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Ask Buachaill Your Own Question
Buachaill, Lawyer
Category: Republic of Ireland Law
Satisfied Customers: 10534
Experience:  Barrister 17 years experience
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I am thinking of handing back my house to the bank as I

Customer Question

I am thinking of handing back my house to the bank as I cannot afford full mortgage repayments -0 how does it work please
Submitted: 1 year ago.
Category: Republic of Ireland Law
Expert:  Buachaill replied 1 year ago.

1. There is no such thing as handing your house back to the bank in Ireland, as occurs in the USA. Under Irish law, you own the house. It is up to you to do what you want with it. However, you cannot simply give the house to the bank. You can allow the bank to sell the house on your behalf if you are behind on mortgage payments. However, if there is a shortfall upon the sale of the house, you will still be liable to the bank for any excess monies still owing on the mortgage, if you are in negative equity. So there is only really advantage in allowing the bank sell the house if it will clear the mortgage currently outstanding. Otherwise, if you are in negative equity, you are better off continue to live in it and pay some monies you can afford to the bank. If you are not in negative equity, you should seek to reach some debt arrangement with the bank. BAnks never like taking over a house if there is any prospect of repayment of the mortgage. So agree half payments for a period of up to three years.

2. Be aware also, that if you are in negative equity, that the major Irish banks are offering discounts of up to 30% on properties in negative equity so as to bring the debt in line with the property value. AIB Offers this as standard. Additionally, get yourself a debt negotiator if you wish to negotiate with the bank. One such negotiator in Dublin is Brendan Kilty SC. He will negotiate a discount on your behalf with a bank. Alternatively, try Ross Maguire SC in New Beginning.