Negative Equity Sale of tracker property with ex

S

Suebee

Registered User
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Hi

Any advice welcome on this situation.

Purchased a property with my ex boyfriend in 2005 for 312000.
100% mortgage
Property is on a tracker rate
NO ARREARS
Currently value aprox 170
Outstanding debt aprox 239k

In 2009 we split up and both moved out and rented the property due to negative equity.

We are both now married to new partners and I have 2 children,he has none.
In 2015 myself and my husband managed to get a 2nd mortgage and purchased a family home.

Myself and my ex have been amicable and always made up the shortfall on rent and split maintenence fees etc.

Due to rising rents my asked asked if he could move back in and he did so early last year.

At the time we purchased we did a co ownership agreement and put a clause in that should one party wish to sell the other had opportunity to purchase if they did not want to the property could be sold on open market. At the time we put this in negative equity didn't exist and it was to enable us to sell and move on without having to go to court to ger an order to sell.

He informed me of his intent to sell his share. I am currently not working. Therefore not in a position to purchase his share.

He is threatening to lodge proceedings in the court if I try to prevent the sale. I don't see the point in arguing this in court and racking up legal fees to loose when it's lack of finances is my issue.

Issue is I do not have the means to clear 50% of the negative equity and he is implying all shortfall is to be split.

I have savings of 7000 in credit union but 5500 is against a loan so really only 1500.
Other than I have no savings.

There is aprox 60k equity in my family home but of course this is half my husbands and as I am not working remortgaging wouldn't be feasible.

In case you haven't guessed we are no longer talking
 
Does the bank know that he is about to sell the property that is in negative equity? They may have a problem with the sale?
Are you registered as joint owners? both joint owners have to sign the deed of transfer. If registered as tennants in common then he is entitled to sell his half share without your consent.
 
Why does he want to sell?

Has he moved out?

This looks like a very profitable investment so is worth keeping.

Which lender is it with?

It's possible that he could buy you out and keep the tracker and then move the tracker to another party.

It's a pity you are no longer speaking. You need to try to get an intermediary to sort it out.

Brendan
 
I assume he wants to sell to purchase a house with his wife.

They are living in the property at the moment.

The mortgage is with BOI
 
So an update on this he is refusing to speak to the bank together and insisting I pay half of the outstanding debt once sold. I have tried to explain that I don't have the funds to pay it and that as I don't Have an income I don't see the bank converting my share in to a loan as an option?? Or would they ?
He has engaged with an estate agent and says the property will go for sale next week.
He ignores me when I tell him he needs the banks consent for the sale to close.

Advice on where to go from here?
 
Suebee I would tell the EA the score. They know all about these types of cases and they also know that it will be a waste of time trying to sell it. Once he knows the bank hasn't agreed to the sale he'll probably ask your ex for proof the bank has agreed to a sale.
 
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OK so basically it's a waste of time putting it up for sale without bank consent.

He doesn't seem to understand that the bank will just want the debt settled and that they don't see it as just 50% his responsibility?

I would assume the bank could decide he is the one with the income etc so if he wants it sold he clear it all and chase me separately for the debt?
 
What you don't get is one the EA knows the bank has an issue the EA knows he's wasting his own time as there will be no sale so he won't get paid.

Let's just say it goes on the market, buyer agrees, your ex does, but you ignore everything, already a problem for the EA.

But let's go further, buyer pays EA small deposit and solicitor is engaged etc. Then your bank is asked for deeds, and they will only release them based on a realistic repayment of their mortage. So mortgage, less massive NE is a no no, unless your ex has the money and says he'll pay it all off. The bank will want proof of this. Meanwhile there's you. Your ex has to go to court to get you to pay, never mind sign the sale documents, but you don't have anything. Your ex is burying his head in the sand.

Has your ex talked to his own solicitor?

I realise you do have some equity, but this is a nightmare scenario for your ex. I suspect his wife is pushing this but they are not being realistic. Trying to force your hand.

The bank will not agree to the sale. Not if the mortgage is bein gpaid, and if your ex and you default, they will go after whichever one of you is a good mark. ie the one with the money.

Why don't you pop into Mabs and have a chat, to put your mind at rest.
 
OK so update.

I got in touch with the EA last week and explained there had been no dealings with the bank and my situation.

Ex contacted me shortly after and said he had arranged for us to meet with the bank (meeting with them next monday)

EA obviously got through to him on this although my exs final words to me were the bank can't prevent the sale they just need to know how were covering the shortfall.

I'm guessing he thinks I'm lying about my financial situation.

Any advice on what I should bring with me to this meeting?
 
You should bring your solicitor to the meeting! The property cannot be sold without both owners' consent and signatures. Bank will not release deeds until they're happy they're getting what they're owed.
Consult with a solicitor on the whole situation and find out where you and your ex stand legally on the property. Your solicitor could advise how to resolve the issue going forward. Can recommend a firm if you PM me.
 
It's crazy stuff meeting the bank without you and your ex agreeing what you are doing beforehand.

But you should go to the meeting anyway. You should show that you are co-operating all the way.

Brendan
 
Suebee said:
They are living in the property at the moment.
Click to expand...

Just looking at this again.

He is living in the house and paying half the mortgage?

You should tell him to cop on or you will act just as unreasonably.

Suebee said:
I assume he wants to sell to purchase a house with his wife.
Click to expand...

For example, you could tell him that you are going to stop paying the mortgage. You will damage both of our credit records, but this will hurt him much more than it will hurt you.

Brendan
 
Brendan Burgess said:
It's crazy stuff meeting the bank without you and your ex agreeing what you are doing beforehand.

But you should go to the meeting anyway. You should show that you are co-operating all the way.

Brendan
Click to expand...

Well brendan he just keeps saying the negative equity will be split in half so yes it's crazy but he isn't listening to anything else.
 
He has so many other options.

Does he like the house? If so, he could stay in it, and you could renounce your interest in it. His repayments on any other equivalent property will be much larger.

Even if he does not like the house, you could let him take over the mortgage in his own name or in his wife's and his name. Then he could transfer the tracker to a new property and have a cheap tracker for 5 years on his new home.

You should just play tough on Monday. You are not prepared to sell the house while it is in negative equity unless the bank writes off the shortfall in full, which they won't. You are prepared to let him take over the house and mortgage if BoI agrees, which they might or might not. No you are not prepared to contribute to the negative equity, as the cheap tracker wipes out the negative equity.

Yes, you are prepared to sit down and discuss it with a mediator in a constructive manner.

Brendan
 
Thanks for the advice Brendan. I have been more than fair and reasonable to him. The property could be rented for 1550 per month and the mortgage is only 900. I have never ever asked him to pay me going market rent for my share which I could.
 
Agree fully.

You have to be extremely tough on Monday. If necessary, ask someone to go with you - maybe even a solicitor or a financial advisor.

Brendan
 
Suebee said:
The property could be rented for 1550 per month and the mortgage is only 900.
Click to expand...

So he is paying €900 for his accommodation. That house would cost €1,550. If he buys another, he will be paying repayments on the mortgage at the non-tracker mortgage rate and he will be paying off the shortfall on the mortgage.

Brendan
 
I am not sure if it's the case but I'm imagining he wants to do a negative equity trade up mortgage and that would allow him move his negative equity in to a new mortgage and keep the tracker for 5 years.
 
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