Negative equity and broken relationship

W

Wicklow23

Registered User
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I am looking for some advice, I have already sought professional legal and financial advice however I seem to be going around in circles! The synopsis of my situation is;
In 2005 I was given 100% mortgage of 500k for an apartment with my then fiancé. In 2008 the relationship ended at much the same time the property value crashed. I immediately contacted BOSI to inform them of the changed circumstances and seek advice. The co owner has since absconded out of the country and has contributed nothing in over 18 months. I am left holding the can. I am trying desperately to engage with certus/BOSI but in 4 + years have achieved little progress other than to secure intermittent interest only periods. This is a tracker mortgage. I have written multiple letters and have found it exceedingly difficult to engage with certus. I have since remarried and would love to be able to move on with our life but I can see no way out and feel quite hopeless.
Can anybody offer us any advice as to what we should could do (insolvency is not an option for me as my profession does not allow it)
I would greatly appreciate any constructive advice, this is an extremely emotive issue for us which is essentially dictating our lives
 
Hello Wickow 23 and welcome to AAM. Is that any possibility you would be able to post up all the figures, all mortgages all debt and who owns what. It's very difficult to give you advice without that.

There is rarely a situation in life that is hopeless. By posting on here, maybe you will get some good ideas, or at least understand exactly what can and cannot be done.
 
Thank you for your replies. My ex is no longer in Ireland and is out of jurisdiction. He hasn't contributed anything to the mortgage in over 18 months.
I was given 100% mortgage on 500k in 2005 by BOI. In about 2007 this was moved to BOSI and a student loan of 20k was rolled in, so the balance is. Approx 490k. It is a tracker, the only positive! The apt was recently valued at 225k. My husband is not involved in the property other than we have to live in it, but he is back in college trying to retrain as teacher as his family joinery company collapsed 2 yrs ago.
So it is in 50% negative equity. The only way I can contact my ex is through solicitors. I am unable to go bankrupt due to my career and unsure if the insolvency bill would be of any benefit. All we want is to be able to move on somehow someway, we feel so trapped in this situation
 
All details re loan etc as suggested by B Burgess

Personal and income details
Income self: I am currently PAYE but am on the brink of signing a partnership
Income history: I have been working continuously since graduation in 2005
Income partner/spouse: part time civil servant and student
Income history:
number of children: nil
Amount of Mortgage Interest Supplement received:nil
Home loan
Lender: BOSI
Amount outstanding: 499k
Value of home: 225k
Interest rate: 1.75 tracker rate
Monthly repayment 1550
Amount in arrears 1256

Summary of discussions and agreements with the bank- To date in 4 years they have agreed to one interest only payment I am currently awaiting their decision on my most recent interest only application which I sent on the 1/8/12- they lost forms etc



Other loans and creditors - delete those which don't apply to you

Credit Union e.g. Loan of €16000 against shares of €8000
Student Loan -5000

Other savings and investments
Nil

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.
The sooner I can get rid of it the better, it is stiffling our ability to progress in life and I resent it.

Any other relevant information
This property was bought with an ex partner who has since left the country and is not contributinh to this mortgage, I have been left with it and all the negative equity, It is not a suitable home for our needs and we want to be able to move out and on with our lives. However due to the fact that haqve exited the market we are in an impossible situation where no other bank will look at us due to the extent of negative equity.
Surely jointly and severely liable cannot be considered fair in these exceptional times where negative equity is at extraordinary levels??
Any help advice would greatly be appreciated
What is your preferred realistic outcome?
For example: "I will never be in a position to repay the home loan. So I want to sell the house and deal with the shortfall"
 
I have highlighted the problem of people splitting up in negative equity in this Key Post

I suggest that you start by studying this in some detail.

I have already sought professional legal and financial advice however I seem to be going around in circles!
Click to expand...
As a high earner who has a joint and several loan with someone who has defaulted, you are in a very bad position. A brilliant solicitor or a brilliant financial advisor can't rectify this.

