# Unsustainable Mortgage



## SingMom& (2 Oct 2013)

Hi I'm Martha, My husband and I split just over a year ago. I have 2 children 6 and 9. I receive one parent family income of 245 euro a week and receive 100 euro from my ex husband, maintenance. Mortgage is in both our names but I live in the house and so am liable.

 My mortgage is 930 euro a month, My interest only period ended last year at 630 euro. I have been in the MARP process for a year and am in constant contact with EBS and head office in Dublin. I have appealed and asked to pay 400 euro a month until I get employment but this has been turned down. They have told me that the mortgage is unsustainable and I have to put my house up for sale.

The house is worth 125,000 and the mortgage is 139,000 plus roughly 10,000 arrears. I don't think I will ever be able to pay the full mortgage even if I get employment so after 13 years here I'd say my only option is to let the house go rather than have no standard of life trying to pay it every month. My ex husband does not pay towards the mortgage. I have received no mortgage interest relief as I can't get an agreement from EBS to sign and show to them as proof of being in the MARP process.

My question is do they gave the right to tell me to sell my house? Also if they are going to re-possess if I don't sell how does this process work and how long does it take, does it have to go to court? I don't know where to start it's all so overwhelming at the moment.
Any help will be really appreciated thank you..


----------



## emeralds (2 Oct 2013)

If your ex-husbands name is on the mortgage document then he is also equally liable for the mortgage. Is he aware of this?


----------



## ClaireM (2 Oct 2013)

Banks are obliged to fill out the Mortgage Interest Supplement documentation. If you don't meet the conditions of the payment that vis different.

Have you spoken to EBS about Mortgage to Rent?

I would not rush in to a voluntary sale.


----------



## SingMom& (3 Oct 2013)

I was told by my solicitor my bank manager that I am 100 percent liable for the mortgage because I reside at the residence. He is not willing to pay towards the mortgage because he is living with a new woman and her kids and priorities have changed unfortunately. I have mentioned it to EBS but was told that's my affairs and they have not chased him up about his half of the loan.

I did speak to head office in Dublin about Mortgage to rent and they said that option doesn't apply to me, my local branch manger said they have offered nothing but interest only to customers since last xmas as far as he is aware.

The bank will fill out the MIS no problem it's just that the social welfare want a signed agreement once you have entered the MARP process instead of this and have told me my estranged husband is entitled to half the MIS so I will only get half and he gets nothing because he doesn't live here. I just feel like all doors are slammed in my face wherever I turn.I had never missed a month on my mortgage in the last 12 years and now they won't even give me options.


----------



## Bronte (3 Oct 2013)

Solemum, sorry for your predicament. More detail is needed from you. 

It is not true that you are 100% liable for the mortgage. Both you and your ex are liable. What is true is that the bank will go after you because a) you live in the house b) your ex seems to have nothing to give them. 

Because you are on social welfare, you can not afford the mortgage, or even close to it, you have offered 400 Euro (where would you get this?) which is not even half of 930 Euro. How were you able to pay the interest only of 630? How much is a family home in your area to rent for an adult and two children. What is the social welfare rent allowance in the same area?

I don't pretend to understand the social welfare rules on MIS. But is seems you are not eligible for this. I presume this is a fact. Can you double check this by going on this website to the social welfare area and asking that specific question there.

I presume after all these years you do not wish to give up your home. But hard and all as that is, surely it is worse to be living like you are now? I'm sure the breakup is not helping things. Do you not think you would be better off walking away from all this stress with the EBS and starting again. 

In relation to your specific questions, yes if you don't pay back your mortgage the EBS can repossess you. They will bring you to court to do so. But it will take them a long time. So you can continue as you are, which delays things, you might get a year or more out of it. And even if they bring you to court, you can ask the judge for another say 6 months, ("my daugher needs to finish school next June, can we stay here until then "- Judges will generally allow this). I would not be afraid of the bank bringing you to court, while it can be a frightening experience, just be strong. Judges are not monsters. 

