Mortgage arrears/split mortgage

noodle007

Hi,
I would really appreciate some advice.
My home is in 150,00 negative equity and I have arrears of 47,000.
I have been struggling since my ex and I broke up as I am living in the house with our children and paying what I can on the mortgage.
KBC have recently advised me that they will be basing a split mortgage on my income alone as they have deemed my ex partner to be non-engaging and non-contactable. His name is NOT on the deeds, has no equity and no savings
The amount they have offered is 50.00 less than if I was on interest only. What is the best option for me? I am a public sector employee (one of the little low paid ones), live week to week so my lump sum pension will be badly needed when the time comes. (I have two children). Can KBC take this lump sum from me as I will be retired before I pay off the first part of the mortgage? How am I supposed to pay off the ware-housed portion when I am retired? (It will be 150,000). If I die will my mortgage life insurance pay out on the whole mortgage so that my children will be looked after?
If I am still alive after my mortgage life insurance is out and I die having one half of the mortgage paid will this leave my children with the banked 150,00 if they want to remain in the family home? I doubt i will be able to take out another mortgage life insurance policy to cover all of these eventualities without it costing a fortune.
Have I any leverage with the bank to try and get some of the arrears or balance to be written off as they are now only coming after me for payment.
I fully appreciate I got myself into this mess but the mortgage was based on both of our incomes at the time whereas now it is just mine. I do not think I will be able to sustain the monthly amount they want on the split mortgage - anything other than groceries, esb and running the car are being deemed as extras so if the car packs it in or if a door falls off the house (it wouldnt be the first time!) I'm screwed!
The amount they are looking for is on the same level as rents in my area so I'm better off in the long run trying to sort this out once and for all.
Does the fact that my ex was never on the deeds to start with help with the overall picture or as I said am I clutching at straws to try to come to an arrangement that I can sustain and not have to worry about when I am 70!?
Thanks for any info
noodle007 is online now

mariaalice

Will your children not be old enough to look after themselves by the time you retire?

Will the negative equity not be resolved by the time you retire.

Are they expecting you to sell the house when you retired pay off the warehoused part of the lone.

noodle007

Sorry MariaAlice,

Just reading your comment again, yes I will have to pay off the warehoused part of the loan when I am finished off the unwarehoused part. And this is what I am worrying about, and boy will I worry about it for the next thirty odd years!! I read somewhere that this is usually a good option for banks as they know a public sector employee will have a lump sum at the end of their working life. Other than the lump sum I will have nothing more than my last weeks wage at that stage, and if I did manage to take a small life insurance policy separate to the mortgage life insurance policy can they take this also and if they do take my lump sum it will still fall seriously short. And my mortgage insurance policy will be out before I try to pay off the warehoused portion so if I die they get everything....

It is terrible to think that my best case scenario is to die before my mortgage life insurance policy runs out!

Oh hindsight, where have you been all my life!

JustAThought

Hmmm - sorry for your troubles It sounds at least like they are facilitating you - have you talked to MAbS who might have the expertise to answer you? After that there is New Beginnings on Fitzwilliam Square in Dublin who are amazing & well worth talking to. They specialise in helping his kind of problem & have a very low cost system in place ( just to avoid todal timewasters).

At least you will still have a guaranteed pension - or are they factoring this too?

How did they bank allow him to be factored in but not on the deeds - is that a mixed blessing for you or is there an advantage financially for you? were you mis-sold or not adequetely warned about the consequences of him Not being on the deeds?

Can you chase him through the courts fir child support which if nothing might help offset the debt - the internet has made the world a cery small place And the bank has much more resources than you to chase him & recover the money.

Talk to New Beginnings first - they are fantastic.

Have you considered losing the house, letting them repissess it, declaring yourself bankrupt, and thereby saving your lump sum & pension? The government will rent you a place for free for the rest of your life - no more debt or prisecution or negative equity worries & no comeback from your ex on a percentage iwnership in 20 years time..

noodle007

JustAThought wrote: »

Hmmm - sorry for your troubles It sounds at least like they are facilitating you - have you talked to MAbS who might have the expertise to answer you? After that there is New Beginnings on Fitzwilliam Square in Dublin who are amazing & well worth talking to. They specialise in helping his kind of problem & have a very low cost system in place ( just to avoid todal timewasters).

At least you will still have a guaranteed pension - or are they factoring this too?

How did they bank allow him to be factored in but not on the deeds - is that a mixed blessing for you or is there an advantage financially for you? were you mis-sold or not adequetely warned about the consequences of him Not being on the deeds?

Can you chase him through the courts fir child support which if nothing might help offset the debt - the internet has made the world a cery small place And the bank has much more resources than you to chase him & recover the money.

Talk to New Beginnings first - they are fantastic.

Have you considered losing the house, letting them repissess it, declaring yourself bankrupt, and thereby saving your lump sum & pension? The government will rent you a place for free for the rest of your life - no more debt or prisecution or negative equity worries & no comeback from your ex on a percentage iwnership in 20 years time..

Hi Justathought,

Reading your comment has put things in perspective for me, so thank you so much. In my head I know repossession is the best way forward but I have been worrying as only a gob****e Irish mammy can and not as an individual whose way out of their depth!

I'm happy to keep himself off of the deeds, it wasn't a very amicable union so I was jumping at the chance to try and sort this myself without him.

I will look up New Beginnings now and take it from there.

Thanks again, it is really appreciated.

Lumen

How much is the house worth now? Where is it (approximately)?

Is interest payable on the warehoused portion?

I would not jump to the conclusion that repo is the best way forward.

edit: also, it sounds like your partner's name was on the mortgage. Is that true? What were the terms?

This is possibly too complex to untangle on an internet forum.