Hi all,
I moved house in 2008 for job reasons and sale fell through on old house, which is now "an investment property". It's about 130k in negative equity now. Rental income is €700pm and we're on interest only of about €900pm. However, I've lost my job and we can't afford €200 shortfall now, never mind whatever capital payments will be when they decide to end interest only.
We don't want to move abroad but life is miserable because of this albatross around our necks. We also love our new home and don't want to lose it or move.
When we were only 50k in negative equity on investment property I asked lender could we sell it and pay them difference with a term loan. They refused. Now, it's much deeper in NE as I'd anticipated.
We see no light at the end of the tunnel as prices will never rise (in my opinion) to the level we'd need to break even on a sale.
My question is, could we threaten a move to UK (which is possible due to no employment opportunities here)? Or will this set alarm bells with lender and could they instigate bankruptcy proceedings here? Basically, what advantages do we have in negotiations, including the upcoming Personal Insolvency Laws?
PS. We've never missed a payment on our Home but are a few hundred quid in arrears on NE property.
I moved house in 2008 for job reasons and sale fell through on old house, which is now "an investment property". It's about 130k in negative equity now. Rental income is €700pm and we're on interest only of about €900pm. However, I've lost my job and we can't afford €200 shortfall now, never mind whatever capital payments will be when they decide to end interest only.
We don't want to move abroad but life is miserable because of this albatross around our necks. We also love our new home and don't want to lose it or move.
When we were only 50k in negative equity on investment property I asked lender could we sell it and pay them difference with a term loan. They refused. Now, it's much deeper in NE as I'd anticipated.
We see no light at the end of the tunnel as prices will never rise (in my opinion) to the level we'd need to break even on a sale.
My question is, could we threaten a move to UK (which is possible due to no employment opportunities here)? Or will this set alarm bells with lender and could they instigate bankruptcy proceedings here? Basically, what advantages do we have in negotiations, including the upcoming Personal Insolvency Laws?
PS. We've never missed a payment on our Home but are a few hundred quid in arrears on NE property.