Advice Needed - Take out loan or go for multiple credit cards to raise 40K to buy back home

CatAdams

Maybe I should find a private buyer before going to the bank with an offer, and start putting the sale through privately. I agree that if I spend 50K and then can't sell a plot I'm really going to be in hot water, again. Only thing is, if the bank find out about this before making any agreement with me, they will want the value of 3 saleable plots, not just the current one. Can you take out interest free money on CCs to value of 30K? I appear to have a current credit limit of 8K no problem.

CatAdams

No one will lend 30K with property at actual value as equity? Ie its . current market value of 165K?

CatAdams

It's a gamble aright. Could get me out of a hole and a hideous rental market though, we are all being squeezed and there is very little regulation of rental increases etc. Oh to have my own house back again...

CatAdams

Yes only way would be to borrow against property value, but not sure how to do that without Irish bank finding out, or if that's even possible

DCFC79

CatAdams wrote: »

Yes only way would be to borrow against property value, but not sure how to do that without Irish bank finding out, or if that's even possible

Dont see how that would work, why not give it a try.

Herzlos

Any local building developers you could offer the whole site to? Some would be happy to buy £165k of plots for only £60k.

But then they may just let the bank repossess and take their chances at auction.

Will the bank let you reinstate the original mortgage if you prove the new value? You already own it so it'd be less hassle than repossession. You might be able to negotiate a reduction in fees for the repossession that never happened.

On 20k you're not going to get a 40k loan for a property, especially when your repayment plan is to sell part of it. That's a huge risk you won't be able to pay it back

CatAdams

If I buy it back for €50K, I get €165K worth of property, owned outright and debt written off.

Herzlos

CatAdams wrote: »

If I buy it back for €50K, I get €165K worth of property, owned outright and debt written off.

Which is fine if you had 50k or enough salary to borrow 50k from a lender willing to lend on that risk. You could get into huge financial trouble trying to pull this off.

CatAdams

Herzlos wrote: »

Which is fine if you had 50k or enough salary to borrow 50k from a lender willing to lend on that risk. You could get into huge financial trouble trying to pull this off.

Yes but I could also get my property back and debt written off. It won't happen otherwise. It's a gamble. I appreciate your words of caution though, and I'm wondering whether I could secure a private buyer for a half acre site before borrowing anything to pay the bank off with.

sourcrates

Hi,


Your plan, relies on so many variables for it to work, I just cannot see you been able to raise that kind of money, in the way you describe.


The best advice is to "keep it simple", anything else is far too high a risk, which make the chances of failure very high.


I don`t expect the bank thinks it will see its 260k again, so why not make an offer of what cash you can raise easily, 8 or 10k, for example, they may just snap your hand off.


If they don`t, i would walk away personally.