# Huge Mortgage Debt, Hopeless Situation



## bobbyboy (2 Apr 2013)

Hello everyone,

I would appreciate it hugely if someone could give me advice on how to deal with a really difficult situation my wife and I now find ourselves in. It is getting to the stage for us that it is hopeless, futureless. I don't know what to do.

The situation is this:

We bought in 2006 in South Dublin for €760,000 with a mortgage of €660,000. The value of the house is now €300,000-ish. 

I also bought an apartment in 2004 for €230,000. It's now worth about €120,000. It's rented out, but the rent is not covering the mortgage.

I was earning €100k from 2002 until 2007, when I was made redundant. My wife was earning €40,000 in that period, and she was also made redundant. We were both in the motor industry. I set up my own business, but business has gradually become more difficult since 2007, and I am now only taking a salary that is enough to put food on the table for my wife and our 2 young children. We do not go out, I can barely put petrol in the car (which I need for my business), I am lucky that my parents are slipping me a few Euro now and again to keep me above water. It is a real struggle to pay any bills.

I am paying interest only on both mortgages, but that has now become a huge struggle. I think I'm going to have to miss the payment on the apartment this month, as business is just too slow. I think our house payments will be next to go. We simply cannot afford it. I cannot get any social welfare if I close the business. We are desperate. My wife is on anti-depressants.

Is there anything people would recommend? Will the bank do any sort of a deal? It's Certus who I am dealing with (and they are very nice people, not their fault for the difficulties I am in). Am I looking at bankruptcy?

Thank you in advance.


----------



## Joe_90 (2 Apr 2013)

What are the o/s mortgages on the properties.   
What are the repayments on the loans.  

Could you move into the apartment and service that loan it should be manageable and then sell the house and deal with the bank on the shortfall.

You can't get blood from a stone.


----------



## Negotiator (3 Apr 2013)

First thing is to convince your wife not to worry so much about it. She's obviously extremely worried. I know you might say it's easy for me to say but trust me, I've been there!

Even if you stopped paying everything to your banks tomorrow, it would be at least about 2 years before you'd lose your home......and that's if you completely ignored them. So try your very best to relax just a little and you'll be able to deal with the situation with more vigor!

Here's my suggestion:

Request a 12 month moratorium on your  home and stop paying the mortgage on the investment property altogether. Treat that separately almost. 

Then you will quickly regain a decent level of income that is enough to get by without such a struggle. You will feel better straight away by just taking this step! You will also be demonstrating to the bank that you are a distressed borrower and that they need be realistic in their demands. 

Then start discussing long term options like split mortgages etc. The  new insolvency bill should sort you out long term so don't suffer in the short term.

If you can provide more details of your loans and lenders etc then you should get more suggestions here.


----------



## Bronte (3 Apr 2013)

bobbyboy said:


> , and I am now only taking a salary that is enough to put food on the table for my wife and our 2 young children.
> We do not go out,
> I can barely put petrol in the car
> I am lucky that my parents are slipping me a few Euro now and again to keep me above water. It is a real struggle to pay any bills.
> ...


 
Hi Bobby and welcome to AAM. I hope things are a little brighter for you this morning. It looks from what you've posted that your mortgages are unsustainable. This is going to be very difficult but you're going to have to default on the apartment this month. And you're going to have to stop worryng about doing so. The stress to everybody is not worth it.  In addition you have to learn to prioritise. Food and utilities are more important than mortgages. 

No matter what happens you will have a roof over your head. It may not be the house you are currently in but there are plenty nice properties to rent and ultimately even if not entitled to social welfare if you have no income whatsoever and no assets you are for sure entitled to social welfare.

As you've not posted any full details it's difficult to give any financial advice, but on thing for sure, your family is more important than what you owe the banks, and you and your wife need to realise this and act accordingly.  Best of luck.


----------



## WizardDr (3 Apr 2013)

@bobbyboy

First review the rental that you are receiving. It should be at least 8% of the current market value. Is it? That is step 1.


----------



## ClaireM (3 Apr 2013)

Have Certus written saying your mortgage on your home is unsustainable? What have they suggested?

 If the mortgage on your home has been found unsustainable get your name put on your local authority housing list now.


----------

