Case study Ex husband abandoning house in negative equity

Malenka said:

They actually didn't (my credit card is with them). The person suggested a moratorium in order to pay off my credit card and then go back to full payments on my mortgage as I have "affordabiilty". I refused it on the basis that the when TRS is over I might have to take a few of these mortgage breaks.

Click to expand...

Hi Malenka

This is very interesting. You are entitled to mortgage breaks, so you should take them and pay off your credit card which has a much higher interest rate.

Your mortgage is unsustainable so I don't think you are going to be paying off the capital anyway.

Brendan

I think you need to talk to MABS

they are the free Money Advice Bureau.

They have plenty of experience in this kind of thing.

I would think (if i were in your shoes), would be to get your ex off the title deeds of the property (but not the mortgage). He shouldnt benefit from you having paid off the mortgage, but should still be liable for the debt.

that way any repayments you make will be to (mainly) your benefit.

Hi guys,
back again with some more of my saga.
I have not signed the interest only agreement with the bank and I am currently paying half of the total mortgage value. I told the bank this, in writting.
They have contacted me and said this is not acceptable and if I carry on it means that I am no longer under MARP, because I have refused to engage with their agreement.
Is this correct? Do I have to go with what they suggest?
Is there anyway I can prove I am engaged with them other than signing this agreement?
Should I just forget about MARP altogether and keep paying half the mortgage till they start legal action?
They are still forcing for my ex signature even tho they say they will treat me as a single borrower.
Something else: can I ask them to not call me and only contact me in writting? These calls are very distressing.

Yes, you can stop them from calling you. Simply tell them not to call.

Malenka, hang on in there. You're doing well.

1) Ask them not to contact you by phone. Keep everything in writing. It will serve you better to have a good paper trail.
2) Dont sign an interest only agreement if you cant realistically meet the repayments.
Continue to repay your "half" of the mortgage
3) It doesnt mean too much that the MARP process has come to an end without a
conclusion. It actually opens the door for you to seek a solution under the personal insolvency act
4) Dont give up your home easily. The courts will be lenient on people like you who have come out of the Celtic Tiger years on the down side.
5) Your next step is to try to engage with the bank through the new Personal Insolvency Act. In my view you should use this to put a proposal to the bank to write down the value of your mortgage to the value of the apartment. The bank will probably refuse this but it doesnt matter, your attempt to solve the problem will be on record.
6) If the Personal Insolvency Act doesnt work, the bank may eventually try to repossess the apartment and you will get a day in court. In court you will be able to show that you are paying as much as possible, you will be able to show that you have made several honest attempts to solve the problem and I think you still will have a good chance, even at that stage, of keeping your home.

I hope it goes well.

looking2011 said:

He suggested I pay interest only plus a little more (€50 p/m or some such token amount) to lift me out of the 'interest-only' bracket of mortgages. As you know much of the reports and automated letters are spit out by computers and algorithims. Anything at all off the principle, without lining your ex's pocket in the process will get you out of that bracket of people. I am paying manually over the counter in the branch until such time as the bank come to their decision.
Good Luck.

Click to expand...

Hi looking2011, thanks for your reply and sympathy! I'm glad things are working out for you but also surprised that they willing to discuss options. In my case nothing like this has happened, even though each time I am speaking to a different person.
Can I ask you how did you manage to get your ex's signature on your agreements, or did they accept your signature only?

Malenka, you are being treated atrociously by the Bank on this issue. As a banker I am ashamed at the "bullying" tactics you describe. This is now predominately a Bank problem and not yours. Compose a letter immediately to the CEO of the Bank in question. desribe the tone of the meetings so far, as you have done so well on this forum. Specificy exactly how much you can afford to pay on your mortgage. Ensure that you have allowed for all living expenses as per the SFS statement and credit card payments. State that your health has been affected by the nature of the Bank approach in the meetings and you do not want any further direct contact from the Bank except in writing. Advise the Bank that they should progress the option of pursuing your husband in respect of his co-liability. Offer to fully co-operate with the bank in respect of any sale of the property (they or you cannot sell without your husband's agreement) Make sure you keep note of all correspondence with the Bank and details of all meetings that have taken place to date.
Then pay the Bank monthly the amount you can afford. If its less than the interest on the loan, then no need to worry. let them commence legal proceedings (which I doubt will happen in the short term) as this will have little effect given your co-operatin to date and your financial circumstances.