J
Jeanc
Guest
Hi
I am separating from my partner (not married). We brought a house last October and obviously are now in a negative equity situation. The mortgage was for €540k and I estimate its worth €500k now, assuming it can be sold. If we go with this option, sell the house for €500k and then split the balance thats owing (€40k) how does the bank handle this? If I don't have €20k to pay back the bank do we have to get a personal loan to cover this?
The only other options I can think of are:
(1) Rent house out + put rental income towards morgage
Possible option but rent will only cover 50% of mortgage. We could both supplement the mortgage for a few years and then sell when the market recovers - this sounds like a big risk though. Is this a possible option?
(2) Buy out my partner
Possible option but I don't think either of us have the cash for this.
Are there any other options?
Jean
I am separating from my partner (not married). We brought a house last October and obviously are now in a negative equity situation. The mortgage was for €540k and I estimate its worth €500k now, assuming it can be sold. If we go with this option, sell the house for €500k and then split the balance thats owing (€40k) how does the bank handle this? If I don't have €20k to pay back the bank do we have to get a personal loan to cover this?
The only other options I can think of are:
(1) Rent house out + put rental income towards morgage
Possible option but rent will only cover 50% of mortgage. We could both supplement the mortgage for a few years and then sell when the market recovers - this sounds like a big risk though. Is this a possible option?
(2) Buy out my partner
Possible option but I don't think either of us have the cash for this.
Are there any other options?
Jean
