Daft Property - Irish Property News

Could this be a lifeline for those in negative equity?... Those with underwater mortgages may hope that new, negative equity mortgages could offer them a way out... Are negative equity mortgages a way out for people trapped in properties that no longer suit their needs or just another minefield waiting to blow up? COULD A SOLUTION to the negative equity nightmare currently facing hundreds of thousands of people finally be in sight? No, it’s not a rebounding property market, but rather a number of proposals aimed at lightening the load of those who bought during the boom, are now struggling to meet their monthly repayments and are stuck with properties they cannot sell. For those with underwater mortgages, the difficulty in selling arises because the sale of the property will not generate enough to pay back the lender. For example, if you bought a property for €400,000 with a 95 per cent mortgage during the boom, regardless of the fact that the apartment will now only make €280,000 on t