Negative Equity and Break Up...Where do I stand?

[M355Y]

Hi there,

I have looked around and have been told different things from people and just want to know where I stand.

Me and my ex boyfriend were together for 3 years rented two properties then in May/June this year we bought a property and unfortunately we have grown to become just good friends so I broke it off just over a month ago.

He originally wanted me to stay living in the spare room for the next 3-5 years until the house prices went back up but I just cannot do that because it is just plain uncomfortable and I feel we cannot move on in our lives.

Our house is in negative equity and he has told me that I am not allowed anything out of the house due to him taking the 'debt' on therefore I have to move out with nothing. He put 6k into the property and I put 4k when we originally bought it. I was going to give him 1k when I had the money when we were together and now he is not willing to give me my 4k back and only the other day asked me for the 1k I owed him back which has made me angry because he has now contradicted what he originally said.

My friends say no matter whether the house is in equity or negative equity I am owed money but other people say I am owed nothing because it is in negative equity.

I was told that I could have an agreement written up so that when he gets
4k back in the equity of the property I would get it back but he originally said yes then spoke to his mother and has now said no and that I should be glad that he is willing to take on all of the houses debt. THING IS....he will make money on the property in the future.

I even said rent my half out so that I stay on the mortgage and he has said no so I have come to my wits end!

FYI...I will be coming off of the mortgage in March and his brother will be going on.

All I want to know is am I owed anything or do I just need to walk away?

HELP ME PLEASE!!!

 

[M355Y]

Anybody have any views or ideas??

 

[Gail_in_Georgia]

There is absolutely no guarantee that your boyfriend will MAKE money in the future when/if he decides to sell his place. It is quite likely he will continue to lose money on this investment for at lease several years down the road..

http://money.cnn.com/2008/12/23/real_estate/home_sales_November/index.htm

As such, when you purchase a house, you take a risk that it will increase in value and, of course, for a number of years this was the standard.

No longer (I recently learned when attempting to get a HEL on my own place that has been fully paid off for years the resale value had decreased by $40,000 in the past 90 days).

Because your boyfriend is aware of the downturn of the housing market, the fact that this house is in negative equity and because you made the decision to end this relationship, you should likely be satisfied that your boyfriends brother is assuming your debt as opposed to you having to pay a mortgage on a house that is worth far less than what you two originally took the mortgage out on.

Gail