# Financial Mess - Need Help Please



## Alwyn (31 Jan 2012)

*Age:*
44

*Annual net income from employment or profession:*
€14,400

*Type of employment:*
Self Employed

*Rough estimate of value of home*
Mortgage €380,000  Current Value:  €190,000

*Other borrowings – car loans/personal loans etc*
€180.00

*Savings and investments:*
No savings.  Land that is in negative equity.

*Do you have a pension scheme?*
No

*Do you own any investment or other property?*
Yes.  Land, value approx. €60,000.  Mortgage approx €115,000.  Interest rate 2.1%.  Mortgage on land is approx. €210.00 per month.

*Ages of children:*
None

*Life insurance:*
Yes 

*What specific question do you have or what issues are of concern to you?
*Neither my home loan provider or the investment provider will allow me sell either property or land as both are in negative equity. I am avoiding bankruptcybut as you can see the figures are looking dismal.Also just to mention I am in €21,000mortgage arrears. 

*Budget*
600.00   Rent/Mortgage       (Reschedueled payments under marp agreement) 
50.00 Bord Gais       
40.00 ESB
20.00 Mobile phone
180.00 Loan
230.00 Food
60.00 House Insurance
15.00 Life Insurance
210.00 Mortgage on land

*Income*
1200.00 Salary


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## Bronte (1 Feb 2012)

You actually haven't asked a question.

Firstly you cannot go bankrupt in Ireland.  Your figures do not add up, your outgoings are €1405 but your income is €1200?

Your house insurance at €720 looks high?


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## 44brendan (1 Feb 2012)

You need to negotiate seriously with the Bank on selling these assets. Given your financial situation you are in a strong negotiating position here. Unless the Bankers you are dealing with are inheritently stupid (not unlikley), then they should be delighted with your offer to sell the assets. Given your income, if they continue playing hard-ball just stop paying them anything and let them do their worst. As you have a minimal income and no other assets you cannot afford to service this level of borrowings. Set down your offer and cashflow in writing to them.


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## Alwyn (1 Feb 2012)

My business was once thriving, now I am barely making ends meet.

I'm finding it very difficult to find employment but agree I would be better off on benefits with the way things are looking.

My sister in law has offered to build a small cottege on the investment land with the hope that I can move in.  

I am considering handing back the keys on my main residence and moving onto land all going well.  As main residence is in negative equity I would accept the shortfall as a personal loan??

Bronte, I agree insurance is very high.  This was organised by the bank.


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## elcato (1 Feb 2012)

> Yes.  Land, value approx. €60,000.  Mortgage approx €115,000.  Interest  rate 2.1%.  Mortgage on land is approx. €210.00 per month.


This seems really low. Is the term a very long one or are you paying interest only ?


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## 44brendan (1 Feb 2012)

Alwyn said:


> .
> 
> My sister in law has offered to build a small cottege on the investment land with the hope that I can move in.


 
Unwise. You state that this land is charged to the Bank. If you build on it, any property will also be included under that charge. Given the amount of negative equity on the land, you should re-consider any build on it and think seriously about selling it and reducing the associated loan.

Don't pay the insurance premium if you can't afford it! You need financial advice before making any decisions.


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