separation and negative equity

[user name]

Recently seperated. House cost 400k. Now worth approx half that amount. Mortgage 1400 or 1200 after trs every month. Both taking home approx 2000 per month. Will not be able to afford mortgage and rent. People saying throw back the keys to bank. What are our options. Thanks

 

[shesells]

You cannot give the keys to the bank and walk away...maybe in America but not in Ireland. If you are looking at negative equity of around 200k it's very unlikely that the bank will allow you to sell and take on the NE as a personal debt.

Would the house rent easily? Renting it and supplementing the rent to pay the mortgage is probably what the bank will want you to do. But you don't know until you talk to them.

 

[sean.c]

Are both names on the mortgage? I hope so. Because if the house is in one name only, the other person can indeed just walk away.

You may - with legal assistance - be able to get the bank to agree to write down the mortgage to get rid of the negative equity, and sell the house. The group New Beginnings seems to have a few successful cases. I think you should have a good chance of that, seeing as how you've seperated.

best of luck.

 

[user name]

Thanks, both names are on the mortgage.