# can't pay mortgage, can't sell house



## Laaragh (3 Aug 2008)

Age: 36
Spouse’s/Partner's age: 36

net income from employment or profession: 3300/month
income of spouse: child benefit, but these go into savings for the children

Type of employment: private sector
In general are you spending more than you earn or are you saving? spending, though we live on the bare minimum

Rough estimate of value of home it's down at 460,000ish
Amount outstanding on your mortgage: 435,000
*What interest rate are you paying? 5%*

Other borrowings – mortgage on two investment properties - 270,000

Do you pay off your full credit card balance each month? yes
If not, what is the balance on your credit card? 

Savings and investments: 98,000 in funds, from which we take 1000/month

Do you have a pension scheme? my wife had it via work, but stopped paying into it when she gave up work after our children were born

Do you own any investment or other property? two, one is currently rented for 1300/month the two properties are worth about 400,000

Ages of children: 1 year old twins

Life insurance: yes


*What specific question do you have or what issues are of concern to you? *
*other outgoings:*
*home&mortgage insurances 110/month*
*car insurance/tax/petrol 300/month*
*VHI 140/month*
*Internet/mobils/TV licence 150/month*
*gas/electricity/waste 120/month*

*two investment properties have been up for sale for over a year and they are not selling, my wife cannot go back to work, as her salary would not pay the kids' creche fees. Our home would only sell with negative equity. what can we do to be able to get out of this everyday financial misery?*


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## ClubMan (3 Aug 2008)

Laaragh said:


> income of spouse: child benefit, but these go into savings for the children


If you have cashflow/debt repayment issues then why are you saving?


> Do you own any investment or other property? two, one is currently rented for 1300/month the two properties are worth about 400,000


Why is the second not rented? Are the mortgages interest only?


> *two investment properties have been up for sale for over a year and they are not selling*


Reduce the price if you want to get them moving?


> *what can we do to be able to get out of this everyday financial misery?*


Your own home and two investment properties? Misery? Er - am I missing something here?


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## Brendan Burgess (3 Aug 2008)

I think you need a bit of perspective. The heading on your question is odd "Can't pay mortgage...". Why not? 

You have €90k in funds and you are saving the children's allowances. Use this money to pay off the loan on your home or to fund your repayments. 

The concept of negative equity is meaningless when your total assets well exceed your total liabilities. 

Your exposure to property and your level of borrowings is too high for your salary, so you should sell at least one property.  But you don't need an emergency sale. You can use your savings to avoid having an emergency sale. 

I will come back to the heading of your question. Make sure that you do actually meet your repayments, so that you don't get a bad credit record.


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## Mpsox (4 Aug 2008)

you said the 2 properties which have been up for sale for  a year and are not selling. Why not? Is it the condition of the 2 properties, your EA not being up to the job or are they priced too high. Property market has changed and you're not going to get now what you would have got 2 years ago.

you also seem to indicate one of the properties is not for rent. Again, why not. It's not generating any income at the minute


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## ontour (4 Aug 2008)

Laaragh,

People don't have to be heavily in debt or negative equity to have money worries. I am sure even Dolores McNamara in Limerick has money worries !

The most important first step is to see if you can get the investment properties to pay for themselves, if not - get rid of them as they will only be a source of continued stress.  

You say that if you sell your home, you will only be able to sell with negative equity but above you say that it is worth 460 and the outstanding mortgage is 435.  Is it really worth 460 then?  

I believe that your saving of the child benefit is very well intentioned however if you are very stressed at the moment, this is not going to make you a happy chirpy parent.  In the greater scheme of things it is probably far more important  to your children that you are a happier, more relaxed parent than someone who can give them a few grand in 20 years.


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## SarahMc (4 Aug 2008)

ontour said:


> Laaragh,
> 
> People don't have to be heavily in debt or negative equity to have money worries. I am sure even Dolores McNamara in Limerick has money worries !


 
Maybe, but to say "can't pay mortgage / misery" is just a case of putting on the poor mouth when children's allowance is being put away, and there is almost 100K in savings and 2 investment properties.

Its not even a case of asset rich and cash poor.
Asset rich
Cash rich

Wheres the misery?


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## ClubMan (4 Aug 2008)

SarahMc said:


> Maybe, but to say "can't pay mortgage / misery" is just a case of putting on the poor mouth when children's allowance is being put away, and there is almost 100K in savings and 2 investment properties.
> 
> Its not even a case of asset rich and cash poor.
> Asset rich
> ...


My sentiments exactly (above). And I had even overlooked the €90K in investments!


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## Plek Trum (5 Aug 2008)

ClubMan said:


> My sentiments exactly (above). And I had even overlooked the €90K in investments!


 
Me too.. in all fairness!


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## cromulent (5 Aug 2008)

Laaragh said:


> *two investment properties have been up for sale for over a year and they are not selling*


 
reduce the price then.


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## Thrifty1 (5 Aug 2008)

You say the mortgages on the 2 investment properties are €270k and they are worth €400k, that means you can drop the prices by €130k and still break even, or am i missing something?

Why cant you rent the other prorperty?


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