Negative Equity problems with Ex

SineadMarie · 01-02-2012 2:50pm #1

Hi, I will try keep this brief but Im looking for some advice. Bought a house with my ex in 2007 for 295k we split up over a year later but remained in the house for a short time while we decided what we were going to do. We got back together once and broke up again. He decided he would move out and we could rent out a room to a friend. At this time he was still coming and going as he pleased. He then turned into a psycho and decided he missed me too much and wanted to move back in and try again which I did not want. I started to see someone else casually and when he found out he let himself in one night we were all out trashed the house and took my dog. I decided I had enough, he was saying because it was his house he was going to move back in (sleep on the couch) as it is only a 2 bed and the other room was rented. I told him that was fine it was his home too but if he moved in I would be leaving. We agreed to that, and he decided he would take over sole ownership of the house. The banks rejected his application but he still didn’t want me in the picture and said he’d move in and rent a room out. So I walked away. A year later I get a text from him saying the tenants (his brother) was moving out and he wanted half the mortgage from me. I was renting and told him the best thing would be to do is get new tenants in so I organised everything, to this day we have wonderful tenants in no trouble from them and most of the mortgage is being paid. We have to contribute and extra 85 euro to it each month which isn’t too bad. The only time we have to be in contact is if there’s a problem or house insurance etc has to get paid. He basically couldn’t care less and everything left up to me now! Anytime I contact him he loses it and I get abusive messages / emails saying he wants out as he’s in a new relationship with a baby on the way. Trust me if I could I would take over the mortgage. The house is in negative equity by about 150K he wants to sell and pay the NE off as a personal loan, which I doubt the banks would even agree to plus I’m not happy about paying off a dead loan. I texted him about the household fee and hes refusing to pay that out of protest but has agreed to pay it if I agree to take his name of the mortgage, which isn’t possible! Basically I’m dealing with a nutcase! He won’t listen to reason and I’m afraid he going to put a stop to paying his share of the mortgage, how I’m going to get money of him for anything else in beyond me. Financially I’m not in the best position and I cant really afford a solicitor. Sorry for the huge thread but if theres anyone that can advise me on what to do I’d appreciate it.

Marcanthony · 01-02-2012 3:28pm

your in a right predicament there. if you cant get personall loans between you to cover the additional cost after a sale.I would say the best thing to do is form some kind of contract as a business partership with certain criteria attached (terms and conditions) . Until your in a postion to clear the slate.

I would say a solicitor would be the best road to go. It may cost you money in the short term. But probably save you thousands in he long run.

you will need to mitigate the situation at some stage and best done sooner than later.

Zamboni · 01-02-2012 3:49pm

Your best possible current solution is to get the bank to allow a sale and get the NE turned into two separate equal personal loans.
Actually from what I can see, that is the only solution.
The banks may not allow it at the moment but you should fight/demand it until you get it.
It is really the only way you can honour your debt without you or your ex partner having anything to do with each other.

SineadMarie · 01-02-2012 3:57pm

It is tempting to get rid of the situation but your talking about 75k that i need to pay back for nothing. How would that even work and the repayment each month even if the bank would agree would kill me. I was thinking eventually i could get the mortgage on my own maybe.

Zamboni · 01-02-2012 4:09pm

SineadMarie wrote: »

It is tempting to get rid of the situation but your talking about 75k that i need to pay back for nothing. How would that even work and the repayment each month even if the bank would agree would kill me. I was thinking eventually i could get the mortgage on my own maybe.

Well leaving my option aside (assuming it is possible at all) you are looking either

Having to deal with a person who you obviously dislike for the remaining term of the mortgage. Decades of hassle?

Or

Buying him out. Which would be crazy as you are then accepting his liability for the negative equity and you are allowing him off scot free.

Regarding having to pay 75k loan for 'nothing'.
As it stands, that is the current price of your bad investment in the property market. It could be worse if property keeps falling in value.

SineadMarie · 01-02-2012 4:13pm

I know what you mean and if i could afford it i'd do it in a heartbeat. I'm just in a really difficult place

the groutch · 01-02-2012 4:15pm

try to come to some agreement involving neither of you living in the house, renting it out in full to a 3rd party, and the shortfall in the mortgage being split.

Marcanthony · 01-02-2012 4:21pm

the groutch wrote: »

try to come to some agreement involving neither of you living in the house, renting it out in full to a 3rd party, and the shortfall in the mortgage being split.

as part of a contract drafted by a solicitor.Or he /you can avoid the agreement and youll end up back in the same situation.

iguana · 01-02-2012 4:24pm

What way did you buy the house together? Are you tenants in common or joint tenants? If you are tenants in common that means you both own your own share of the house and have responsibility for that share of the mortgage. If you are joint tenants then you are both independently fully liable for the mortgage and if he stops paying you can be pursued for the whole amount.

SineadMarie · 01-02-2012 4:26pm

We took out the mortgage together jointly in 2007

iguana · 01-02-2012 4:30pm

SineadMarie wrote: »

We took out the mortgage together jointly in 2007

Yes but which way? Tenants in common and joint tenants are the two ways of buying jointly. Basically whichever box you ticked on you application when you bought will make a huge difference to the liability you face now. If you don't know off the top of your head you should check your documentation and find out.

SineadMarie · 01-02-2012 4:39pm

Aw thanks no i'm not sure but i will check thanks

Marcusm · 01-02-2012 5:12pm

iguana wrote: »

Yes but which way? Tenants in common and joint tenants are the two ways of buying jointly. Basically whichever box you ticked on you application when you bought will make a huge difference to the liability you face now. If you don't know off the top of your head you should check your documentation and find out.

Tenants in common/joint tenancy is only really relevant to the ownership of the property; the mortgage loan will almost certainly be a full joint and several obligation, i.e. either party is fully obligated in the event of default by the other.

phormium · 01-02-2012 7:10pm

Tenants in common etc is not relevant to the mortgage, they will both be jointly and severally liable for the mortgage, if one cant pay the other must pay the lot in other words. Bank could also want the loan to pay the shortfall in joint names as well so may not get rid of him that way either.

Go arrange a free legal appointment through your local Citizens Information Service, you will get short appointment with a solicitor who will at least point in the right direction before you start paying for legal advice.

Negative Equity problems with Ex

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