I have moved out; ex unable to keep up repayments on tracker

D

daisydotty

Registered User
Messages
7
Hi everyone
Like many on here I have a joint mortgage and am looking for advice.
I am married 2 years (no children thank god). House bought in 2005. We are in neg equity of about 40-50k. Anyway I had to leave the family home in June due to his alcohol/drug abuse and subsequent off the wall behaviour. Obviously going to separate and we've agreed on that. But heres the problem. He won't vacate the house. it would be financially best to rent it. firstly he is saying he will rent it (pay the full mortgage). I'm not in agreement as he can't be trusted to pay it. He is up to date at the moment though. his job is at risk at the moment due to his current behaviour.
He's refusing to meet with me and just keeps saying he's living there.
I don't want to default on my half as I want to protect my credit rating. he knows I would probably pay the full mortgage if he defaults. and ive heard back that he intends to default.
the gas and electricity are in my name. I was going to have these disconnected. Can he reconnect them?i know it would cost me money but I just don't know how im going to get him out!!
Is there any legal way.
Have been to a solicitor briefly about the separation but didn't go into details about house
Sorry this is all over the place but any advice would be great!
thanks
 
No problem!Thanks Brendan

Personal and income details
Net (i.e. after tax) Income self: Public Sector, Permanent Net Income per month €2000
Net income partner/spouse: Private Sector, Permanent but on final warning Net Income per month 2100
Income history:
number of children 0
Amount of child benefit received 0
Amount of Mortgage Interest Supplement received 0
Home loan
Lender: Boi
Amount outstanding: €283,500
Value of home: approx. €245,000
Interest rate: Tracker
Monthly repayment 966
Amount in arrears 0
We have a joint a/c which all the stuff for the house comes out and we both put in 700 per month each to cover XYZ and a little bit left over.
Other than than we have no savings, loans, credit cards, car finance together. I just have one loan which is finished this year whereas he has a fair amount of debt with car finance, credit cards, CU loan
How important is retaining the family home to you?
Which of the following best describes your situation?

I don't care about keeping the family home. But it would make financial sense to us both to have it rented out as it has potential for €1000 per month. Neither of us are in a position to sell and split the remaining neg equity


Any other relevant information
I am about to initiate separation proceedings

What is your preferred realistic outcome?
To get him out and rent it out
 
Hi daisy

First check out this Key Post:A guide to splitting up when in negative equity

Have been to a solicitor briefly about the separation but didn't go into details about house
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Why not? This mortgage ties you both together, whether you want to be or not.

He's refusing to meet with me and just keeps saying he's living there.
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Very difficult to deal with, if he refuses to meet with you or discuss it.

You have to forget about your credit rating. It's going to be badly affected by this. I can't see any way out of it.

the gas and electricity are in my name. I was going to have these disconnected.
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Yes. Contact the suppliers immediately and get your name off the bills. No need to disconnect him. They will disconnect him if he does not pay.

Renting out the house
However, you won't be able to buy again while you have this mortgage hanging over you.
You will be tied in to him until the property is sold and the mortgage paid off
As you will be making a profit, you will have a tax liability.
Owning a rental property can involve a lot of work

You could offer to buy him out
Although the house is in negative equity, you could offer to buy him out.
You will take over the mortgage and ownership of the property.
You can then live in it or rent it out as you see fit.
He gets rid of the negative equity.
You get a profitable investment if you get to keep the cheap tracker

If he agrees, Bank of Ireland won't agree to you taking over the mortgage so you will have to enter into a side agreement

If he refuses your offer to buy him out, let him buy you out
The problem for you in this arrangement is that if he falls into arrears you will become liable in full.
You could put it in the agreement that if he falls into arrears for more than three months, you will have the right to take over the property and the mortgage

I think you have to stop making any repayments
This is a tricky one. You will get no benefit from the repayments. You are effectively paying his rent for him.
You will need to get your solicitor to write to him making the various offers and telling him that until you reach agreement, you will not be making any further payments to the mortgage.
Close the joint account from which the payment is being made.
Notify Bank of Ireland what you are doing.

If he stops paying, your credit rating will be damaged, but you are not going to be able to borrow again for some time anyway.


While he continues to make the full repayments, he is paying down the balance outstanding.

He would be reducing the outstanding balance by around €7,000 per year, which reduces your negative equity every month. Even if you have to take it over in a year or two, the negative equity will be lower. So as long as he is meeting the full repayment, the situation is improving for you each month.
http://www.askaboutmoney.com/showpost.php?p=1278706&postcount=3

 
I think you will have to let this one run its course. There's no way to speed things up. If he hasn't left the house by now, he won't without a fight. In my experience, men have to do things at their own pace. I would let him keep paying the mortgage as he says he will. We know realistically that if he is a drinker, it's just a matter of time before you get a letter from the bank advising of arrears.

Keep saving your money while he is paying this. At least when the letter arrives, which it will, it will put pressure on him to move out - leaving you to rent the property. If his life moves along in the way it is expected to, you will have a different problem in a couple of years. You will have to find a way to buy him out.

Unfortunately, you will have to let this one move forward at it's own pace. But be prepared financially for the bail-out when the time comes. And inform your bank of your current address, instructing them to write to you directly at that address so you will be fully informed as soon as something is happening about the mortgage.
 
