when the bankruptcy law is reformed.


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## Catering141 (5 Mar 2011)

Yes those figures were correct. On a much better footing now too as have cleared a lot of debt/monthly expenditure and nowhere near going into overdraft anymore.

Only one loan outstanding now (paid the 130 and 255 per month). I didn't pay anything off the credit union using savings as was afraid to reduce all our savings as don't have much, had free meeting with accountant yesterday and she advised to increase money into savings and just tip away with the 331 a month into loan (50 of the 386 is savings).

Cancelled mortgage payment protection, and changed the mortgage protection(life assurance) to cover both me and spouse (I wasn't on other one) and paid first year up front (50% saving) and will be 20 a month from next year. We're insured up to 200,000 for 32 years.

Paid car insurance up front this year and halfed internet, also switched house insurance and paid up front and saved 60 euros by switching alone not including monthly saving.

Stopped an post savings for me and partner (160 a month). Going to pay bins up front in April so will cut that monthly expense and am starting half days in April so although I'll be on half wages, creche will be less.

Yes we spend a lot on TV, but we don't drink, smoke, go out for meals or cinema, very very rarely nor get takeaways, so need to have something. But cancelling movies next month(was tied to contract until then) and everything going for summer as sports will be over and will just get whatever comes in for free.

Now, back to this thread question. Problem is, like everyone else I suppose, don't want the house anymore, rumors being fixed rate going and TSB variable (or whatever linked company to them is) is gone up to near 10% (we're BOI) and ECB threating another 4 hilkes this year. Have a year and half on fixed rate left and really can't afford or want to pay 10% +. Would be happier to sell it and OK we've paid 45,000 into house so far , not including contents etc. and walk away with a loss of 50,000 and not have a house around our necks. Not having a house is not a big deal to us, having to enter the rental market isn't a bad scenario we feel and if husband got bad credit rating as long as mine OK and no chance to prison really feel the worst that can happen is loose house and bad credit.

Now it's not that Oh give back house and let tax payer pay for it don't want it. We don't want to be screwed anymore than have, paying 5% OK, we'll pay that, but if interest rates are 10-15%, well then we feel they can keep the house. Not worth it. Only in it 3 years, not much done with it. move on with our lives.

Been looking at the raffle the house threads on here. Seems like a good idea....


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## Brendan Burgess (5 Mar 2011)

It seems to me that you are worrying unnecessarily. 

You seem have a good handle on your finances. You are able to keep up with the repayments.  You are "only" €50k in negative equity if I understand it correctly. Not worth exiling yourself from Ireland and wrecking your future for, in my opinion. 

Brendan


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## Greta (6 Mar 2011)

Agree with Brendan. It seems utterly crazy to run and leave yourselves with no home. I am beginning to get a feeling from reading this forum as if some people are panicking who really have no good reason to.

Historically interest rates of 15% on mortgages only happened for a very short period of time, on average rates have tended to be around 6-8% or so. The truth is, people need to live somewhere, and if interest rates go up, so will rents eventually, landlords aren't in business for nothing.

If you have a house and can manage repayments (as you can), then after so many years the mortgage will be paid off and the repayments will stop, and the house will be yours. That is never going to happen with renting.

I feel a few years ago people were jumping on the property ladder, when they should have waited and they are sorry now. But now some are panicking and trying to jump ship and run, and they will be sorry later.


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## Derry (6 Mar 2011)

True enough Gretta.


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