Advice Credible Currency

It is in the air with foreign currency loans subject, this is what every other news now. This is what brings a coincidence, this week managed to keep consultation couple involved in a subject. I thought this experience can share with you.

The couple in the classical way ran into a house and car loans in Swiss francs. Fortunately borrowed completely normal, no life insurance, no nothing else was not combined.

The house was assessed 45 million a few years ago, they paid 18 million loan, which is due to the franc exchange rate foie 24 million. An appraisal last year was only 32 million of the house because the fifth-year drop in real estate prices.

After three years on the car loan is even more (2.5 million) than when it is applied, while there are only worth a million, have not been able to sell.

To do this, two Koppel overdraft credit line associated with close to 90 thousand annual interest burden.

The loans monthly despite the exchange rate of 230 thousand, while the average net monthly family income of HUF 350 thousand. The last fifty years of his physical work and doing business, he brings home the lion's share of payment.

The luck that there are only minor behind on credit repayments, they can still be replaced. However, for this to work day and night, even on weekends.

As the most obvious solution is to increase revenue is not out of the question, especially that time would not have it, another solution had to watch.

But before that we routed the usual circles. (If you have already paid ten million, why did not decline a loan, where is my money's why:. Article) In addition, we discussed why it was silly for 30 years to absorb the loans, when 20 years only a few thousand would be more installments, but in the end 15 million would have remained on the interest.

The loan refinancing can save millions (about this article here, if you have credit, read it), but in this case it would not have helped, plus you have to wait and see what action the paramedics bring together foreign governments and banks.

Advice Credible Currency

The main concern for the family was that even with the110-120 thousand monthly salaries will remain, even if they work weekends. If you are going to end, you can pretty much for them as well.

Therefore, they should not lead them to the obvious solution: simply sell the property and have to move into a small boat. He protested with all his might, this 150-square-foot house was the work of his life, it can not be sure that they give up. Otherwise, how can it fail in the current market conditions.

(I read a survey that was Gonda just maybe 5% of debtors was identified as a response to sell his apartment to find a solution. All other public assistance, as was mentioned in the loan refinancing, but had not thought of almost no debt.)

In order to convince outlined as follows:

Month after month a knife edge, a pretty bad month, due to a broken leg and missed three months of work they drift away in the that the bank will sell the house out from under them, fragments price.

I pointed out that Koppel discharged 300 thousand credit facility is therefore obviously arose because once slipped a subscription. (As it turned out, I was right.) I asked that the next such case, what will they do then?

A man performs manual labor and 50 years old. What if I already can not stand or not stand so much? If you pull your shoulders, or get a hernia? The credit, thanks to a 30-year maturity, at the age of 76 expires. According to him, at the age of 70 he can keep up then too?

There is not a weekend, a recreation, because they work for the house. I asked him whether it was worth it? That his whole life will be about a financial fight, which is just about holding of the house? Therefore, you should live?

You can go out to work in Germany or England 350 thousand forints to the house, even a house hold. They will live together for four a run and two Pakistani district of London to be at home in a house that you can not even see?

It was not easy to fight, but he also realized that paying unnecessarily high price for keeping the house. It talked about yet, move to sublet the house to be issued, but only 60 thousand per month would have been a profit, so it could have been inhabited by the tenants of the house. In addition, if you do not live in the house, then why hold back?

That is why we stayed in to begin selling the house for 37 million. Fortunately it has not "burn the house" because the loan is paid, so the price can be kept safely out of the house. (When you have to sell the house on the implementation front, it almost would not get any money for it. In just a few months of mortgage payments on implementation by choosing them because anything can happen at any time.)

Credit remains Lock award, bargaining with a good case to HUF 10-11 million. It paid off the car loan and the credit line, and then take the residue using a smaller house or apartment, the missing amount loans.

Then only there will be a loan, is the third to half the size of the current and also freed. At this time there are only 40-50 thousand take the credit, not the monthly income of 230 thousand.

When they do so, they put away 300 thousand and livelihood for six months, in addition. Quite a different feeling to wake up so that you will not go wrong if you do not work for half a year, with a stomach cramp as the need to pay 230 thousand again, even if there is nothing. This is frustrating and bitter feeling 30 years, not a single property is worth.

(I spoke to a young lady last week who's problematic that everyone told her irresponsible if sublet gives birth to the child, not his own apartment. I said that this is a big bullshit, I think it is irresponsible, who has hundreds of thousands strain on housing loans are thrust into childbirth. But that's another topic.)

Finally, we managed to convince the couple to make the best decisions are made when moving to a smaller real estate. I hope this is the obvious solution more and more people will realize the country.