offered but cannot afford split mortgage

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messedup

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We have been offered a split mortgage by aib they have agreed to park 30000 euro and extend term on loan .We know we cannot afford this and have had enough of living this way .mortgage approx. 260000 house is worth 120000euro . We have stopped paying the mortgage
and are going to emigrate away from Europe .I have been suffering from depression for the last 2 years and can take no more of the constant pressure we really have tried to pay the mortgage. I also offered the house back and a settlement but the bank will not come to the table. (The bank wants us to live on less than the guideline amount by 350 per month so my questions

1 If we just leave what are the chances of the debt following us later

2 will the debt be enforceable in Australia

3 should we move to the Uk and go bankrupt first

4 could Aib sell the debt to a vulture fund and are they more likely to
chase us for the money abroad

5 should we just hand the keys back
 
Regarding the 350 euro it is because we have been paying for a car loan of which is required for my wife's job when it finishes they want the money .The problem is we have been living like monks to pay it now they say we can carry on like this but is having serious impact on our state of minds.
we purchased in 2005 and had no intension of leaving Ireland .We cannot wait to get out now due to the constant pressure and living like we do
 
Who is the car loan with?

Have you tried to reschedule it?

You should not let mortgage difficulties force you to leave the country. If you want to leave for work reasons or family reasons, fair enough. But the legislation is in place now to allow you to go bankrupt and exit in 3 years or go for a PIA and, possibly, exit a lot earlier.

Brendan
 
Brendan Burgess said:
Who is the car loan with?

Have you tried to reschedule it?

You should not let mortgage difficulties force you to leave the country. If you want to leave for work reasons or family reasons, fair enough. But the legislation is in place now to allow you to go bankrupt and exit in 3 years or go for a PIA and, possibly, exit a lot earlier.

Brendan
Click to expand...

Messed up;
Brendan is giving you very good advice.
Please ensure you DO contact the IMHO , you WILL be surprised how things can get sorted.

Remember AIB are no fools and will end up being pragmatic
, consider this.
1. They stand to lose K140 on this.
2. If you go bankrupt they will lose K140.
3. If you go bankrupt ,you are 100% free in 3 years.
4. Because of better legislation , you can now exit this nightmare and get on with your life.
5. With IMHO , I would think AIB will also get the best option available.
From your thread , please understand , this is only an issue over what you can afford and what Bank can get.
You didn,t kill anyone!
I would be fairly sure IMHO will give you the best options.

Do not let this force you to leave.
 
There are certainly easier ways of dealing with debt than emigrating. If that is your only reason for leaving the country you need to rethink. You need to appreciate that AIB and all banks cannot get blood from a stone. You pay what you can afford to pay and as long as you are living within the reasonable guidelines there is little that any ban can do against you. Why not take brendan B's advice and contact the IMHO.
Emigration is fine as a lifestyle choice or if employment opportunities are more favourable. But you do need to access all alternatives before making such a decision.
BTW there is very little threat of AIB pursuing you legally if you go to Australia.
 
Thank you everyone for all the responses

We have been offered this deal? via IMHO who told me aib want the loan money when it finishes which will leave us in this untenable situation.Because we have managed to live like we have .
We are now expected to carry on like this .When we contacted IMHO and handed in an sfs they agreed we could not afford to live below the guidelines and told us it was not right what the bank had offered us .They took over our case and then said we have to live below the guidelines because of the loan?
 
messedup said:
Thank you everyone for all the responses

We have been offered this deal? via IMHO who told me aib want the loan money when it finishes which will leave us in this untenable situation.Because we have managed to live like we have .
We are now expected to carry on like this .When we contacted IMHO and handed in an sfs they agreed we could not afford to live below the guidelines and told us it was not right what the bank had offered us .They took over our case and then said we have to live below the guidelines because of the loan?
Click to expand...

Quote {because we have managed to live like we have}
If I read this correctly
1. Because you are scrimping below guidelines , you get punished?
2. Because of loan for car (which wife needs) , you get punished?
3. IMHO said what Bank offered {was not right} ?
4. IMHO said you have to live below guidelines because of loan? Remember these are guidelines , not MUST do.

Suggest;
Look at Bankruptcy. It is not something to be feared but done well is a fair solution for all parties.
More importantly , it gives closure.
Ask IMHO to advise on this; if not go to any of the Personal Insolvency Practitioners.
 
The problem is if we go bankrupt in Ireland 3 yrs on top of what we have already been through is like a life sentence . I am from the UK so am more than happy to move back home we have no family here and if we go bankrupt no ties or house. I do not see any point in waiting around in Ireland anymore Is there any benefit to going bankrupt in ireland
 
There are a number of options open to you:
1. Apply for Irish bankruptcy;- Not ideal given the 3 year time frame and the fact that you do not appear to be tied to Ireland re family work etc.
2. Apply for UK bankruptcy:- Can be done if you wish to exit in 12 months and have a clean slate.
3. Hand the keys back to the Bank and rent: - Given the short account of your financial position there is nothing the bank can do against you unless financial circumstances improve in the short/medium term. Perhaps you have other creditors than the Bank or maybe not. Worst the bank can do is obtain judgement against you. They cannot register this against property you own as you will have handed back your PDH. They can apply to Court for an installment order, but if your description of your financial position is accurate they will not get one. I have being advising some friends/relatives in a similar position as yourselves (as well as working in the banking sector) and in most cases the Bank have not bothered progressing even for judgement. Banks are realists and in many cases (not all) are prepared to cut their losses when hope of recovering funds is not worth the effort of taking legal action.
4. Move to Australia/Elsewhere. Bank will sell the property and in the vast majority of cases write off the balance of the debt. The risk of being pursued abroad is not zero, but in circumstances such as yours it is extremely low.
 
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