# Separating but in negative equity



## Aquablue (14 Jul 2010)

Hi, Can anybody help me out with this problem. myself and my husband have separated in recent months. Our family home(joint names) is in huge negative equity (approx 200k). We are paying interest only which is due to be reviewed by the bank soon. One of us is living at the house. Is there any way of selling the house or what other options have we? Thanks


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## mf1 (14 Jul 2010)

Well, what you have is debt. And you both owe it. So, unless the bank is willing to let you sell the house and convert the debt to a personal loan or some such thing, then you do not have a lot of options. 

Can you afford to continue to pay interest only? Will the bank let you? 

mf


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## aristotle (14 Jul 2010)

Would it make sense to rent the house out?


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## Aquablue (14 Jul 2010)

If we rented out the house, we would only get the amount of the interest only payment. I don't know how long the bank will allow us to continue with interest only. It's to be reviewed after the initial 6 months. If the bank did allow us to sell the house and convert the debt to a personal loan, how can I start out as a single parent with €100k debt ?


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## aristotle (14 Jul 2010)

If you are changed to an interest plus capital payment then what is the shortfall on the rent versus the mortgage repayments (you will need to do up some numbers to account for tax, house insurance, landlord costs etc). 

After doing that how does it compare to have a 100k loan and the repayments?

If you cannot pay the mortgage there are other avenues like mortgage interest supplement, going into arrears and seeing what new protocols might come out of the task group who are making recommendations to the Govt on how to deal with the 1000's of people in a similar situation to yourself. 

Don't panic yet, I am not saying there is an easy way out but you shouldn't rush into any decisions.


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## sullie31 (14 Jul 2010)

hey aquablue, i'm sorry to see you find yourself in this situation but there is really and truly only one option here and that is to sell the property. I agree with other post's that the main thing is not to panic. however, it's always best face these things head on rather than dragging the whole process, stressing yourself out at the same time.

you need to appoint your own solicitor (assuming you're not legally seperated), then go and take advise from him/her. i would equally be recommending that you and your ex go and meet with the bank and point out exactly whats going on. an agreement will then need to be reached in relation to the shortfall. 

Again, your solicitor can do all this for you, that is, if you feel you didn't have enough knowledge on the subject.


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## liger79 (17 Jul 2010)

sullie31 said:


> go and meet with the bank and point out exactly whats going on. an agreement will then need to be reached in relation to the shortfall.


 
Dont get your hopes up about this. I got told today the bank wont be prepared to do anything with regards the NE. Its up to me and the ex to arrange our own loans with whoever we want or the sale of the house wont happen.


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