negative equity theft ?

bigjluk

i have split from my partner 12 months ago,we shared a house together which is mortgaged,i have left 1 year ago and she continues to live ther with her 2 kids,we are both still on the mortgage though of which she pays 75%.she owes 10 grand to virgin which was accrued before the split,she cant keep up with repayments ,even though she offers to repay but not what they want and now virgin are saying they will take out the 10 grand out of the house value,even though it is in negative equity,can this be done even though the house is 50/50 split.

Wickedkitten

Is this a credit card or a loan?

bigjluk

credit card

silvercar

Think they would need to go to court unless you have a virgin mortgage and the small print allows the mortgage charge to be used as security for other debts.

In any case, they would be a second charge on the property. With negative equity they would not see a penny, so it would not be in their interests to force a sale.

pinkshoes

Could you not pay her £15k to have your name taken off the mortgage and deeds?

That way she can pay her debt and the mortgage for a few months whilst working out what she's going to do.

Debt_Free_Chick

bigjluk wrote: »

virgin are saying they will take out the 10 grand out of the house value,even though it is in negative equity,can this be done even though the house is 50/50 split.

Well, kind of ....

As already indicated, Virgin will need to go to Court (get a CCJ first, then a Charging Order), but in theory they can place a charging order on the property. However, this does nothing other than to give them the right to £10k when the property is sold - they can't get the money out beforehand.

It will be a second charge too, so Virgin will only get a stab at any equity left, after the main mortgage is paid off.

And - of course - anything that Virgin get will come out of your ex-partner's share of any equity, not yours and not 50/50