Joint mortgage with ex who is now bankrupt

darreny_2

Hi

I was wondering if you could shed any light on my situation?

I have a joint mortgage with my EX GF, she no longer lives in the house and i pay the whole mortgage. Last month she was declared Bankrupt! I cannot seem to get any answers from the OR regarding the house, the house is currently in negative equity.

What will happen next? Will they put a charge on the house for any future profit? Will she still be a named joint partner on the mortgage or will her name be removed? If her name isnt removed will i still have to get her to sign any documentation in the future if the house is sold?

The OR has "Mentioned" that IF the house is in negative equity i could buy her share for a £1 plus legal fee's is this the case?

Sorry for all the questions but i don't know how long this will all take or what to do with the house and mortgage!!

Thankyou in anticipation

Robert_Sterling_3

Who or what is the OR?

getmore4less

official receiver.

CLAPTON

The OR now 'owns' her share so you need to make an offer for her share of the house... £1 would be appropriate if the house has no equity.

silvercar

The OR has "Mentioned" that IF the house is in negative equity i could buy her share for a £1 plus legal fee's is this the case?

Do this. It gets the ex girlfriend and the Official receiver out of your hair for good.

If you don't do this you run the risk of one or other turning up in 4 years time, revaluing your property and demanding some of any equity.

You should also tell your lender. If they refuse to remove your ex's name from the mortgage that won't prevent you buying the OR's beneficial interest in the property; it will just be an anomoly on the records.

Trollfever

Information from the OR can be found here:

http://www.insolvency.gov.uk/guidanceleaflets/guides.htm#1

getmore4less

silvercar wrote: »

Do this. It gets the ex girlfriend and the Official receiver out of your hair for good.

If you don't do this you run the risk of one or other turning up in 4 years time, revaluing your property and demanding some of any equity.

You should also tell your lender. If they refuse to remove your ex's name from the mortgage that won't prevent you buying the OR's beneficial interest in the property; it will just be an anomoly on the records.

Are you sure, I don't think this is right.

In many cases a bankrupts still have a house and a mortgage since this is neutral, it is only the equity you buy out from the OR not the mortgaged part of the house.

It will be more than an anomaly if she stays on the mortgage you will still have an financial link with a bankrupt.

You would also need her agreement to sell.

I would make sure she is off the mortgage, if you sell the mortgage company would only get 1/2 the shortfall since she is bankrupt so they might be happy for you to take this on.

silvercar

In many cases a bankrupts still have a house and a mortgage since this is neutral, it is only the equity you buy out from the OR not the mortgaged part of the house.

There is no way an OR is going to agree to mortgage payments being made for a property the bankrupt no longer lives in. Yes, an OR would accept reasonable mortgage payments as part of a budget, provided they were not significantly higher than rent would be, but only for a property that is the bankrupts home.

I would make sure she is off the mortgage, if you sell the mortgage company would only get 1/2 the shortfall since she is bankrupt so they might be happy for you to take this on.

This is not right. You can't sell if there is a shortfall, without making up the shortfall from elsewhere. On a jointly owned property, both parties are jointly liable for all the debt, so the lender doesn't have to write off any of the debt. For all the negative equity to be written off would require both parties to go bankrupt.

getmore4less

silvercar wrote: »

There is no way an OR is going to agree to mortgage payments being made for a property the bankrupt no longer lives in. Yes, an OR would accept reasonable mortgage payments as part of a budget, provided they were not significantly higher than rent would be, but only for a property that is the bankrupts home

This is not right. You can't sell if there is a shortfall, without making up the shortfall from elsewhere. On a jointly owned property, both parties are jointly liable for all the debt, so the lender doesn't have to write off any of the debt. For all the negative equity to be written off would require both parties to go bankrupt.

right forgot that part, does that not still leave a problem, financial link and permision to sell if she does not come off the loan though

silvercar

Financial link is a problem, but could be got around by putting a note on credit reference files.

I don't think that you would need someones permission to sell if you 100% owned the property but had a joint mortgage. A lender couldn't refuse to accept money given to it and if it clears the outstanding balance the mortgage is cleared.

Property owning and bankruptcy is a difficult topic and OP would be advised to take advice from the ORs office.