Hard-hit borrowers see homes slip away as mercy pleas fail

In the Indo

Jesus H. The buyer values it, not the seller. If she can’t sell it for 1 million then it is not bloody well worth 1 million.

So her husband doesn’t pay his share of tax either ! She can well sell her house at any stage. Just lower the price to market value. :unamused:

therein lies the problem - Q - What is a house worth? A. Whatever the banks loans are…

If the bank takes your house and can’t sell it for enough to recover the mortgage can they come after you for the rest, or are you away clean?

If you are away clean it’s surely better to have your house repossessed than selling up in NE and being left with debts?

Loans are full recourse. You never get away clean.

you can renegotiate down.

It is essential to show the courts willingness to come to a settlement. So what you do is write to the bank early saying you can’t afford the loan and offer half or whatever you can afford. If they refuse stop paying but keep sending offers renegotiating. put some money aside.

when it comes to court the Judge will see a poor beleagured debtor who tried to work with the banks but who is being shafted. The bank willm probably settle befor then at a discount . If you don’t keep communicating the banks and courts will throw the book at you.

Good legal advice ewd.

Try to keep as much as possible in writing. If a bank official calls you, and you make an offer to renegotiate/settle, make sure you keep a contemporaneous note or, even better, follow up the call with a letter to the official detailing the contents of your conversation.

The worst thing you could do if you can’t pay your mortgage is to stick your head in the sand ignoring bank letters and phone calls.

Note to all

I’m not a lawyer!!!

Seriously though if you owe the bank money you can’t afford repayments on, you have to stop digging as soon as possible.
The sooner you tell the banks you can’t afford it is the day the negotiation over what they’ll settle for starts .

No sign of Karl on Newstalk!!!

It’s nothing to be ashamed of you know! :mrgreen: Anyway, sensible lawyers don’t generally give free legal advice…it tends to come back to haunt you.

Good luck to Karl/MB!

I wonder how many of these are actually buyers pulling out due to fear of buying in a falling market and using the credit crunch as an excuse?