Mortgage Options - Negative Equity Trade Down

Fusion251

Hey Everyone,

I've been trying to work out best options on my mortgage. The situation is as follows and as the bank aren't much help I thought boards user may be a little more useful

I currently have a mortgage with my ex partner. She lives in the house presently and rents out two of the rooms. Even at this it is proving difficult to meet mortgage payments.

We went to the bank to discuss options around a Negative Equity Trade Down where the property is sold and then the deficit is split into two mortgages of a lower value and we go our separate ways. They had no expertise in this and instead offered a split mortgage which is not helpful at all.

I was just wondering if anyone has been in this situation and found a resolution?

I know there's an option of handing the keys back and then being left with a large debt after the bank sell the house, but the debt is still tied to both of us and not separated based on our financial situations.

Any help would be very much appreciated and if you need to know more info just let me know

All the best!!

chris85

Fusion251 wrote: »

Hey Everyone,

I've been trying to work out best options on my mortgage. The situation is as follows and as the bank aren't much help I thought boards user may be a little more useful

I currently have a mortgage with my ex partner. She lives in the house presently and rents out two of the rooms. Even at this it is proving difficult to meet mortgage payments.

We went to the bank to discuss options around a Negative Equity Trade Down where the property is sold and then the deficit is split into two mortgages of a lower value and we go our separate ways. They had no expertise in this and instead offered a split mortgage which is not helpful at all.

I was just wondering if anyone has been in this situation and found a resolution?

I know there's an option of handing the keys back and then being left with a large debt after the bank sell the house, but the debt is still tied to both of us and not separated based on our financial situations.

Any help would be very much appreciated and if you need to know more info just let me know

All the best!!

It is not in the interest of the bank to do this basically. The current mortgage agreement has you both equally and severely liable for the entire balance which is better than you both responsible for half of it. Consider if there was a shortfall of €100k following sale and they split this into €50k each. What happens for the bank if one of you just decides not to pay and leaves the country. They cant chase the other person for this €50k. But if they dont split it they have two parties responsible until the entire debt is cleared. If one person takes off and doesn't pay the bank are within their rights to chase the other party for it.

Fusion251

Thanks for the info, thought as much to be honest. Are there any other people in similar situations that have come up with a solution?? Interested to hear any suggestions.

Cheers