Selling property in negative equity- break-up

W

Wany

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Myself and my partner have just split up and we are in a bit of a tricky situation with the house we purchased two years ago. The value has dropped significantly and we are now in negative equity of over €35000, that is not including money lost paying stamp duty etc also. Neither of us earn enough to take the mortgage on alone as far as I can see and the property is now worth less than the mortgage value. At the moment I am going to try and stay there and rent a few rooms out to cover it for the next few months. Can anyone advise me what my options are, can you sell a property in negative equity? Will the bank release thedeeds to sell it if what we are offered is less than the property value and we would continue to pay off the remaining mortgage?
 
Sorry to hear about the break-up.

You can't sell the house until the entire mortgage can be cleared from the sale, or a combination of the sale proceeds and other funds. So if you want to sell, you can only do so if you can make up the shortfall yourselves.
 
Thanks. Is it possible to have someones name taken off the deeds of the property if its amicable instead of the person who is taking on the mortgage having to apply for a new one? Will there be any tax due if we were to try come up with the funds to clear the mortgage?
 
You can sell a house in negitive equity, but you will need to consult the bank first. Depending on your circumstances and your ability to pay, the bank will allow you to take a personal loan for the remaining amount of the mortgage. Seen there is two names on the mortgage, it will probably be 2 personal loans, your bank will beable to give advice.
 
yes it is possible to have someones name taken off, once the new person and the person left on the mortgage qualify to take on the mortgage.

Ive just done this myself, me and my ex broke up and i took over mortgage, but had to get my mam to go on it as i didnt qualify to keep the mortgage on by myself as i didnt earn enough.
 
Thanks Andrea79, can you tell me if your property was in negative equity at the time and if so how that worked? I have been advised that the bank will not release the deeds on the house until the mortgage in full can be paid off, so basically we would need to pay them the defecit of €40,000 and then re-apply for a new mortgage, but if I was to apply for a loan of that amount I would not then qualify for the new mortgage as my debt ratio would be too high? Was the process easy for you? Where did you seek advice from and was there any option to sign the property over to one of you if the other person was in agreement without the need for a new mortgage application?

Thanks
 
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