Bought a house with my ex, need a long term solution

D

Dee1

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Hi all

New to this so hopefully i'm in the right place!

I know there's lots of people here with the same problem and i am aware that the general feeling is there can be nothing done about it but sure here goes anyway.

I bought a house with my ex in 2008. Its currently in approx €100k negative equity. We split up in 2010 and i'm living in the house with our daughter and paying the mortgage. However, I can't afford the mortgage anymore as, along with the usual pay cuts etc I'm not receiving much maintenance. Anyway, I'm on interest only at the minute until august so need a long term plan by then. Ideally, I'd like him off the mortgage along with his half of the negative equity. I have not approached the bank about his yet.

As the bank are aware, he is not working, nor is he contributing to the mortgage, nor is he able to. In fact on a few occasions he's taken the mortgage payment out of the current account before the direct debit had a chance to kick in, leaving the mortgage in arrears (approx €2k). Current account has now been changed.

So, my question here is, is there any provision within the personal insolvency bill to allow me to apply for him to be made insolvent (he has loads of other unpaid debts) so the bank might take him and his negative equity off the mortgage. Or, has anyone any other suggestions as to how I might achieve this goal!
 
No this cannot be done. Without the co-operation of the joint owner you have a problem here that has no easy solution. You need to look at a long term solution that does not involve staying in this property.
I would also advise you to seek the advice of a good solicitor.
 
As Brendan44 points out, I'm afraid your future in this house is frought with danger. The bank will not allow yoou to take on the full mortgage unless you are on a huge wage or able to discharge any NE from it. If you keep paying the mortgage, and you manage to keep the place until things get a bit better your ex still has a half share and he could lay claim to this at any time. Even if you win a court case it will still cost you. This may sound crazy but if I were you I would stop payment of the mortgage now and save the money in a seperate account. Play hardball with the bank and keep all correspondance in writing. Don not use phone or email and if anything stated in these demand it in writing. Tell them you are willing to stay in the house and keep paying interest only in the short term as long as they put the house in your sole name and your ex is gone from the property. Failing them giving you any leeway they will be forced to seek repossession. You will then both be equally liable for the NE after the sale but at least you have cut your liability in half. You will also have some cash to start renting in the meantime. Don't let threatening letters get to you as that is exactly all they are, threats. Remember, regardless they can't get blood from a stone.
 
Thanks very much for the advise. As it stands i'm on good terms with the bank, i'v always keep them informed of things and they've been very helpful. But, as you say elcato, I may have to go down that road to get what I want. The way I see it is its in their best interest to do what I propose. He has no means of paying it and they've experienced his attitude to the whole thing first hand. I know a friend of mine didnt pay her mortgage for 3 months as they refused to let her go on interest only (her ex left and is now in America and wont sign anything). After the 3 months she rang and said she wanted to hand back the keys, they were then more than happy to let her pay a fraction of the normal payment without him signing anything.
I think its very unfair that people has to resort to such measures for the bank to listen. So by the sounds of things I might not have any other option than to stop paying or to just pay what i can until they agree to take him off it. Then theres the issue of whether or not he will agree to it. Either way its a very big risk for me to take. I really dont want to lose my home.
Maybe I should start by writing to the bank and letting them know what I propose and see what they say?
 
Dee1 said:
. Ideally, I'd like him off the mortgage along with his half of the negative equity. I have not approached the bank about his yet.

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In this scenario there is no 'his half' of the negative equity. The mortgage is a joint liability.

If you cannot afford the mortgage, and despite you liking the house, then there is no point pinning your hopes on keeping it.

Maybe Elcato's suggestion could work, by not paying to force a bank to write down some debt to make it more manageable for you and also to let title be transferred solely to you. It's a very risky strategy. But doesn't seem like you've anything left to lose by trying it.
 
I wonder thought, is this something the banks will do? will they be held to ransom by someone like that? I've a feeling they'd just tell me to drop in the keys next time I'm passing!!
 
Well Dee the banks are going to have to start getting reasonable (is that an oxymoran) one of these fine days. They can't take the keys to all the people in negative equity. Nor do they want them. And despite the governer of the central bank suggesting that banks become landlords (unbelievable) I don't think any of the banks would be able to manage vast amounts of single dwellings together with the associated costs.

First step Dee is to talk to your bank, in writing.
 
