Some Really Dire Situations on AAM

Some people have got themselves in a terrible mess with buy to let properties:

askaboutmoney.com/showthread.php?t=122862

askaboutmoney.com/showthread.php?t=122743

These are only the tip of the iceberg, I believe, and it will get a lot worse.

I’ve been banned several times from AAM so I can’t post there or even access the site. Why don’t they try to sell at least houses 1 and 2? Get rid of car etc. What’s Brendan saying I wonder? If he hadn’t censored and stifled debate that warned of this scenario it might have saved some of these people.
I don’t know how he sleeps at night. Wanker!

Sell property number one making a profit of EUR 110K
sell property number two making a profit of EUR 33K
Sell property number three capitalising a loss of EUR 45
Total surplus is EUR98K

Put this 98K against their oustanding mortgage on existing house so the new mortgage is 200K - 98K or 102K remaining on a house with a value of EUR250K, given that their mortgage now equates to only 40.8% of their remaining mortgage, pop down to Irish Nationwide and they will give them a great deal.
As far as I’m concerned they are in a better position than most people!

Yes, but are the values realistic? Would the houses sell for those values?

We have our own forum for these situations

here is an equally scary example ( no shite allowed in that particular forum )

viewtopic.php?f=53&t=24159&start=0

Why is he doing this? I saw one thread where he closed it off saying it was discussed already on someone that was in real financial difficulty. This kind of stuff makes me puke. I wish more people would log on here and ask for advice than AAM.

Ask your friendly neighbourhood mod to create a forum for this purpose.

As 2Pack alluded to above, we already have one:
viewforum.php?f=53

Sure there’s hardly a need for one with the “recovery” just around the corner!

Is this for real? Are mabs a business mediation service now?

Whats the LTEV on these ?

While not wanting to turn someones unfortunate situation into a stat or a leading indicator this kind of stuff comes to mind to me when I read people like Ken telling me there is very big pent up demand out there for property. As far as I can see there is very big fear out there bordering on capitulation. You take this ladies case, she says she doesn’t want people telling her about the options she doesn’t like the sound of, she just wants to hear from people who have experience with judges???. She states that the properties wouldn’t sell, and there is no market, and they haven’t had a sniff. Then she says one is an old house and there are newer ones in the area so it can’t sell because of this.
I’m sorry this woman finds herself in this situation, especially with a young family but the best advise she could get is to liquidate the two investment properties and take the hit. While the title of this thread is about really dire situations I don’t think this is. The woman is going to make a loss that will take years to pay off, she will have to add the loss to her mortgage on the PPR and might have to extend the term. That’s not dire, that a consequence of a choice/gamble that was taken.
The Irish mentality of “I couldn’t flog it for less than it cost/was worth” will strangle a lot of these folk much worse than if they accepted they bought into a bubble and NE in the absence of adequate cashflow is going to be part of their future for sometime to come.
That thread also shows up the anger that Nama will generate when people like the poster have to liquidate properties yet the builders go into nama. LTEV only works for those protected by FF. We are heading for a whole pile of pain.

I think you have a point here - over the past 10 years so many people seemed to think they had some unique entrepenurial skills and jumped all over the property bandwagon - yet when it comes to realising an investment loss and moving on most cannot accept this or are not in a position to do this because they have tied in their actual home or all of their income to their investments - this just proves what a bunch of amateurs were pumping the boom. A savy investor will rarely invest what they cannot afford to lose and understands when it’s time to cut your losses and walk away.

And it wasn’t just the ordinary man and woman on the street that thought they were canny investors, what about the developers? It seems that we had one massive dose of delusional fog doing the rounds.

The Irish property bubble will go down in History and should be included in Charkes Mackay *Popular delusions and madness of the crowds *updated edition.

+1 Mossey, but I think you should add the FF government who have had a 15 year delusion of grandeur and the banks as having had one of the longest running scams in the history of the state.

“Even if we could sell the thought of repaying 80,000 deficit to the bank and nothing to show for it is just unthinkable”

Now can you imagine someone who took a bank loan to buy shares and then made a loss saying such a thing ?

These so-called hard luck stories make my blood boil.
Despite the economic lunacy the posters stubbornly cling on to their properties regardless of the consequences.
They throw in the fact that they have kids.

Like that gives them carte blanche and we should cancel all the debts they ran up from effectively gambling.

These people will not sell any of their properties.
The only likely outcome is what happened that gobshite macho landlord on the RTE property expose back in March.
He hung on to all his properties until the bank forced him to sell them one by one.
Still dreaming of getting them all back - landlording is the only thing he has done for the past 20 years.
Heaven help the country if that is representative of gainful employ.

But property only ever goes up doesnt it, doesnt it? Oh shit." :open_mouth: :angry:

MOD Edit: For glee and etc.

Actually the programme was Prime time investigates Mon May 25th.
This link used to work:
rte.ie/player/#v=1048654

Amateur landlords seem to have an identical psychology.
They refuse to cut their losses.
They cling to false hopes of the market turning around.
(Even if it did they would still not sell)
Remember that guy Justin swearing an oath to fight to hang on to all “his” properties ?

If any are reading this:-
There will be no quick turnaround in Irish property.
Rents and asking prices will continue to drop for years to come.

Player only works for 4-6 weeks . After that you need Real Player

It is here around 20:30 mins in. He accomodated 150 people at the peak and has been in investment property in Prime D4/D6/D2 areas for 18 years with a peak value of €24m .

rte.ie/news/2009/0525/primet … 7,null,230

QFT :confused: