Joint Ownership and Negative Equity Mess

B

Brysmyth

Guest
When I finished up college, myself and a friend were both offered jobs with a US multinational that was setting up in the west. Rather than throwing money away on rent [the iron does not escape me] we bought a small house in a mature neighbourhood and renovated the place, with a view to selling it on within 3-5 years. We bought at 290k and invested about 20k in renovations.

Now the other guys is "self employed" and drawing the dole. I've had to move back to Dublin for work, so I'm paying Dublin rent prices. We have tenants in the house, but their rent only just covers the interest, and the bank have just declined our application to extend the interest only repayment scheme were on.

On top of that I'm getting married next year so I have a wedding to save for, and since I'm the one best in a position (financially) to cover the shortfall in the mortgage repayment, I'm probably going to end up spending e wedding fund in keeping the bank happy.

Do I have any options? The other guy is suggesting defaulting on the mortgage and walking away, but that's not an option for me, I'm starting a life and family here.
 
Deferring the wedding until you are in a better financial position is the first thing which you can do. I don't think it's a good idea to go to the expense of a wedding if you are going to be bringing a big financial problem to the marriage.

Apart from that, you have a huge problem if you have a mortgage with someone who is irresponsible. It is one loan and not two loans. If he refuses to pay, you are responsible for the entire payment.

How much is the negative equity on the house? The bank might let you sell it now but you would still owe them any shortfall not covered by the sales proceeds.

Brendan
 
We did try to sell it about 6 months ago, and dropped the price as low as 200k which would have left us with about 75k outstanding but couldnt find a buyer. I'm pretty sure the bank wouldn't even allow us to sell it for 200k...
 
hi
Im in similar position except negative equity is bigger than yours and im in joint mortgage with an ex. Wud be interested to know what the bank will do for you.
Not sure if they offer anything where they split the mortgage or loan into two so ur not liable if he doesnt pay his half?
 
Ha - chance would be a fine thing :)
I doubt I'll be that lucky. I spoke to a friend who recommended talking to FLAC (www[dot]flac[dot]ie) to find out where I stand legally in this type of situation. I'll let you know if anything comes out of it.
 
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