Your other option is to agree with the EBS that the house be put on the market, that you live in it in the meantime and that you will leave when it is sold. I hope my advise to you is not too bleak, I'm sure you know yourself that you cannot afford the house. But it is only a house, and your home is where you are with your kids no matter where that might be.


----------



## orka (3 Oct 2013)

Bronte said:


> It is not true that you are 100% liable for the mortgage.


Unfortunately, the OP is 100% liable (but not due to residence as indicated by her solicitor).  Her ex is also 100% liable but the way joint mortgages work is that each party is liable for 100% of the debt.  And as Bronte points out, the bank will take the path of least resistance in picking who to pursue for the debt.


----------



## commonsense (3 Oct 2013)

SingMom& said:


> I was told by my solicitor my bank manager that I am 100 percent liable for the mortgage because I reside at the residence. He is not willing to pay towards the mortgage because he is living with a new woman and her kids and priorities have changed unfortunately. I have mentioned it to EBS but was told that's my affairs and they have not chased him up about his half of the loan.
> 
> I did speak to head office in Dublin about Mortgage to rent and they said that option doesn't apply to me, my local branch manger said they have offered nothing but interest only to customers since last xmas as far as he is aware.
> 
> The bank will fill out the MIS no problem it's just that the social welfare want a signed agreement once you have entered the MARP process instead of this and have told me my estranged husband is entitled to half the MIS so I will only get half and he gets nothing because he doesn't live here. I just feel like all doors are slammed in my face wherever I turn.I had never missed a month on my mortgage in the last 12 years and now they won't even give me options.





Does your husband work?


----------



## Bronte (8 Oct 2013)

orka said:


> Unfortunately, the OP is 100% liable (but not due to residence as indicated by her solicitor). Her ex is also 100% liable but the way joint mortgages work is that each party is liable for 100% of the debt. .


 

That's correct Orka, I put it badly.


----------



## SingMom& (14 Oct 2013)

Thank You Bronte what u have said was the conclusion I have come to as well...I do agree the house will always be difficult to keep on one salary....My ex husband recently got a job and put the maintenance up a little but realistically I can't pay the house even with this extra money coming in...U asked me how I paid the the 630 euro interest only, well it was a combination of my childrens allowance and savings I had since I was married. I am speaking to a solicitor and an auctioneer to make sure I lose the house in a way that leaves me in the best possible position going forward. Can I ask u one more question Bronte if I may, u might be able to advise me...If my end result is that I will definitely lose the house should I stop paying the mortgage (well the 400 euro a month) and save it up for a deposit for new rental house and a few months rent in advance for when the inevitable happens. What's your opinion ?


----------



## vandriver (14 Oct 2013)

I dont know about Ireland,but in the UK ,equivalent forums to this one do recommend withholding mortgage payments to get a nest egg for the uncertain future.It might hasten the banks decision to repossess,but would it speed up the actual process?I doubt it.


----------



## Bronte (15 Oct 2013)

SingMom& said:


> ...If my end result is that I will definitely lose the house should I stop paying the mortgage (well the 400 euro a month) and save it up for a deposit for new rental house and a few months rent in advance for when the inevitable happens. What's your opinion ?


 
Well how else are you going to get a deposit and one month's rent up front?  

Will you be looking to social welfare for help with the rent?  If you are then you must be VERY careful how you lose the current house.  If you 'voluntarily' give it back you may not be entitled to housing assistance.


----------



## cremeegg (15 Oct 2013)

bronte said:


> well how else are you going to get a deposit and one month's rent up front?



+1


----------



## alica (15 Oct 2013)

SingMom& said:


> What's your opinion ?


 
Hi SingMom,

I might express not very popular opinion, but I can not understand, why your mortgage is unsustanable?

you are getting 1755 per month ( (245+100)*52/12+ 260 children benefits) less 930 mortgage - that leaves 825 per month,
not a fortune, but quite possible to leave for 1 adult + 2 kids... 
300- food, 100- bills, 50- insurances, 150-car motor tax, petrol and maintenance, 100 - clothes, 100- luxury eg. mobile and treats for kids (), 25- fund for rainy day...

would you be able to find an accommodation for less then 930 in rent?


----------