Thanks for the reply. I have cancelled most things from the joint account like tv licence, bins and sky. im not paying half of anything when im not living there. so just to basically cover half of the mortgage and life/house ins I would only need to put in 480 a month so that's ok for now. I am going to ring ESB/gas tues with the meter readings and cancel any further Direct debits from the joint a/c but if I give them his name and number as the forth coming tenant its like im giving him permission to stay on there. according to himself he has a meeting with the bank next week to get a mortgage to buy a house!!right then.......
anyway should I advise the bank of the current situation?we have an overdraught on the joint a/c-can I cancel this without his signature?i also don't want any further direct debits out of the joint a/c to be set up. we also have another current account with 28 cent in it. can I close this without him.i'm thinking no. at the end of the day the bank couldn't give a fiddlers once the mortgage is paid but I don't know if its a good or a bad thing to advise them of the current situation
my ex is just fobbing me off and will continue to do so knowing ill keep paying my half of it. I really don't want to default but thinking I may just have to.
 
Why are you paying half of it?

You will eventually lose your credit rating anyway, when he defaults, so you should stop paying immediately.

Force him to default and you will get to resolve this sooner rather than later.
 
daisydotty said:
anyway should I advise the bank of the current situation?.
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Hi Daisy, messy situation that you're in. I assume it will all get sorted out as part of your divorce proceedings eventually but being Ireland that is years away so you need ideas for the medium term. I'm afraid I don't know about the joint bank accounts. Even my ex, hostile and all as she is, was willing to come into the bank with me to close down our joint accounts. We both needed to be there, so I'm not sure how you go about this without his consent. Can you appeal to him that it's only right and fair to meet you in the bank to close down the joint accounts? Maybe it is too early for this. Thinking back, we didn't do this til nearly a year after we broke up so maybe it will take time. In your situation though, I'd be concerned about putting money into an account that he has access to. It's all very well when trust is there but in a hostile break up situation, is there a chance he'll spend your money on drink and drugs and leave the mortgage and insurances unpaid? Think long and hard about it, especially if he loses his job.

One small thing to be aware of is that if both of you are no longer living in the house, ye're not entitled to claim double TRS on the mortgage anymore so the amount of the monthly mortgage will increase slightly. One of ye are supposed to inform the TRS department that there is now only one of ye living there.

Overall my advice would be to distance yourself from this house and mortgage. I agree with the advice given by the others above. I would inform your ex that until he's willing to start talking, you are going to stop contributing anything. And then see that threat through. Why should he talk options when he knows you're going to keep paying your half of the mortgage regardless?
 
Thanks for all the replys!
Currently He still is drinking heavily and is currently on sick leave from work. they initially paid him his wages minus his SW Illness Benefit-they agreed to pay him for 4 weeks to assist him into a treatment programme-that was 7 weeks ago and he is as bad. so now hes living on SW benefit of 188 and that would not cover his outgoings.he has car finance (quite high repayments) loans etc.
He is still in the house and I have stopped paying in my half of the mortgage. It kills me to do it but ive no option. he now states he is going to rent out 2 rooms and wont even discuss any other option. his words were "im living there, end of story, deal with it". so I told him grand, you're responsible for the mortgage from now on. its due out this fri and unless he puts money in, we're starting in arrears.
I will put money aside as if I was paying it. If I continue to pay it, then yes basically im paying his rent.
Can anyone advise on what to write to the bank? and if he does default, how long does it take to be repossessed?
As my credit rating is going to be bad, I was going to go and upgrade my car as its 13 years old. how long a bad credit rating held on the ICB. I will never get a mortgage again anyway but just for personal loans etc?
thanks
 
Hi Dotty

I think you have to just write to the bank

1) I would like to take over ownership of the house and the mortgage
2) He is refusing to deal with the issue and refusing to move out
3) I have had to move out
4) As I am paying rent, I will no longer be able to contribute towards the mortgage
5) Please send statements to this address as well, so I can be sure that he is paying the mortgage.
 
I told him that it would be the best option to rent it out for 2 years-then it would bring the mortgage down to a point of positive equity and we can sell it then. he said no hes living there, end of story, deal with it. he hasn't put money into the joint a/c and today the mortgage has gone into arrears. I think his job is gone since yesterday too.
I really do not want to default but its just a horrible situation. I know I chose to buy with him but I didn't anticipate my situation now.
I am hoping to get an annulment from my marriage (and my barrister thinks I have a excellent chance) but this only deals with the marriage nothing else.but all going well it would be dealt with by this time next year so the house wont form part of a separation agreement.
has anyone any suggestions on how I can get him out. the esb and gas were in my name only so ive closed the accounts. in the long run I don't think he can afford to even pay bills. hes quite manic at the moment and has just refinanced and bought an expensive car even though hes going to be off the road due to his 2 drink driving cases.
head is melted!!
 
Why not max out the overdraft on the joint account yourself. 1. You get the money. 2 it stops him from taking it .
 
I think that this is the best advice you can get and very well put:

cl061969 said:
I think you will have to let this one run its course. There's no way to speed things up. If he hasn't left the house by now, he won't without a fight. In my experience, men have to do things at their own pace. I would let him keep paying the mortgage as he says he will. We know realistically that if he is a drinker, it's just a matter of time before you get a letter from the bank advising of arrears.

Keep saving your money while he is paying this. At least when the letter arrives, which it will, it will put pressure on him to move out - leaving you to rent the property. If his life moves along in the way it is expected to, you will have a different problem in a couple of years. You will have to find a way to buy him out.

Unfortunately, you will have to let this one move forward at it's own pace. But be prepared financially for the bail-out when the time comes. And inform your bank of your current address, instructing them to write to you directly at that address so you will be fully informed as soon as something is happening about the mortgage.
Click to expand...
 
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