Please refer back to my initial post and accept that you have no long term future in this property. I note advice from ELCATO and would agree that it is probably the most appropriate way to get the Bank's attention. However they cannot remove the interest of the co-owner from the property!
For your own sake you do need to consider long term plans that don't involve continued residence in this property. Please consult a solicitor to confirm your options and entitlements.
 
Brendan I cannot see any option other than staying in the house. I can't sell it, Id rather not hand it back as then I'd never be able to buy another house again. I have spoken to a few solicitors and i'm none the wiser. They all say 'theres nothing you can do'. Also, previously, in theory the bank told me it was possible, with my ex's concent to remove him from the mortgage and title. (NE did not enter the discussion!)
Bronte I agree with your comments re banks becoming landlords, its not going to happen! and it really does look like I will have to go down the hard ball route. Suppose I will write them a letter so outlining what I propose.
 
I can't sell it, Id rather not hand it back as then I'd never be able to buy another house again.
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I think you need to consider this statement. Why the big rush to own ? Also banks will have short enough memories if things start getting better and they need to pump up the loan book again. Your priority now should be to come out of the relationship and property disasters (apoligies if this is too strong a word) with the least damage.
 
I apologise if I'm coming over as being harsh or dogmatic. However, your current position is not one that can continue for the long term. You have 3 problems
1. It would appear that you can't afford to meet the mortgage payments. MARP agreements are a temporary postponement of Bank actions on re-posessions. There are not and cannot be a long term solution. I.e. Eventually Banks will either require mortgage holders to meet an acceptable level of P&I repayments or vacate the property.
2. You are only the joint owner of this property. The only person who can change this position is the other joint owner. Without his co-operation you will never be the sole owner of this property, even if you can meet the mortgage payments. In effect any payments you make are a gift to him of 50% of the capital element.
3. There is a significant level of negative equity in the property. This is unlikely to change for some considerable time and will not facilitate a deal with teh Bank.
 
The solicitors are right, there is no solution to this, at the moment anyway.

The bank are also right, in theory of course they could of course remove the name from mortgage and deeds,they could give you a new mortgage in your own name and clear the original but they have no intentions of doing anything like this in the present environment.

It's very tough but this is a problem a lot of people have at the moment with no obvious solutions.
 
HI dee,


are you on a tracker mortgage??, am in a similar situation with my ex,am still paying mortagage along with her, NE roughly the same,, i'm in the process of offering our tracker as a write down of her NE, and asking for me to take the title on soley, as they wouldnt allow me off the title or her for that matter... talk about being stuck!!!!
 
Dee1 said:
Brendan I cannot see any option other than staying in the house. I can't sell it, Id rather not hand it back as then I'd never be able to buy another house again. I have spoken to a few solicitors and i'm none the wiser. They all say 'theres nothing you can do'. .
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Of course you can sell it, and if you don't let the bank agree to you selling it then you are holding off the inevitable. The bank will repossess it and sell it for a lot less than what you would and you will be liable for the shortfall. Hopefully for you the new insolvency arrangments may mean this is written off for you.

There is no such thing as never be abe to buy a house again. Nearly everybody can start afresh, it might not seem possible now but you're letting the stress of this cloud your judgment.

In addition you've taken legal advice, which I presume you've paid for and rather than here on AAM I'd be listening to that legal advice.

The sooner you let the bank have the property and default or whatever the sooner you are on the road to starting again. Banks and people have to get real. Delaying and holding on is of no benefit as far as I can see as it is delaying life and delaing moving on and more importantly delaying starting again.
 
44brendan said:
. I note advice from ELCATO and would agree that it is probably the most appropriate way to get the Bank's attention..
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You work in arrears in a bank I think. So you agree that the best solution, in general, for people who cannot afford the mortgage is that in order to get the bank to engage (deal with you) that the best solution is just to stop paying? Not make any effort whatsoever. Presumably this is because it brings a solution faster.
 
So you agree that the best solution, in general, for people who cannot afford the mortgage is that in order to get the bank to engage (deal with you) that the best solution is just to stop paying? Not make any effort whatsoever.
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Kind of an oxymoron. the first part is actually making an effort. :)
 
Thanks everyone for all the info, much appreciated. I suppose I might need to try come around to the idea that I might have to let the house go. Does anyone know how the new Peronal Involvency Bill might help the situation in any way?

WK78 i'm not on a tracker unfortunitely, would be great if I could do something like what you are doing.
 
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