Handing back the keys to the lender?

nicks5359

Hi,

I have a house that i have a joint mortgage with my ex partner, since the breakdown in our relationship the house has been vacant and for sale.My ex has now lost her job and as such is unable to contribute to the mortgage any more. I know techinically as it is a joint mortgage i am lible to make the full payment, however i am not in a a financial position to do that even for 1 month. I have spoken to the lender who have offred to take half payment with the other half going on arreas. Arrears is a slippery slope and i do not want to get into that. I had been advised i may be able to ask the mortgage company to reposess the house and as there is a little equity still left in the house i would be classed as a 'good leaver' which would have a less detrimental effect on my future credit rating.

Please cold someone advise where i would stand on this?

the house is on the market at £120k, with an outstanding mortgage of £114.5k after we bought the house a year ago for £130k.

i dont want anyhting out of it just to be able to gt on with my life.

payless

I had been advised i may be able to ask the mortgage company to reposess the house and as there is a little equity still left in the house i would be classed as a 'good leaver' which would have a less detrimental effect on my future credit rating.

by whom!......

Mutton_Geoff

Plenty of posts here, "handing back the keys" might be the easy option in the USA but not in this country.

lisyloo

I don't think you've had correct information.
The mortgae company will sell the house, but will want their costs covered.
Any house cleaning, grass cutting, building insurance etc. will be arrangeed professionally and paid for at professional rates.
Any shortfall will need to be covered by you (they have 12 years to pursue you).

So basically it's cheaper to sell the house yourself and cut the grass at your rates (for nothing in your spare time).
I know it's winter so perhaps the grass cutting isn't a good example, but anything that eneeds paying for (like buidings insurance) will be added onto your tab and they won't spend hours shopping around like you do and the person arranging it will need to paid.

Does your partner not have any savings or insurance to cover the current situation?

Could you rent it out completely?
Get lodgers?
Get a loan and get agreement with the partner?
Drop the price?

Sorry, I'm not being mean, but you can't walk away without consequences.
There are procedure like bankruptcy but they do have consequences and need to be carefully considered.

ad9898_3

lisyloo, is correct OP

nicks5359

Thank you for your replies, it does seem ive been strung a yarn.

One of my primary objectives is to not have to deal with my ex partner any more, if we were to have the house repossessed and subsequently go bankrupt. Would the debt be split between the two of us for IVA and other purposes or would it still be a ‘joint debt’. I will have to investigate bankruptcy further but, she has in the past expressed a desire to emigrate if she was to do this would I then be liable for her half of the debt after bankruptcy?

maninthestreet

The mortgage lender can pursue both of you for the debt, or either of you. If your ex-partner emigrates to another country, who do you think you lender will pursue for the debt???

silvercar

After bankruptcy the debt would be written off, but only if you both went bankrupt and had given up the house. A bit drastic. WHy not just reduce the price and sell quickly? If there is anything extra to pay, it would be easier for the two of you to borrow a small amount than have a bankruptcy hanging over you.

nicks5359

the problem is now my ex has lost her job she is in no position to contribute to the mortgage, refuses to sign anything to get the payments reduced, and i cant change anything without two signatures. on top of that i am in no position to service the whole mortgage even for 1 month.
even if we reducedit by 10k leaving a shortfall of 5 k + fees i doubt it would sell, nothing is moving at all.

renting it is an option but again finding a tennant before the mortgage payment is easier said than done.

the mortgage company have offered to take half payment with the other going on arreas, but like i said she just wont do anything. My hands are tied.

nicks5359

It seems my fate is sealed:

My ex refuses to agree to any agreement I can make with the mortgage company to allow me to fund it on my own until it is sold, I can not afford to pay the payment in full but without her agreeing to change the payments my hands are tied. The house will be in arrears from next month, will then be re-possessed 3 months after. Probably sold at a huge shortfall, my ex will then declare herself bankrupt. Leaving me with a huge debt, so that I intern have to go bankrupt. And I can’t do a thing about it. I have exhausted every option: CAB, solicitors but if she wont allow me to take the half payment the mortgage people have offered there is nothing I can do about it.

It seems silly that this could all be averted if she would just agree, just to clarify I am not asking her to find money she doesn’t have, just allow me to make the changes needed to stop this happening.

The length to which some people will go to for revenge is staggering….

Baz_2

nicks5359 wrote: »

It seems my fate is sealed:

My ex refuses to agree to any agreement I can make with the mortgage company to allow me to fund it on my own until it is sold, I can not afford to pay the payment in full but without her agreeing to change the payments my hands are tied. The house will be in arrears from next month, will then be re-possessed 3 months after. Probably sold at a huge shortfall, my ex will then declare herself bankrupt. Leaving me with a huge debt, so that I intern have to go bankrupt. And I can’t do a thing about it. I have exhausted every option: CAB, solicitors but if she wont allow me to take the half payment the mortgage people have offered there is nothing I can do about it.

It seems silly that this could all be averted if she would just agree, just to clarify I am not asking her to find money she doesn’t have, just allow me to make the changes needed to stop this happening.

The length to which some people will go to for revenge is staggering….

Gosh.

I take it from the word revenge you must have been a naughty boy.

Does she understand what it will mean to her to go bankrupt?

What would it mean to your life? Some people can be quite un-effected by it and it can be the best way out, but it can also be the last resort to. Depends in your aspirations, career path, etc.

The lender won't make you bankrupt as it makes no sense for them to do so.