Let's look on the positives in this. You have an apartment worth €225k.

This is costing you €8,700year in interest. To rent anything similar, would probably be higher.

So first decision: Pay absolutely nothing more than the interest only. If you pay capital, you are paying the debts of your ex. BoSI won't like this, but you have no other choice. This is risky as I point out below.

Second decision: Write to BoSI and set out the situation. Tell them that you are willing to sell the apartment in an orderly manner to maximise the money which they will get. But they must agree to write off all claims against you i.ie. they must write off the shortfall. Unfortunately, your ex will have to agree to the sale as well or they BOSI will need to go to the High Court to seek repossession.

BoSI want out of Ireland and may agree to a deal. They probably won't write off the full shortfall, but they will adjust it for the tracker - so maybe they will agree to write of around €80k.

As your ex is part owner of the house, he has to agree to the sale and may refuse. In which case, you either go to the High Court or BoSI get a repossession order.

You should agree to pay the €20,000 student loan off in full as part of the agreement. It has nothing to do with your ex.

There is a risk in switching to interest only, but it's a risk that you have to take. I presume that you have a high income as you refer to a partnership. Under the circumstances, BoSI may go after you for any shortfall if they don't accept the agreement with you.


The Personal Insolvency Bill could be more harm than good to you

It's aimed at people who are insolvent. If the cost of servicing your loan is only €4,000 a year, you will be able to meet your repayments as they fall due. You will not be insolvent. You could argue, that as your liabilities exceed your assets, you are insolvent, but that is not the definition of insolvency in the Bill.

Your ex could conceivably declare bankruptcy or go for a PIA under the bill, and could escape his liabilities. You would then be jointly and severally liable.

You could take advantage of this by going bankrupt in the UK, but I presume this would finish your career?

You may have to let your ex off the hook

It's possible that you may be able to do a Personal Insolvency Arrangement under the new bill. But BoSI could easily veto it, so you need their agreement.
 
Brendan,
Thank you so much for your advice, your assumptions are all correct, and bankruptcy is a no no. I will take a look at your key post and am in the process of writing a proposal to BOSI, I am not hopeful but think it is worth a shot. I am not trying to shirk repayment but simply trying to create a situation conducive to us moving on with our lives, surely jointly and severally liable in these times of unprecedented negative equity is unrealistic...
 
Wicklow23 said:
surely jointly and severally liable in these times of unprecedented negative equity is unrealistic...
Click to expand...

Not really. That is why it exists. The bank lends more to joint borrowers. It might not have lent to your ex on his own. In a sense, you have gone guarantor and now you have to face the cost of this.

The more I see of these awful, insoluble cases, I wonder whether joint loans should be banned. Let the lender assess each borrower separately. They would be less blinded by the romance of it all.

Brendan
 
@brendan Is there any mileage in making sure BOSI have the contact details of the coowner and reminding them that they must make efforts to contact the coowner.

You could sue your coowner - or negotiate a settlement.

Are you living in apt?
 
I have repeatedly tried to pass on his contact details to BOSI but they won't accept his new address unless he puts it in writing himself!?! Which of course he won't. Consequently they keep sending all his mail to the apt here, very frustrating
 
Are BOSI actually writing to you?

Or is it Certus who have a disclaimer on the bottom of each letter?
 
We do not know one piece of important information and that is OP's salary and the potential earnings when she becomes a partner in the firm
 
If Certus refuse to act on the address supplied by yourself I would be inclined to swear an affidavit and get it sent to them by a solicitor noting all the contacts and keep writing to them.

I take it on every single arrears case that they follow up on, they do not await the borrower to contact them and wave their new address.

Get stuck into them.
 
I have had written replies from both BOSI and Certus but that is probably because I am constantly writing to then! My salary is 85k and partnership is a work in over 3 years so jump in salary small enough 1st year.
 
Look at the bottom of the last letter you got from Certus. Maybe google them.
 
Who are Certus

I heard that a person went into certus to serve papers on BOS and were told they are not agents for them in Ireland.
 
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