Joint mortgage with ex-boyfriend, house in negative equity

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Sara

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I took out a joint mortgage with partner in 2008. In 2009 we split up. Since then I have lived in house and paid mortgage on my own. I acknowledge my resposibility in that contract was signed etc. The house is probably 150, 000 in negative equity. I have a permanent public service job. I cannot take over mortgage in my own name (despite reaching monthly payment for past 3 years), cannot sell as in negative equity, but I don't want to be tied to ex forever...Bank unwilling to offer any way out. I am willing to keep paying mortgage but obviously dont want ex's name on deeds if Im only one paying for house. Any advice please?
 

Bronte

Registered User
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14,162
There is no solution to this as the bank will not agree to change the mortgage to just your name. When you are out of negative equity you can force your ex off the deeds by a court order. I suggest you over pay the mortgage to get to that stage as quickly as possible. Also you should have a clear history of all the payments you have or ever will pay, as the court will decide your share of the house based on this.
 

allie12

Registered User
Messages
88
I would get a solicitor to draw up a legal agreement between parties, outlining and confirming that partner is not and has not being contributing to mortgage for X amount of time and both parties agree that the property belongs to you outright. Get him to agree that he has no claim either now or in the future on the property.

I would then approach the bank, with said agreement and see if they will budge on changing the deeds- but still insist that they lodgea copy of the agreement to your file.

My fear would be waiting for it to come out of negative equity that the ex may then decide he wants half!!
 

44brendan

Registered User
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2,538
Sounds very dodgy. Yes, you could in theory take a court case against the joint owner on the basis that he wasn't contributing to the loan repayments. However, there is no guarantee that the result would be an order to remove him from the title to the property.
Best option if joint owner refuses to engage, is to consider moving totally from this property and engage with the Bank on this basis. Otherwise the whole process can end up very messy!
 

purple17

Registered User
Messages
16
Hi im in the exact same situation with a 4 year old daughter in the loop and 150k neg equity. Bank wont let me take it on solely as salary isnt sufficient.
Ive been paying mortgage and everything for house for last 3 years as we're on a tracker so repayments not that bad.
He refuses to contribute or sign an agreement waivering his interest in the property even though i would be relieving him of his share of €150k debt if we sold.
He wont even answer calls or emails and ive highlighted our options to him. If I rent it out the rent wont cover the mortgage (short €300pm).

Should I move out or only pay 50% of mortgage to make him and the bank pay attention but it'll be my name blacklisted? I really need to sort asap as I need to put money into house for repairs and wont do that if his name still on mortgage and he wont pay his share. It'll be him crawling out of woodwork when house goes back to positive equity.
 

44brendan

Registered User
Messages
2,538
It's no consolation that you are one of a number of people in this position. Look back over many previous threads re people seeking advice.
Currently there is no ideal solution to those in your position.
The house is in negative equity and you are only a joint owner. If the other joint owner fails to engage with you or the Bank I would seriously consider moving out of the property. The difficulties in doing that is that you are still liable for the full mortgage and the property cannot be sold without the co-operation of the joint owners, or the Bank taking Court proceedings. However you are currently in a reasonably strong position to negotiate with the Bank. I.e. If you voluntary give up posession of the property to the Bank it will help in achieving a sale. You are probably stretching yourself to pay the full mortgage currently, so I'd certainly look at reducing the amount you are paying. Use the MARP process to do this. I would advise also writing to the Bank and advising them exactly of your situation. Let them know that you are prepared to co-operate in relinquishing posession of the property provided that they agree to an acceptable solution on your ultimate liability.
Hopefully this will work. Unfortunately, many of those working in Bank ASU units are unable to get a decision on an issue like this and they tend to issue stupid responses to sensible suggestions because of that. It would help if you know a solicitor who could phrase the letter appropriately.
 

Bronte

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14,162
Should I move out or only pay 50% of mortgage to make him and the bank pay attention but it'll be my name blacklisted?.

Why would you do that. The bank will come after you. Does your ex have any assets or a job. You are both liable for the full amount. Keep a record of all mortgage payments you've paid, look out your purchase documentation and put all financial contributions to the initial purchase that you paid into a file and keep that file in a safe place with a copy somewhere else. In addition do your repairs and keep all the receipts in that file. If in the future you go too court over equity in the house, or to get him off the deeds it will help you to prove the financial contribution you alone have made to the house. Also keep the proof of what he has contributed. It may or may not be many years but that file will be very important.
 
