# advice re possible repossession case



## micro (16 Jan 2009)

Hi all,
not sure if this is the right place.

Posting for a friend so not sure of all details:
Ages: 26,29
Jobs: unemployed + barman
Mortgage: 500k 100%, now on interest only 1800 approx /month
dependants- 1 aged 18mths.
Other debt- car loan on jeep type car worth about 15k
Presumably CC's etc and usual HH bills

She is currently claiming dole but has been told to do BTW scheme which will result in lesser payment/week. They have been struggling for some time.
I have made a few suggestions:
rent room
sell house (can't negative equity)
rent house and apply to CC as tenants for time being (don't want to do this)
mortgage allowance- i didn't realise only available to CC tenants
MABS is their only other route that I can see. No point selling car as what it would get now wouldn't cover loan.

She has been looking for job but needs a salary that will cover bills and childcare, which is hard to find in her profession considering current situation (Auctioneer)

Any suggestions??? 
Thanks in advance!


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## jimbobman (16 Jan 2009)

how did an auctioneer and a barman get a mortgage of 500k. this is a typical example of what caused this credit crisis. they also have a loan of 15k on a car?? i know its late to say but they have been very careless with their finances

anyway  

1. cancel credit cards
2. reduce household bills 
3. get rid of jeep and buy car for 1k
4. go to bank and talk about mortgage


they are in real trouble and its possible they are going to default on their mortgage. i cant see how they will get out of this if she dosent find work and fast. it dont look good im afraid


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## micro (16 Jan 2009)

Hey thanks for response
They got orignally as he was bar manger (70k) and she was on approx 35k. Still ridiculous to lend 500k 100%.. but probably not unusual at the time.

Is there any help that they can apply for? I agree, the situation looks bad.
I also believe the kid is sickly so she might prefer to stay at home with the child.... then again, that's not going to pay the bills. 
What else could bank do in this situation? They are on a fixed interest rate at the mo and I think for another 2 yrs. Any way of refinancing if on interest only?
Cheers


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## BoscoTalking (16 Jan 2009)

stay at home and midnd another child and claim the income allowance for childminding perhaps?


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## micro (16 Jan 2009)

oh interesting- I will look up the income allowance and see what that is.
Thanks a mill


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## jimbobman (16 Jan 2009)

maybe the bank will take ownership of the house and rent it back to them. not sure really. they need to sit down with the bank manager and explain. didnt know bar managers earned 70k!!!!


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## micro (16 Jan 2009)

jimbobman said:


> maybe the bank will take ownership of the house and rent it back to them. not sure really. they need to sit down with the bank manager and explain. didnt know bar managers earned 70k!!!!


 
Thanks  neither did I .. I think (not for the first time) I'm in the worng profession!


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## so-crates (25 Jan 2009)

So is it a case of one income gone? Is the barman still earning €70k? Are they managing repayments now or are they already in arrears? I don't know about gettting the CC to house them whether that is feasible or not I couldn't comment but they need to address the "don't want to" approach. They have been foolish (no point in being soft - the credit crunch won't be). 

1) I am going to guess you have already covered with them the question but no harm mentioning it - are they claiming everything that they can?

2) Has she done any investigation into jobs that she can do from home (the classic being childminding)?

3) I am going to guess she is looking outside of auctioneering for work? At what income does working deliver benefit over being at home? (so where (income - child support) > (Jobseekers + benefits))

4) Have they spoken to their bank about interest only?

5) I think they should consider seriously selling the Jeep, even at a loss (assuming they can of course). The engine size on a Jeep is likely to be large so aside from the cost of the loan they are paying more in taxes etc.

6) Can he take on any extra work? I am assuming he is already busy evenings and weekends but he may have spare availability during the day.


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## Complainer (25 Jan 2009)

They should claim mortgage interest supplement immediately

http://www.citizensinformation.ie/c...-welfare-schemes/mortgage_interest_supplement

A friend of mine got €1100 per month on this scheme when he was unemployed for a few months recently.


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## Jack2008 (26 Jan 2009)

Complainer said:


> They should claim mortgage interest supplement immediately
> 
> http://www.citizensinformation.ie/c...-welfare-schemes/mortgage_interest_supplement
> 
> A friend of mine got €1100 per month on this scheme when he was unemployed for a few months recently.


 
They would both have to be unemployed to qualify for this and even then they might not get it.
The HSE has clamped down on all these outgoings recently! They would also pay it for a short time only.


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## kopq (26 Jan 2009)

As homeowners they won't be accepted onto a local authority housing list so that option is out I'm afraid.


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## micro (26 Jan 2009)

Jack2008 said:


> They would both have to be unemployed to qualify for this and even then they might not get it.
> The HSE has clamped down on all these outgoings recently! They would also pay it for a short time only.



That's a pity as I have just recommended this option to them.
I see no other whay out than for her to start work in any industry possible. 

Thanks for all your replies


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## Bronte (27 Jan 2009)

Can they not live on an income of 70K or am I missing something?  How much is that a month into their hands?


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## micro (27 Jan 2009)

He was working as bar manager on 70k but was let go and now re-remployed as barman earning in region of 40+, so I'm guessing that their joint income is about 50k. I know I couldn't pay a mortgage of 1800 on my salary, so I don't know how  they are managing!


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## Complainer (27 Jan 2009)

Jack2008 said:


> They would both have to be unemployed to qualify for this and even then they might not get it.
> The HSE has clamped down on all these outgoings recently! They would also pay it for a short time only.


Thanks for the clarifications..


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## Bronte (28 Jan 2009)

First thing they need to do is go talk to their lender.  If they can't make the repayments then they should sell the house if he can get a loan based on his salary to cover the negative equity.  What is the value of the house versus the mortgage.  I'm sure they can rent somewhere for a lot less than 1800 a month and have money over to pay a loan and some over.  It depends on the negative equity amount of course.  You suggested them renting, is there a market for rent at 1800 + a month?


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