House/ Mortgage question

[illdecide]

Don't know where you're located MG but here it would likely end up being short sold with the bank likely eating the loss
if and only if both parties can prove that they can no longer make the payments, they would have to pay tax on the
amount that the bank is out as earned income though, otherwise they're on the hook individually for what's owed to the bank after the short sale.

That is the case in the States, basically if you don't have the money you just hand back the keys.

Not the same here though, in Ireland the bank can sell the house and come after you (both in this case) through the courts for the rest (car, savings etc).

On the plus side there has been a lot of talk (I know) during the bank guarantee and re-capitalisations of banks being told by the State to be very lenient in hardship cases. Go and talk to the bank first and look for some concessions. If no joy there you may have to talk, ridiculous as it sounds, to a politician.

The problem with that though is the bank won't talk about concessions to you unless you're 2-3 months behind unfortunately
no doubt in a attempt to weed out the scammers.....like Illdecide 

Easy you...

It would be harder to screw the banks now as the mortgages they hand out now are rare and better thought thru but 2-3 years ago when they were giving money hand over fist to any balloon who wanted it, they are the ones that could screw them with the big amounts they borrowed and no assets to back it up

[pintsofguinness]

I would imagine that they would also deduct any early resettlement penalties, if they were in place. I watched a show on rte a few weeks ago and one guy was being quoted something like 40k penalty to switch from a fixed interest account to a tracker.

Dont blame the bank, blame the people they borrowed the money from, seems to be the stock answer from the financial institutions

In fairness it must have been some mortgage! Certainly over half a million!

[Bensars]

Cant recall. It was a  young couple. Then again 350k-500k euro wouldnt have been unheard of a few years ago.

The same guy had been through the ombudsman as well, but to no avail. His complaint was not about a penalty but the severity of the penalty

[saffron sam2]

I'm surprised ziggo hasn't been on here looking for her mobile number.

[Bogball XV]

I'm surprised ziggo hasn't been on here looking for her mobile number.