Don’t worry guys our Central Bank is going to look after you with their big plans to allow negative equity Mortgages.
(Just as long as you are a ”well heeled” member of their inner circle)

These ”Good Citizens” have created this little get out of (the negative equity) jail card, so that their cronies (and themselves) can buy the house of their dreams, at a fraction of its distressed value, from their receiver friends (and family members), leaving their negative equity behind and making huge profits.

And have now made it even it look ”legal” to ”Joe Public”.

However as Karl Deeter said the yesterday on The Pat Kenny Show the banks have been doing this for a longtime now, but for some reason have kept it to themselves.

Is this where our Bank Bailout money is going?

Mr D4: ”Oh shit my mortgage is €3 million and my house is only worth €2 Million.

Mr D4′s Banker Chum: Don’t worry mate I have a nice repo on Ailsbury worth €8 million that we can sell to you under the counter for €2 million.

Mr D4 :But what will I do with my old gaff and mortgage?

Mr D4′s Banker Chum: Flog yer old gaff off for €2 million and we’ll give you a new €5 or €6 million mortgage so you that wont be short.

Mr D4: Are you sure that is o.k.

Mr D4′s Banker Chum: No Worries Mate, we have tons of money,
F@@king Stupid ”Reckless” Joe Public has bailed us out to the hilt and Noonan has told us not to lend a penny back to the soft F@@ker.
I think ts time for another interest rate rise anyway.
Lets try and starve the F@@kers out of it!!

Spare rooms? Doesn’t that make you realise you bought too much properly?!

Danny did it not dawn on you that people buy with intention of having a family in the future, but haven’t had said family yet…?

You mean people got greedy now they need bail outs from the government thusly those that didn’t get greedy, is Jenny paying tax on that income?

How do we know this posters kids have not grown up and moved out?

Define greedy… I bought a four bed house in 2006, my wife and I both work full time and pay crèche fees, bills, mortgage etc… never missed a bill. So am I greedy? If the answer is no, and suddenly we become unemployed next year, am I then greedy? Idiot. And to the other chaps question whether Jenny’s kids may have moved out, it’s possible, but unlikely given the demographic that reads and posts here.

Oh and mr maxwell, we had no kids when we bought the four bed, have one now though. Greedy me!

Gordon my children have grown up and moved out; and from what I’ve read of Shanti’s comments, she’s not in springtime either (no offense Shanti – I love your comments and perspective, you sound like you’ve lived a very interesting life) ;-)

I have a question though – If 9.2% of mortgage holders are in some kind of trouble, does that mean that 90.8% are not?

Thank you Sheila :) Not sure what age springtime ends at though so you may be surprised! Not old enough to have adult kids anyway!!

With regards your question though, I think this percentage only refers to those who are 3 months plus in arrears and doesn’t count those who are 1 or 2 months behind – I’m not sure if we know what that figure would be..

Have to say though, my sisters family were hit by redundancy and have their mortgage to pay, there’s 5 kids (incl twins) and bills and while they struggle – their mortgage is paid first. On €450 per week between the 7 of them that’s a pretty tight squeeze. They’re all school age too..

On the flipside, not everyone over 90 days in arrears is actually unable to pay. A good friend works in mortgage collections, and the majority of people she deals with are people who don’t pay their mortgage but spend lavishly on their credit cards (with the same bank). Mind you, she also only deals with people who haven’t been paying for quite some time.

This is certainly not the case of all those in arrears, many are genuinely struggling, but as we can see – the vast majority are doing their utmost to honour their responsibilities and pay their debts – even if it does mean tightening up on other things.

cheer
s Shanti; I’m obviously not remembering all your previous posts correctly ;-) suppose it’s a senile moment lololol

Mr Maxwell just so you know you dont have to pay any tax on income recieved by renting out rooms in your house as long as it doesnt exceed over 10,000 a year.

Mucho respeto dude. Bull by the horns and all that.

Its been far from easy, in many respects we consider ourselves very lucky but I certainly wouldn’t wish this experience on anyone.

When I went through my redundancy in September 2011 I was shocked to see just so many people I worked with were just so layed back about finding another job, while I had secured three interviews within days and was offered two jobs others were not even attempting to update their cv’s.

Of course this has somewhat changed for people now, the holiday is over and many of these people are realising that they now need an income to live (not just a lump sum payment) and a job so they don’t go insane from sitting at home all the time.

Barry what you say is so true: saw the same with my own redundancy in 2010. However many people were so scared of being laid off they left for other jobs long before the redundancy came so they got no lump sums, so I guess it works both ways.

Well done on your perserverance and exquisite timing. But remember, the investment reward in buying a house is that one day you will not have to pay rent or mortgage. Do not fall for the capital gains promise. Values go either way and gaining or losing is about timing. For most of us the capital benefit only occurs when we downsize.

Ah… the good old “rent is dead money” meme. Don’t you realise that interest is “dead money” too?

Renting is the exact same thing as having an interest-only mortgage. Mortgage-holders will only own the house if they repay principal on top of the interest each month. A renter who sets aside the same amount of money each month would be in the same financial situation in 30 years.

no – they’re up to date with contractual repayments. big issue though for struggling first time buyers and rented properties cos these are only short term arrangements.

Thank Rob, was asking because quite a few people I know are in these arrangements which I think masks the true extent of the problem.

ehhh….. do you follow the news much??

Go to any district court sitting and see the amount of people been brought to the court(for personal loans) and watch the judge side with the person who has engaged with the bank and openly admitted their ability to pay a certain amount each month. In one case I was listening to the bank wanted €300 a month and the person submitted a means test where they could pay €50 a month so the judge gave the order for €50. Also cases where there is no ability to pay the judge put a stay on the order until the persons situation improved however the judge said that if they failed to inform the bank of any good change in their circumstance the full order would be made against them

Yeah also in response to that Gerry, insome circumstances judges will also make a NIL order in extreme cases if the debt is unsecure and the person is question is way over their head with secured loans. Judges can sometimes be the saviour of debtors, because once you get to the means tested stage of a hearing, a judeg is going to be pragmatic and set aside any request from the bank or creditor.

Thanks for the info, I`m not living in Ireland at the moment so I get my news fro Journal.ie