Break up, House in Neg. Eq. advice needed

[TickTock]

Hi,
I’m looking for some advice please.
I bought a house in 2006 with my girlfriend from her parents (A property developer) we purchased the property as an investment property.
After we had extended the house and renovated it, we intended on selling it. However there were some issues with planning and a site next door that her dad was building on. Which delayed us putting the house on the market for over a year because we got mixed up in objections about the other building planning permission and our extention.
Any way In 2008 I split up with my girlfriend at this stage the house was rented. The property was for sale but as you know house prices started to drop I lost my job and we couldn’t find tenants for the house.

My ex became very uncooperative around this time and failed to do a number of things, renew the house insurance etc This was one of her responsibilities, I looked after the maintenance, collection of rent etc etc.
The house flooded late in 2010 this is when I realised she wasn’t paying some of the bills. At the moment the house is rented, my ex refuses to enter into any discussion on ways to get out of this mess. I’ve consulted a solicitor but he has been pretty useless.

The current situation is
Mortaged for 365K
House is worth about 220K if I’m lucky
We are in 14k arrears
I have some small savings but don’t want to put this into the house, when my ex is refusing to do anything at all.
I’m working again, I’m not sure what my ex is doing. Her family looked after all the financial details at the start as at the time they had a very good relationship with the bank. The dad is a developer and her mother is a solicitor.
During the house renovation I was working up to 80 hours a week (including my day job) to get the project finished.
What are my current options, I don’t want the house, I can’t afford the payments on my own if its sitting idle again. She/ her family delayed us on trying to sell now I’m in 145k negative equity living at home with my parents.
Any advice welcome

 

[elcato]

What name(s) are on the mortgage documents ? Are you joint owners ? Is she paying some of the mortgage ?

 

[44brendan]

As this is the only property owned by you in Ireland it is designated as your Principal Private Residence and you are entitled to seek a reduced level of repayment within your means under the MARP rules.
Given the position presented by you, this would only result in the postponement of a problem that will ultimately need to be addressed.
Assuming that both property and associated loan are in joint names, you are both fully liable on the debt. This means that the Bank will be approaching both parties to meet the loan repayments, or in the event of the property being sold, to deal with the shortfall. You will be expected to contribute towards loan repayments in accordance with your means.
1st port of call is to contact the Bank and advise them of your situation. You will probably be asked to fill in a FSA outling your financial circumstances. The property cannot be sold without the co-operation of the joint owner, or unless the Bank re-possess. You can certainly advise the bank that you will fully co-operate with the Bank in progressing a vluntary sale of the property. Ultimately the shortfall (negative equity) will have to be dealt with and this is (at the moment) an uncertain area. New insolvency legislation, may in time give you an out here, but currently you will be both fully liable for any shortfall on a sale. I am assuming that at least the rent payments are currently being paid over to the Bank!

 

[gemma1]

Hello TT, I am in a similar situation, my ex will not negotiate with regards to selling house etc. Have consulted solicitor but like you not much good. Where do you go next as to what to do? Cannot remain attached to my ex forever.