50% negative equity; ex not paying, BOSI loan

L

Lords

Registered User
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2
Personal and income details
Net €2,200pm
Income history: Just started in this job April 2013. When I bought the house I was on 20k more but I was made redundant, have worked since on lower wage.
Net income partner/spouse: None – he is not contributing:
number of children 0
Amount of child benefit received 0
Amount of Mortgage Interest Supplement received nil
Lender: BOSI
Amount outstanding:€425,000
Value of home: €220,000 (based on neighbour’s valuation – they have kitchen extension, converted attic, so mine prob 200k?)
Interest rate: Tracker, ECB + 1.25%
Monthly repayment: €1,249 after TRS
Arrears 0


Summary of discussions and agreements with the bank
None beyond telephone – have completed SFS in January no response, no response to repeated requests for meeting.


Other loans and creditors
None – credit card hardly used

Other savings and investments
None

How important is retaining the family home to you?
I would like to keep it, but will get rid of it if it means I can get rid of the mortgage associated with it.

What is your preferred realistic outcome?
I will never be in a position to repay the home loan. I want to put a proposal to BOSI to pay what I can afford but if they do not accept it I would happily walk away from this situation.

Bought in 2007 with ex-husband (Australian). Married in Australia.
Split up with husband 2011
He lives there, has sent me Australian divorce papers
Divorce does not deal with overseas property; I know that bank will not chase him abroad for the debt so it is left up to me.
I have been using a mixture of savings (gone) and tenants (just moved out) to pay the mortgage.
I’m 39 and not interested in sharing my home again.
At this stage if I had to I would walk away from the property. I can’t do anything, go anywhere, pay for study etc – life has been on hold since I was made redundant.

I have contacted Certus several times in the last year to sit down and discuss my situation. I filled out their SFS, and returned it with bank statements and payslips in January and have not heard anything back.
I rang them again two weeks ago and was told I would receive a call within two days – nothing so far except a letter to say that they were investigating my complaint. I didn’t make one! I asked for an urgent meeting to discuss what I feel is an unsustainable situation.

My proposal (should I ever get in front of them)
To date I have paid €95,000 (fixed for first three years on high rate)
I propose to pay €800pm which I feel is affordable as I am also paying life insurance, general house insurance and covering costs of repairs alone. Over a 35 year term = €336,000
This more than covers the original loan of €450,000.
BOSI get their money back and I can stay in the house.
Failing an agreement I would walk away and let them sell it at what I think would be a substantial loss.
I have just cancelled my direct debit to them and am planning to pay the 800 this month – I can’t afford any more.
Any thoughts on whether this is a good proposal, a good course of action and how to get them to even call me to arrange an appointment?????
 
This is a tough one. When you are in a joint mortgage and the other party just absconds, there isn't much you can do.

I discuss it systematically in this Key Post What if my ex moves out and point blank refuses to contribute to the mortgage or even discuss it?

I suggest you tell them the problem and just pay the interest only indefinitely.

If you pay any capital, you are paying off your ex's negative equity. You are co-operating, he is not. They can pursue him if they wish.

€425k @ 1.75% = €600 per month. You are unlikely to get accommodation anywhere for less than €600 per month, so it's good value.

BoSI will eventually takes steps to seek repossession and you can offer to sell it voluntarily. They won't agree to write off the shortfall before you sell it, but they probably won't chase you for it. If you do sell it, and they don't then agree to write off the shortfall, apply for a Debt Settlement Arrangement which they probably won't object to.

Brendan
 
I’m 39 and not interested in sharing my home again.
Click to expand...

Your options might be quite limited here.

You can live in your current home on your home for a good while paying just the interest.

if you surrender your home, what will you get for €600? A bedsit on your own or renting a room in a house with others?

I would think that you are better off renting out a room in the house you own to someone you choose and to someone you can get rid of rather than trying to find a house to share with others at age 39.

You could rent to a student for the academic term. Or you could rent to someone who goes home at weekends.
 
If ex has sent you divorce papers I assume you have his address, solicitor details etc in Australia. I would pass these on to the bank as they might well chase him if they have such information.
 
If he has sent you divorce papers, does he need your co-operation?

You can refuse until he pays half his negative equity. If he agrees to this, you would be in a very good position. A cheap tracker in less negative equity.

What does your solicitor say?
 
Brendan Burgess said:
This is a tough one. When you are in a joint mortgage and the other party just absconds, there isn't much you can do.

I discuss it systematically in this Key Post What if my ex moves out and point blank refuses to contribute to the mortgage or even discuss it?

I suggest you tell them the problem and just pay the interest only indefinitely.

If you pay any capital, you are paying off your ex's negative equity. You are co-operating, he is not. They can pursue him if they wish.

€425k @ 1.75% = €600 per month. You are unlikely to get accommodation anywhere for less than €600 per month, so it's good value.

BoSI will eventually takes steps to seek repossession and you can offer to sell it voluntarily. They won't agree to write off the shortfall before you sell it, but they probably won't chase you for it. If you do sell it, and they don't then agree to write off the shortfall, apply for a Debt Settlement Arrangement which they probably won't object to.

Brendan
Click to expand...
What are the chances of the bank not pursuing the shortfall?
 
Very hard to know.

She has a net income of €2200 per month, so after paying rent, there wouldn't be much to go after.

It's BoSI who want to exit the Irish market, so they might be just pleased to get rid of their tracker.

They probably won't agree to write it off unless she can produce a lump-sum, but even around 10% would probably do it.

however, if she applies for a DSA with a very short period on the grounds that she has very little money, I doubt if BoSI will bother vetoing it.

Brendan
 
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