Need 40k for my half of the negative equity in order to exit the mortgage contract

A

ando

Guest
Lender : AIB

Mortgage|€280k
Property value|€200k
Negative equity|€80k
"my share"|€40k

AIB will give me a personal loan of €40,000 over 7 years at 11% which is €655 per month to release me from the mortgage.
 
Hi guys,

I owe €40000 in negative equity and have pretty much nothing saved. I have €7000 in the credit union against a loan of €7000 which neutralizes the credit union I suspect in terms of a loan?.... and I have a mortgage with an ex partner with Aib. There is €280000 left on it. My ex is buying my house off me but I have to come up with my half of the negative equity in order to exit the mortgage contract, which will be €40k. I have been negotiating with Aib as I owe them the money anyway so I was trying to get them to split up the mortgage to two separate loans, one for my ex and the remaining house mortgage and one for my €40000. Realistically I can only afford €250 per month repayments so I'm looking at approx 15 years to pay this off which is ok with me, once I can get on with my life and for this to not impact me a huge amount. Aib have come back to me with a figure of €655.88 pm @ interest rate 11.45% for 7 years (84 months) which would have a major negative impact on me financially. I don’t know how they got that figure as 40000/100 x 11.45 = 4580 (total €44580 including interest)

Anyhow, I'm looking for ideas about getting this kind of money together. Any help greatly appreciated
 
This is exactly the kind of case that the banks should be looking to solve (as the regulator has asked). How difficult is it for them to give the OP a loan at the same rate of interest as his current mortgage plus the same term so that he can afford his payments. Here we have a couple that need their mortgage sorted and no solution. And both are willing to pay back what they have borrowed.
 
Hi guys,

Just wanted to update you all. The banks are so incredibly unhelpful it’s shocking. They ignored a lot of my calls and emails. I feel like they will only make a move and talk if I just stop paying and the mortgage goes into the red.. This has to be noted as there are so many like myself but the banks just don’t want to know. It’s extremely frustrating and off putting that they're not even open to being approached. The media tells us to just "talk" to the banks and not to put your head in the sand and hope the problems just go away, but I feel that's exactly what the banks are doing when the normal Joe Bloggs rings up looking for support... Disgraceful behaviour from them. I feel like I HAVE to stop paying the mortgage just to get their attention...

Anyway I cannot justify paying €55k for nothing, so I am not going ahead with that idea. It’s ridiculous and feels very unfair. So my ex wants to live there and I'm currently trying to negotiate. I pay €300 a month towards mortgage and she continues to live there and pay the rest (€150 extra for her per month). I still owe 50%, that part is non negotiable. We continue with this arrangement for some time until the mortgage and negative equity become more realistic for a buy out or sell etc. This is not definite yet, still negotiating with ex through solicitors..
 
Hi Ando

Could you clarify the figures for us?

I assume that the mortgage is €280,000.

The house is worth €200,000.

The negative equity is €80,000. So you have €40,000 each in negative equity.

What has your ex agreed to?

Has the bank formally agreed to take your name off the mortgage if you pay €40,000 off it?

So they will be left with a €240,000 mortgage on a house worth €40,000 and a €40,000 personal loan.

I wonder could you arrange a separate agreement with your ex?
You will renounce any interest in the house.
You owe "her" €40,000. So you pay the repayments on €40,000.

She gets to keep the house and in time, the bank takes your name off the mortgage.

Brendan
 
Hi Brendan

To clarify, Yes mortgage is €280,000

House is worth in or around €200,000 currently

Negative equity is 80,000 so yes I owe €40,000 currently

The bank has not formally agreed to take me off mortgage, they hinted that they would be "favourable" to the idea of my ex taking the house if I could come up with my half of the negative equity in one large sum... I cannot so I then tried to negotiate with the bank so that they could split the 280,000 owed to be 240,000 for my ex and a separate load of 40,000 for me.. That’s where the €55000 came from (Loan to pay off NE + Interest) and all the trouble of them not getting back to me and avoiding me etc..

That idea you came up with is not too bad, I will consider it if things don’t work out.
 
Hi Ando

11% seems to be an unsustainable rate. That would be around €6,000 interest a year, which you can't afford. If you can pay only €3,000 a year, then the amount outstanding would increase by €3,000 per year.

I wonder if there is any point in agreeing to this.
Get your name off the deeds and mortgage.
Then review your situation and maybe apply for a Debt Settlement Arrangement or bankruptcy to get it reduced to a more sustainable level?
 
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