Tough Predicament - advice needed

AidanD12

Hi
Looking for advice for a friend of mine who is in a really tough predicament and at his wits end.

In a nutshell he bought a house with his then girlfriend in 2007 for 380K. They broke up in 2009. She has basically walked away and has since relocated to the US and wants nothing to do with the house. My friend has lived in the house since then and paid as much of the mortgage repayment as he can afford. The house is in severe negative equity (current value about 170K with 350K owed) and he is unable to meet the repayments. He just wants to move on to a sustainable situation. The bank are pursuing him for the full debt. He would love to just sell the house but his ex refuses to sign anything or even communicate with him or the bank.
The bank has offered him a split mortgage but this still needs her signature which she refuses to offer and they have no other idea's.
He would consider personal insolvency but the advise he has got is that he needs her consent to any arrangement involving the house and also that the bank would likely veto it

What possible exit strategies can he pursue?

Eldarion

Bankruptcy. The bank doesn't get the opportunity to "veto" it and he doesn't need anyone's signature. Personal Insolvency may be different though.

murphaph

Has he let the spare room to make up some of the shortfall?

His ex has really landed him in it alright.

Kaycee2

Eldarion wrote: »

Bankruptcy. The bank doesn't get the opportunity to "veto" it and he doesn't need anyone's signature. Personal Insolvency may be different though.

I thought bankruptcy too but can a judge refuse the petition as the house is jointly owned? The ex could still return Ireland and be liable for her share of the debt.

If bankruptcy isn't a viable option for him then he really should look into renting out rooms as a way of bumping up his monthly payments, even if he is accruing arrears if he is making a reasonable payment based on his income then it would be in the banks interest to keep him in the house and get some kind of payment as opposed to selling the property and having to come to an arrangement for the shortfall, which would be even more difficult for him to pay when he needs to pay a rent somewhere else.

The_Morrigan

Aidan this is really something that needs to be discussed with a solr.

Electric Sheep

Kaycee2 wrote: »

I thought bankruptcy too but can a judge refuse the petition as the house is jointly owned? The ex could still return Ireland and be liable for her share of the debt.

He could continue paying the mortgage until the house is out of negative equity and his ex could still come home and claim her half of the house. Definitely see a solicitor.

Santa Cruz

Keep a good record of every penny spent on the place (also pick up any receipts found on the ground at the hardware shops etc.) Be ready for when herself comes back looking for her share. Do everything to minimise her cut

AidanD12

Thanks boardsies for all the posts. Some good tips - Keep them coming.
Bankruptcy - ya that was my instinct and advice also and seems the only avenue for him. I must look into what's involved and required. The guy is a real honest hard worker but I think this is just too hard a situation to try and get out under from, especially when the ex is not open to any compromise. As far as I know she's moved to the US for good
Solicitor - yes the solicitor has been involved for years but can't seem to suggest a viable way forward and says its a sort of legal limbo. The bank is not offering any suggestion either.
He has recently just stopped paying anything to try and force to bank to take some action and bring it to a head

AlwaysAnyTime

AidanD12 wrote: »

Thanks boardsies for all the posts. Some good tips - Keep them coming.
Bankruptcy - ya that was my instinct and advice also and seems the only avenue for him. I must look into what's involved and required. The guy is a real honest hard worker but I think this is just too hard a situation to try and get out under from, especially when the ex is not open to any compromise. As far as I know she's moved to the US for good
Solicitor - yes the solicitor has been involved for years but can't seem to suggest a viable way forward and says its a sort of legal limbo. The bank is not offering any suggestion either.
He has recently just stopped paying anything to try and force to bank to take some action and bring it to a head

Find a better solicitor, one with a history of conveyancing/tenancy/personal debt/etc. The difference between a good solicitor and not can be extraordinary in my experience. I don't really think boards.ie is the best place to seek advice on something so serious, with all due respect to the posters.

The_Conductor

AidanD12 wrote: »

Thanks boardsies for all the posts. Some good tips - Keep them coming.

Aidan- unfortunately, we're going to have it a day on this.
We are not allowed to offer legal advice on this website- your friend needs legal advice, not the musings of random strangers on an internet forum.
Please get your friend legal advice- even FLAC may be willing to assist him (often they have interns who might find the international aspect of the case whets their appetite).

Please get your friend legal advice- he needs it. We could send him up the creek without a paddle wholly unintentionally here- so we need to call it a day.

Regards,

The_Conductor