Estranged husband handing keys to house back to bank

Clairobelle

Hi Everyone

My marriage ended at the end of 07, my husband had been having an affair. He moved out and since then has been paying mortgage. I work 20 hrs week and have wtc and ctc but this has not been enough to cover all the bills and consequent debts which have mounted up since. Ive now got to a stage where i have to take out a debt management plan in order to take control back of my finances.

However, i have told my ex that i either have to move out of the home (large detached 4 bed) as i cannot afford to live her. some weeks i have to borrow cash off my mum in order to feed my 2 dd's.

His reply has been that he will hand the keys back to the bank as he cant afford to give me any to support out girls. Which is fair enough, the house is on the market but theres no way it will sell.

My questions are:
1. Will the bank give me time to find another place to live?
2. As he has paid the mortgage and he now cannot (even though it is a joint mortgage) is there any way i can protect my name so that in future years (not yet obviously, not got a bean to my name!) i might be able to get a mortgage?

Many thank
Claire xxx

morg_monster

Hi Clairobelle
You might be better off reposting this in the housing board. I hope you get some useful replies, there are some very knowledgeable people there.

silvercar

"handing the keys back" is a short hand way of saying voluntary repossession. That means that you (Both if its a joint mortgage) hand the property to the lender. You or he cannot "hand the keys back" and remain in the property.

Whether it is reasonable or not for him not to give you any financial support is a matter between you and him, and I guess the CSA.

If it is impossible for you to afford the home based on your income, benefits and maintenance then it makes sense for you to move.

If you both fall behind with the mortgage, eventually the lender will repossess. At this point, and it can be months before the lender goes to court and gets possession, you would have to leave the home.

Difference between the lender repossessing and you both voluntarily giving up the home is little in terms of your credit record. It probably saves you money in terms of what you eventually owe the lender.

In repossession, voluntary or not, the lender sells the property for what they can get for a quick sale. If this isn't enough to clear the mortgage, arrears, charges and sale costs, the lender will pursue you both for the shortfall.

The house is on the market but not selling, suggests the price is too high. If you don't reduce the price you won't be able to sell.

peachyprice

If your OH stops paying the mortgage you'll have much longer to find somewhere else to live than if he goes for voluntary repossession.

wannabe_sybil

Regrettably I believe you will be both equally responsible for any shortfall in the amount the repossessed house fetches. Thus, mortgage is £130k, house sells at auction for £80k, you are both equally liable for the £50k loss PLUS any fees, costs, charges and interest and it will stay on your record as well as your ex husband's for 12 years.

Sorry.

Handing the keys back to the lender isn't possible, you can't just walk in and give the keys in. You have to stop paying the mortgage (accruing charges and interest), the lender will then go to court (fees) and then get the bailiffs out to evict (more fees).

If there is a lot of equity then I suggest you find somewhere as soon as possible and lower the price, with vacant possession it will hopefully sell quickly.

Really sorry not to be cheerful.

mookiandco

Another route is to start divorce proceedings and apply for maintenance pending suit (ie maintenance from your husband whilst divorce and finance negotiations are ongoing). An Order can also be obtained that he must pay the mortgage (although not always enforceable). Usually if your solicitors write to your mortgage provider and explain that there are pending divorce and financial proceedings they will withold any action during that time. Its certainly worth a shot.

Clairobelle

Thank you so much for your advice.

There is no equity in the house as it had been remortgaged. Thats why he is unwilling to drop the price unfortunately. I shall have to speak to my solicitor tomorrow, no doubt she'll be rubbing her hands together

Thanks again
Claire

peachyprice

wannabe_sybil wrote: »

Sorry.

Handing the keys back to the lender isn't possible, you can't just walk in and give the keys in.

This is indeed possible, it's voluntary repossession, you can send the keys back, the lender will ask you to sign a deed of acknowledgement (which say's you'll be liable for the shortfall and costs) which you may not want to sign, the lender goes to court for possession, if the house is empty aleady it's granted immediately, if you're still living there you're given time to move out, usually 28 days.

wannabe_sybil

peachyprice wrote: »

This is indeed possible, it's voluntary repossession, you can send the keys back, the lender will ask you to sign a deed of acknowledgement (which say's you'll be liable for the shortfall and costs) which you may not want to sign, the lender goes to court for possession, if the house is empty aleady it's granted immediately, if you're still living there you're given time to move out, usually 28 days.

I have never heard of anything like this - but I do hope for the OP's sake that you are right. The procedure seems very similar to what I had seen, however, just I have never come across the acknowledgement bit, and the awful fall out of a repossession is unfortunately the same. It is just speeding up the process, I suppose. Sometimes it is a blessing in disguise to lose a house, to take a new look at life and if there is no shortfall then it could be a lot worse.

I do hope it works out for the OP.

silvercar

peachyprice wrote: »

This is indeed possible, it's voluntary repossession, you can send the keys back, the lender will ask you to sign a deed of acknowledgement (which say's you'll be liable for the shortfall and costs) which you may not want to sign, the lender goes to court for possession, if the house is empty aleady it's granted immediately, if you're still living there you're given time to move out, usually 28 days.

I agree, though the lender doesn't have to go to court if you agree to repossession voluntarily.

If you are in negative equity, you will both be jointly liable for the shortfall and the lender will chase wither or both of you.

If you are definitely going to be repossessed or hand the keys back, some would suggest you stop paying the mortgage and start saving a rental deposit and advance rent. It is easier to find a rental property with no recent repossession on your credit rating.

peachyprice

silvercar wrote: »

I agree, though the lender doesn't have to go to court if you agree to repossession voluntarily.

If you are in negative equity, you will both be jointly liable for the shortfall and the lender will chase wither or both of you.

If you are definitely going to be repossessed or hand the keys back, some would suggest you stop paying the mortgage and start saving a rental deposit and advance rent. It is easier to find a rental property with no recent repossession on your credit rating.

And they have 12 years to chase you for mortgage shortfalls, rather than the usual 6