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Sara

Guest
Thank you for the responses. It is a very difficult situation. The banks rationale that they have two people to go after just doesn't cut it. The ex is completely unwilling to lose a cent. I have a permanent civil service job and am paying mortgage in full every month, surely in the current climate that competes with bank being able to go after two people. The bank says I can't afford to take on this debt so maybe I should just agree with them, stop payments and then see if they are willing to do something?
I would love to hear if there is anybody who found a way of sorting this kind of situation.
 

partnership

Registered User
Messages
434
I would look to sell the house and do a deal on the negative equity if they wont allow you to take on the full mortgage. Play hardball with them as they will be the losers. They have nothing to lose by letting you take it over.
 

Bronte

Registered User
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14,162
The bank says I can't afford to take on this debt so maybe I should just agree with them, stop payments and then see if they are willing to do something?
.

How is this going to solve anything. The bank will take you to court and force you to make the payments and that will cost you. You could be talking thousands if they go to court. Plus back interest on the mortgage, fees and no doubt penalties. Because you have a good permanent job you are more of a mark then your partner.

Does your partner have a job or assets?
 

purple17

Registered User
Messages
16
Sorry sara to jump into your thread but my partner does have a job but no assets. That's why I suggested only paying 50% of the mortgage. It's very hard to continue to pay the full mortgage and put money into a house when another person owns the property also and gets away with not contributing so I understand what you're going through Sara.
 
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seahawk

Guest
Hi Guys, am new on this fourm but am in a very similar situation and have been searching the internet for a solution. Facts of the situation are as follows, my partner left in 2007 and we have two mortages, main home and investment property. Last year my ex stopped paying towards both mortgages. Both properties in negative equity, I am luckly that I have a relatively good job and am just about able to make the payments each month but mostly I end up over drawn and playing catch up just to put petrol in the car.
My solicotior says I can not sue for non payment as were are married and going through the divorce process. I can't just stop paying the mortgages as this will destroy my credit rating and the chances of ever getting another loan. Bank won't sign over main home to me as ex will not sign seperation agreement or deed of waiver.

In summary there is no way out of this, I can't walk away either because I love my home and would like to keep and if I did walk the bank will want the balance of their negative equity.

So if there is a solution to this I would be delighted to know, but so far am holding out for my day in court and hoping the judge will allow me to keep the house and prehaps make the ex take on the other loan. It's a mess...ideas welcome
 
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seahawk

Guest
I have a quick question for anyone that may know, I found this on the Key Post thread on court case proceedure

By the way, it should also be noted that inability to pay is not a defence. And a notice of intention to defend should not be lodged on this basis or for an opportunity to explain to the court how and why you have fallen on hard times. The Judge is only interested in whether the money is properly owing by the defendant, if it is then Judgment and costs will be have to be granted against him/her.

If then I stopped paying both my Mortgages and asked the banks to take us to court for non payament and explained to the judge the situation, could they then enforce an order of your partner to pay the arrears owed???
 

Bronte

Registered User
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14,162
If then I stopped paying both my Mortgages and asked the banks to take us to court for non payament and explained to the judge the situation, could they then enforce an order of your partner to pay the arrears owed???

If you stop paying the bank will take both of you to court. But if your ex cannot afford the mortgage the court is not going to order him to pay anything. You need to talk to your bank. Don't do anything drastic like not paying your mortgage, what has your solicitor advised you?

Is the rent from the investment property enough to pay that mortgage?
 
S

seahawk

Guest
Hi Bronte, many thanks for the sound advise, I think I will approach the bank again, but as they said before they don't care who pays as long as the payments are made each month. My solicitor says I cannot sue as you cannot sue your spouse, in the mean time I have to wait for a court date for a divorce hearing and hope the judge will take the non payment of the mortgage into consideration, but this date could be over a year away.

This seems to be a common situation lately for many people whose relationships have ended and one partner just walks away, from everything including their financial responabilities. I have been reading case law on BAILI looking for judgment in a similar situation but not finding anything.

The other property is a site there in no rental income from it.

I don't want to stop paying the mortgages as it will destroy my credit rating, so it seems like a catch 22 situation.
 

Bronte

Registered User
Messages
14,162
This is an interesting situation, if you go into court for a divorce, I presume the judge can decide who takes ownership of a property, but the court cannot oblige a bank to let your ex off the mortgage and allow you the full mortgage I wouldn't have though. I wonder have there been any court cases on this.

Being logical you are in the house, presumably it's in negative equity, but you are able to pay the mortgage and you want the house. But the bank won't agree.

Is there children. What does your ex want? Has he a good job and any other assets.

What is the amount of negative equity on the site, would the bank allow you both to sell it and pay back the negative equity over time. You need to be proactive at looking for solutions, with the bank and your ex. What advice has your solicitor given you?
 
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