Evening All,
Just want to explain my situation and would like peoples opinions as to what I should or shouldnt do!
I bought a house for 305k in Nov 2007 with my best friend of 20 years at the time. The monthly payment on the mortgage was approx 1400pm. The mortgage was approved based on my earnings of 30k and his earnings of 50k. The house is based in Kildare and in negative equity. I'm based in Dublin as is my job & family.
Everything seemed to be going well until my friend lost his job. We rented out the house within a month to an absolute nightmare of a tenant who wrecked the place. My friend then decided after the stress of it all that he wanted nothing to do with the house anymore and was moving out and couldnt afford to pay the mortgage.
Me being a low level bank employee knew that my credit history would be affected if the full mortgage wasnt repaid each month so I took over the mortgage payment. He said he'd sign what was required of him so that he could be rid of the house. Not so easy though, as the bank would not allow me to take him off the mortgage.
Anyways so its a few years later and I'm struggling, big time. The mortgage has gone into arrears by a few months due to a combination of things such as bad luck, nightmare tenants, rental arrears as well as my own personal debts. The bank have since reduced the mortgage down to 770 pm for 24 months which is amazing. I have rented out the property for 650pm so at the moment I only have to contribute 120pm towards it. The problem for me is that when I recieved my letter from the bank outlining my new payment it states that when the 24 months are up, my mortgage payment will be higher than what I was originally paying to compensate for the 24 months were it was reduced. So although at the moment things seem to be going ok I feel now that I have just put off the inevitable debt.
As a bank employee I have not recieved a pay raise, commission or a bonus in 4 years and it will remain that way for another few years. So when the 24 months is up I will not be in a better financial position to take on this debt. Some people are probably saying "poor banker... got his just deserts" but please bear in mind before you comment that I work on the phones, entry level position and have no say or input into the workings of the bank. I saw this house as a great way to get a foothold on the property ladder.
Numerous people have told me to sell (at a loss), emigrate or just post back the keys. Its not in my nature though to run from a debt that I knowingly entered into but I have tried and tried to make this work but with a net wage of 1650, a personal loan of 318pm and a credit card debt of 124pm and the mortgage (bearing in mind that I have to give my parents something for still living in their house at 30) I am at my wits end. I see no way out!
Any constructive advice?
Just want to explain my situation and would like peoples opinions as to what I should or shouldnt do!
I bought a house for 305k in Nov 2007 with my best friend of 20 years at the time. The monthly payment on the mortgage was approx 1400pm. The mortgage was approved based on my earnings of 30k and his earnings of 50k. The house is based in Kildare and in negative equity. I'm based in Dublin as is my job & family.
Everything seemed to be going well until my friend lost his job. We rented out the house within a month to an absolute nightmare of a tenant who wrecked the place. My friend then decided after the stress of it all that he wanted nothing to do with the house anymore and was moving out and couldnt afford to pay the mortgage.
Me being a low level bank employee knew that my credit history would be affected if the full mortgage wasnt repaid each month so I took over the mortgage payment. He said he'd sign what was required of him so that he could be rid of the house. Not so easy though, as the bank would not allow me to take him off the mortgage.
Anyways so its a few years later and I'm struggling, big time. The mortgage has gone into arrears by a few months due to a combination of things such as bad luck, nightmare tenants, rental arrears as well as my own personal debts. The bank have since reduced the mortgage down to 770 pm for 24 months which is amazing. I have rented out the property for 650pm so at the moment I only have to contribute 120pm towards it. The problem for me is that when I recieved my letter from the bank outlining my new payment it states that when the 24 months are up, my mortgage payment will be higher than what I was originally paying to compensate for the 24 months were it was reduced. So although at the moment things seem to be going ok I feel now that I have just put off the inevitable debt.
As a bank employee I have not recieved a pay raise, commission or a bonus in 4 years and it will remain that way for another few years. So when the 24 months is up I will not be in a better financial position to take on this debt. Some people are probably saying "poor banker... got his just deserts" but please bear in mind before you comment that I work on the phones, entry level position and have no say or input into the workings of the bank. I saw this house as a great way to get a foothold on the property ladder.
Numerous people have told me to sell (at a loss), emigrate or just post back the keys. Its not in my nature though to run from a debt that I knowingly entered into but I have tried and tried to make this work but with a net wage of 1650, a personal loan of 318pm and a credit card debt of 124pm and the mortgage (bearing in mind that I have to give my parents something for still living in their house at 30) I am at my wits end. I see no way out!
Any constructive advice?