Mortgage and relationship breakdown

plane_boy2000

Trying to get some pratical help here for my BIL.

On Monday his wife anounced there marriage was over - no warning or anything and he is devastated. I am hoping that someone here can offer some financial advice regarding his house / mortgage.

They bought last year with a sub prime mortgage, but the house is now worth 20 - 30K less. They have no equity as the deposit was lent by both sets of in laws. Unless he has missunderstood he also thinks that he has a early repayment charge of 22K (!)

At the moment she is staying in the house, but BIL has no disposable income to house himself so this cant really go on much longer.

What (if any) options does he have? I do recall reading that in some cases the sub prime lenders were waiving exit fees to reduce their exposure - does this really happen (it may enable him to off load the house with a small loss) Would the lender negotiate on exit fees given the likely outcome is reposession if they dont take action pretty quickly?

herbiesjp

Who is the lender?

plane_boy2000

Will try and find out although not sure if he will know. When it comes to finances hes not very good and his paprents "took care" of everything for him. The only thing that I have established is that is was a subprime loan.

plane_boy2000

Cant remember name of mortgage co, but he has called them and explained situation. They were pretty disinterested - told him there was nothing they could do to help, and when he had missed 3 payments they would start reposession proceedings.
He has spoken to CAB who have told him the best thing to do is stop paying now and declare himself bankrupt. Dosent appear a very pragamatic approach, but not sure he has much choice.