Trouble in paradise as value of that second home in the sun dries up
Selling that holiday home to get out of negative equity is not all that simple, writes Daniel McConnell
It is the worst nightmare for many, but up to 350,000 Irish homeowners may be in negative equity, a leading government agency said this weekend.
If that is true, then well over one-in-three Irish mortgage-holders owe more on their home loan than the value of their property.
Because of the recession, increased unemployment, pay cuts and the credit squeeze, Irish house prices have fallen between 40-50 per cent and there are now thousands of people struggling to meet mortgages on properties that are worth far less than the value of those loans.