I'm posting this for my other half. Any advice would be great as he is very stressed about it..
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My ex and I bought a house together at the height of the boom. Now, 8yrs later we have a house that we need to sort out. I've moved out and I'm now renting elsewhere and he is living with his new partner in the house. This isn’t an issue. Currently, they are paying the mortgage (€1000 pm, see below). (Originally, we both continued to live in the house after the break up, then rented it for a year where we both subsidised it and now he is living there with his new partner.)
When we broke up, we originally made a deal with the bank for interest only payments but this has increased over time to €1000 per month with 6 month reviews. All had been going well until this last review where the current repayment plan was denied and they have requested we pay the full mortgage. I understand that the long term sustainability of not paying the mortgage in full is not an ideal situation.
Currently, we're paying only €1,000 on a mortgage which should be €1,300 as we just can't afford it. The house is probably worth about €160k and the mortgage outstanding is around €320k. What with increased tax, petrol and no pay increases etc, we cannot make the full payments while trying to service our other short term debts with this. Looking to rent a room is out as the house is quite rural and there isn't a huge demand for this.
The bank have requested that we stop paying the short term (credit union/credit cards/car loans) debt and focus on the mortgage. However, going down the route of defaulting on paying short term debt is not an avenue either of us want to go down. We’d prefer to pay something to everyone and pay all debt off eventually.
We appealed this latest decision and weeks later it was denied again so now we're left with mortgage arrears as the old payment plan did not continue on.
A few questions..
1) If the €1,000 continues to be paid (without any formal agreement or approval by the bank) can the bank repossess even though it's only a €300 shortfall?
2) Would it be possible to get some sort of legal agreement drawn up that removes my interest in the property if my ex was somehow able to meet full repayments? I would be agreeable to this as at this stage we’d both like to have something concrete set out so we can both plan our futures.
3) Are banks doing any deals where we could sell the house and split the negative equity – how feasible would this (€60k loan each) even be? Would there be any write down? Would they need to see big arrears before they would even enter discussions?
4) Anybody got any suggestions as to what we could possibly do? Both parties are not in a position to buy the other out.
Thanks for any advice,
K.
____________________
My ex and I bought a house together at the height of the boom. Now, 8yrs later we have a house that we need to sort out. I've moved out and I'm now renting elsewhere and he is living with his new partner in the house. This isn’t an issue. Currently, they are paying the mortgage (€1000 pm, see below). (Originally, we both continued to live in the house after the break up, then rented it for a year where we both subsidised it and now he is living there with his new partner.)
When we broke up, we originally made a deal with the bank for interest only payments but this has increased over time to €1000 per month with 6 month reviews. All had been going well until this last review where the current repayment plan was denied and they have requested we pay the full mortgage. I understand that the long term sustainability of not paying the mortgage in full is not an ideal situation.
Currently, we're paying only €1,000 on a mortgage which should be €1,300 as we just can't afford it. The house is probably worth about €160k and the mortgage outstanding is around €320k. What with increased tax, petrol and no pay increases etc, we cannot make the full payments while trying to service our other short term debts with this. Looking to rent a room is out as the house is quite rural and there isn't a huge demand for this.
The bank have requested that we stop paying the short term (credit union/credit cards/car loans) debt and focus on the mortgage. However, going down the route of defaulting on paying short term debt is not an avenue either of us want to go down. We’d prefer to pay something to everyone and pay all debt off eventually.
We appealed this latest decision and weeks later it was denied again so now we're left with mortgage arrears as the old payment plan did not continue on.
A few questions..
1) If the €1,000 continues to be paid (without any formal agreement or approval by the bank) can the bank repossess even though it's only a €300 shortfall?
2) Would it be possible to get some sort of legal agreement drawn up that removes my interest in the property if my ex was somehow able to meet full repayments? I would be agreeable to this as at this stage we’d both like to have something concrete set out so we can both plan our futures.
3) Are banks doing any deals where we could sell the house and split the negative equity – how feasible would this (€60k loan each) even be? Would there be any write down? Would they need to see big arrears before they would even enter discussions?
4) Anybody got any suggestions as to what we could possibly do? Both parties are not in a position to buy the other out.
Thanks for any advice,
K.