# couple separating and negative equity



## Nitsi (18 Aug 2011)

Hi, me and hubby decided to separate at christmas but unfortunately living under same roof as he is not working. I have been paying mortgage and all bills for two years. I am in full time employment. Husband doing odd jobs but not contributing to anything.  Mortgage with PTSB.  House bought three years ago in Co Wicklow for 355k, owe 320k and valued a few weeks ago for 175k. I want to upsticks and leave the country and leave hubby with the mess, but my conscience tells me otherwise.  Sought legal advice but solicitor advised that separation agreement wouldn't help much because hubby has nothing to benefit signing anything and that I would be paying solicitor money for an agreement that isn't worth the paper its printed on!  I told the bank our situation and options are to fill in large xcel sheet and we may or may not get three month moratorium or six months interest only.  My question is what would happen if I just stopped paying the mortgage? any advice appreciated thanks.


----------



## hastalavista (18 Aug 2011)

Sorry to read your post.

To answer ur question the bank will go for a judgement mortgage and seek possession. They sell at 175 and you are still on the line for 320-175 + their costs which can be 30k or more. I presume the house and debt are in joint names

If u hang around the judgement may include an attachment against your salary at source
the large excel spread sheet u refer to is the MARP process and if u enter into it and play ball it constrains the bank somewhat.

You mention conscience and I take it it is debt-rather than hubby related.

As this is a moderated forum I will say no more other  than you need to look after your self, I take it there are no kids so I would, if you can, take the hastalavista baby option, after all its only money.

While you dont mention it, the divorce option does not give u the ducks anatomy style protection you need because there is a clause in the legislation that allows either party to come back to the well.

What I am hinting is at here is that after the 4 year living apart requirement, u get the big D and move on and away and then come back with a shed load of mula. Hubby can have another go at the divorce if he is on his uppers.
When the law came out first the clawback was optional, you could get a bullet proof big D but not any longer.
Keep well.


----------



## Nitsi (17 Sep 2011)

thanks hastalavista


----------



## ClubMan (19 Sep 2011)

Probably not a runner here (or in many cases) but a couple whose marriage/civil partnership has broken down can "live apart" under the same roof in certain circumstances and still meet the requisite "living apart" criterion for divorce/dissolution of civil partnership.


----------



## LauraG (22 Sep 2011)

have u looking into declaring bankrupt? 12 years of blacklisted name here tho, but go to the uk, stay a few months, declare yourself bankrupt might be an option, only 1 year blacklisted there! see this article;
http://www.guardian.co.uk/business/2011/feb/18/ireland-property-crash-bankruptcy-tourism
anyone any views on this if possible? If she declared bankrupt in the UK what effect would this have on her PTSB mortgage here?


----------



## LauraG (16 Oct 2011)

Can u get the big D now with a clause written in/added that if there is a windfall that the other party isn't entitled to some of it? I know a person who's did this and they are sure it will stand up but I'm not so sure? 

Regards


----------



## Steve Thatcher (1 Nov 2011)

LauraG said:


> Can u get the big D now with a clause written in/added that if there is a windfall that the other party isn't entitled to some of it? I know a person who's did this and they are sure it will stand up but I'm not so sure?
> 
> Regards


 
Laura if the OP went bankrupt here her liability under the mrotgage would disappear. Her interest in the house would vest in the Official Receiver. He would realise that there would be no equity in th ethree years he has to deal with the property and so would tell the bank he has no interest in it. The bank would take steps to realise their loss. That loss would be written off in the bankruptcy. No debt. Free and away in 12 months. Check out my original posts on this on this site.

http://www.askaboutmoney.com/showthread.php?t=158639


----------

