Husband in massive negative equity, arrears and denial. I have savings

Hi, I am really hoping someone can help me and guide me in the right direction.


Personal and income details
Net (i.e. after tax) Income self: public servant €33000 permanent

Net income partner/spouse: permanent private sector €18000
Income history: self employed until June 2012, business no longer feasible.
number of children 1

Husbands Home (now living in my home)
Amount of Mortgage Interest Supplement received-Nil
Home loan-€292000
Lender: Ub
Amount outstanding: €290000
Value of home: €115000
Interest rate: specify whether tracker or SVR or fixed rate-SVR unsure of rate
Monthly repayment-€1136.71 as agreed with Marp process
Amount in arrears-€24000
Rent €875pm


Summary of discussions and agreements with the banke.g. in Marp since Jan 2013 after extensive negotiation.

My property - We live here
Lender: EBS
Amount outstanding: €368000
Value of home: €255000
Interest rate: ? Tracker
Monthly repayment €980
Amount in arrears €0


Other loans

Usual household debts- 150 left a month after bills
Car loan-€3500
Childcare €900

Other savings and investments

I have savings of €50000 husband has nothing saved.

How important is retaining the family home to you?
Really important mortgage is in my name only. Husbands is in his name only.
Which of the following best describes your situation?

Any other relevant information

What is your preferred realistic outcome?
Husbands arrears only came to my attention a year into our marriage I paid €20000 off it already. It was almost €45,000 in arrears when he told me what was going on. I have rented out the house and €875pm is best I can do. The bank are asking for the remainder of the arrears to be paid off ASAP. I could afford to do this but have worked hard to save this money and want it for my child in the future and also what was the original plan- for our next mortgage.

This has been a difficult year for us in many ways. Bank have offered to capitalise arrears but the monthly repayment would be unsustainable and I would risk putting my mortgage in arrears. Selling his house is not an option as ye negative equity is huge.

What would you do in my position? What can I do. My husband won't even discuss it he has buried his head so far in the sand. I'd appreciate any advice. Not sure if my marriage will last not ploughing my savings into his mess.

Let's untangle this.

You are in a good position on your mortgage

€368k @ say 1.5% interest is €500 per month. This is the real cost of your accommodation, which is very low. The additional €480 per month is slowly paying the capital down off your mortgage.

You have €50,000 savings, so you are in no danger of falling into arrears or losing your mortgage.

Keep your financial affairs completely separate from his.

Your husband should apply for a voluntary sale and write off of the shortfall

The rent won't cover the repayments.
He doesn't seem to have the skills required to be a landlord
He will be a long time recovering the negative equity - prices have to rise by 150%
His income of €18,000 doesn't allow him to make up any of the shortfall

Step 1 - apply to sell the house by voluntary agreement. Assume that they agree.
Step 2 - sell the house
Step 3 - Ask the lender to write off the shortfall of €175,000. They will refuse
Step 4 Apply for a Debt Settlement Arrangement which would write off the shortfall over a very short period of time - one year -
if they veto the DSA...
Step 5 He applies for bankruptcy.

The lender's attitude
The lender will do their best to involve you, but you must steadfastly refuse to get involved.
If they refuse to allow him to sell the house, then he should apply for a Personal Insolvency Arrangement which would involved selling the house.
Again, if they veto this, he applies for bankruptcy.

You might consider...
If they agree to the voluntary sale of the house
you might agree to making a very small contribution in exchange for writing off the shortfall

Absolutely no more than €10,000.

But keep this up your sleeve. You should argue that you have already paid €20,000 out of your money to the bank and you will be paying nothing more.


you might agree to making a very small contribution

Thanks so much for getting back to me. Would a debt settlement write off the remaining amount? This has to be paid back in 5 years, would that be right? Can I keep my finances seperate even though we are married. I managed to so far. If you apply for a voluntary sale and debt settlement does that mean you will never get a loan in this country again.


Thanks again for your help

Make absolutely sure

1) That you don't put your name on his mortgage and

2) He doesn't put his name on your property.

Brendan