# 57 year old  in debt



## Lilywhite (9 Jul 2009)

Having never been in debt in my life I now am heading that way. Have 2 investment apts and can not sell either of them. Paid 321,000 for on in 2006 and my freindly broker encouraged me to buy the other in 2007 for 322,500. then boom!! and we all know the rest. Now both worth around 285  Hubby is now 60 and would like to think about retiring, and my own job is getting too much for me. The firm I work for are talking about paycuts and possible redundancies. Husband says we'll be both okay while we're still working, but I cant sleep at night! Both apts rented and would sell to tenants but they cant get mortgages. We dropped both lots of rents so we're paying the balance each month (around 600e). Basically, cant give them away...cant keep them.
Any thoughts advice would be welcome


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## Ghodadaba (9 Jul 2009)

*Re: 57 year old first time user in debt*

Sorry to hear about your difficulty. I hate to break it to you, but if you paid around 321k/322k in 2006/2007 for them, they are actually both worth a lot less than 285k (hence why you can't sell them). They are both probably worth closer to 200k each. I'm not trying to frighten you, but that's the reality of the situation.

Have you got other savings or a lot of equity in your main home? If you are 57 and your hubby is 60, then you may have your mortgage as good as paid off, which probably puts you in a reasonably strong position. While you have tenants, you don't have too much to worry about. And your husband is right, while you are both employed, there is probably little chance of you getting into difficulty. So try not to worry too much.

There is a standard way to present your financial information for this forum, which you will find here http://www.askaboutmoney.com/showthread.php?t=61289 . If you fill out your information in this format, you will get much better advice.

Good luck.


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## Lilywhite (9 Jul 2009)

*Re: 57 year old first time user in debt*

Thanks for the answer Ghodadaba...now am more worried that ever!!!!


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## mtk (10 Jul 2009)

i have to agree with ghoda.the market is down 40% from peak - not sure why the main measures do not pick this perhaps a a question for another day.
On a brighter note will you not both get state pensions at 65/66 and presumabely company pensions as well so are you really in such bad state ?


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## Lilywhite (15 Jul 2009)

Have had an offer on one of the apts...much lower then we'd hoped, but am very tempted to "cut and run". Or are those green shoots really appearing?


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## lmipwis (16 Jul 2009)

Lilywhite said:


> Have had an offer on one of the apts...much lower then we'd hoped, but am very tempted to "cut and run". Or are those green shoots really appearing?


 
You need to run the numbers. If the offer will clear your mortgage, I'd say grab it with both hands and make things as smooth for the buyer as you possibly can - Move fast, light a fire under your solicitor, get contracts signed and agree closing date!

If it is under your current mortgage value, you will need to contact your bank. You'll need their permission (in writing) to sell at under outstanding mortgage value and will need to give them the difference. If there is a gap, don't automatically say no to the offer. Run the numbers, look at your savings, think about where you think property prices are going, think about how much you value easy sleep at night, think about impact to your life - is the outstanding amount worth it? Don't take more than a week replying to the offer. Suggest you instruct the EA to tell 'buyer' that you appreciate their offer, are considering it and will be back to them by x date.

Either way, you need to be very prepared for offer not to end up in sale. I've heard the figure recently that 2 out of 3 'sale agreeds' fall through - not at all sure how true this is.

I wish you the very best of luck.


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## Mr DT (16 Jul 2009)

Lilywhite said:


> Have had an offer on one of the apts...much lower then we'd hoped, but am very tempted to "cut and run". Or are those green shoots really appearing?


 
The recession is not going to be over until 2011, and they have changed their opinion several times so go with 2012 for good measure.

NAMA are taking a economic cycle point of view with respect to valuing toxic loan stock. So, taking this assumption you could argue that prices won't return to the peak 2006 price for the next 15-25 years. This is no good to you give your time of age.

When green shoots appear I believe they will be of the very slow growth nature. If you can cut and run, do it!!


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## AlbacoreA (16 Jul 2009)

I'd sell it if it were me.


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