Is it possible to hand back keys?

B

Billy

Guest
Hi,
Have been reading lots of posts over past few days so thanks for all the info. Would like to ask for advice/ opinions if possible....
I have €210k left on my mortgage for a house I bought 8 years ago. In today's market I would be lucky to get 130 for it.
I am really struggling financially at the moment. I have a good Job (secondary teacher) but with the mortgage repayments of 1100 I seem to be running a loss every month. I'm a single man and have had previous had lodgers but the house is in such need of refurbishment at the moment I don't feel I can rent it. And I dont have the savings to do it up because all my cash has been going into the mortgage.
I've come to the point where I just want to walk away from it. I don't like the house, it needs a lot of work (double glazing, new oil tank, bathroom etc) and the estate it's in has become very rough. I just want out of it. Im really angry because I've done it all 'by the book' - never missed a mortgage repayment, paid all loans etc and I'm living in a house I hate.
So I'm just wondering what are the options? Can I walk away and hand back the keys and go into negative equity? Will they chase me for that 80k or whatever? If yes how many years will I be 'bankrupt' or is that what will happen?
Or if I do choose to sell that house and buy another can I take the negative equity with me? Or would that even be an option....
Thanks in advance...
 
Billy, the bank will chase you for the remainder even if they let you sell as they will always get their money the greedy B's but you could always go the bankrupt route via n.ireland!
also did you ever think about leasing your house out to the local authority?
 
I don't think it's great advice to suggest going to NI to go bankrupt - the OP has a teaching job here so he would have to give that up to go and live in the North - and I suspect it would be difficult to get back into teaching here with a gap in the cv. And bankruptcy is not a route for 'can afford but don't want to'. If the OP bought 8 years ago he should be a good few years into the teacher's salary scale, probably on 40K+ which is 2,500+ per month - so I can't see a bankruptcy court agreeing that 1,100 on a mortgage is not affordable.
OP, consider completing and posting the money makeover template - there are usally good suggestions for managing money better.
 
Thanks for the replies. I don't think bankruptcy will be an option for me so as I love my job (very lucky as I'm probably one of very few).
Martindfs I know you have said the banks won't let you off with a penny but what would the possibility be of reducing the negative equity? Or even selling up and up scaling? Would I need a deposit for another house?
Orka, as regards budgeting I've filled out all the mabs forms so hopefully that will improve. I guess at the moment I'm just feeling very frustrated as you must be battybrennan!!!
 
billy, chances are slim as we all will have to live with it unfortunatley. although if we become politicians in the future youd never know as mr wallace shown us. why not try to lease your home out to the local authority. i know plenty of people who have done it over a 10year lease and the LA will maintain the property
 
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