House Repossession maybe bankruptcy?

Gareth83

Debt_Free_Chick wrote: »

I can understand how you feel about a property that your partner once shared with her ex (been there, done that!) but - in the nicest possible way - you need to "get over yourself" in that respect. It's just bricks and mortar after all and it need not be a long-term home for you both if you don't want it to be.

Are you for real? I haven't said I have a problem with moving in to the house but as we have a kid on the way I have a responsibility to my family. And I will not risk anything bad happening to the house or to them, you hear all the time of jealous ex's causing problems and we could both do with a fresh start without any possible problems.

The alternative - repossession and possible bankruptcy - will cause an equally huge strain on your relationship. And for the next 6-12 years as well. Firstly, her credit record will be shot and this will impact you if you have any joint credit; that includes a joint bank account with an overdraft facility.

Secondly, the lender can continue to chase for the shortfall for up to 12 years after repossession.

These are the types of responses I am after not the moral highground

The financial implications that result from repossession and bankruptcy are very, very real; very far reaching; and will last for a considerable period of time.

The implications of you moving in the property are simply "your state of mind" and can be overcome if you simply choose to look at things differently.

I have looked at it differently, and it is not practical. He will simply not sign it over to me

Detach her previous emotional/physical relationship from the property. The house is no indication of the size of her ex's !!!!!! or his sexual prowess (sorry - but this is all too frequently behind a man's feelings in this situation, no matter how bizarre it may seem). In fact, it probably represents all the reasons why their relationship failed. See the house as (a) somewhere to live (b) a way of saving money, assuming that your joint outgoings on rent and mortgage will be less than they currently are and (c) an opportunity to buy your first home together. If you buy it with her, her ex will then have absolutely no say in anything to do with the property and then - I assume - the final string of attachment between them will be completely severed.

Needs must I'm afraid.

She needs you to be practical and supportive and to provide possible solutions - not lumber her with financial and emotional distress that goes with repossession and bankruptcy. Hasn't she got enough financial problems without those too? And ..... a baby due in July??????

Step up the mark and be a man - better still, be a supportive and understanding partner and not a green-eyed monster

How am I being jealous !!!!!!? I'm trying to deal with the problem. I have advised her against letting it get repossessed but I am certainly not moving in there and taking on his debts as when we come to sell it will be us who make the loss. So it'd be the same situation but further down the line.

Gareth83

Pepzofio wrote: »

From your posts on other boards, I see that he is currently living at the property with a mate, but does not pay the mortgage direct as he has poor credit & doesn't have a bank account... Does this mean the mortgage is soley in your OH's name? If so, why is she letting him stay there?!

I still think moving into the property yourselves is a sensible idea, as (a) you wouldn't be financially tied to the property (b) as long as everything remains in her name it won't affect your credit (c) it sounds like the ex is unlikely to fulfill his financial obligations whatever happens (d) if you live in a small community then you're going to have the same problems wherever you live - unless you're planning to leave the area?

Assumptions, assumptions!! The house is in joint names, if it was just hers he would have been long gone obviously.

Read the OP

The problem that we have is that she has a house with her ex partner (obviously she doesn't live there) that has been up for sale for 14mths.

If you can get a mortgage yourself and are happy to have all bills in your own name, then her going bankrupt will not necessarily affect your credit rating - although bear in mind you can't even get a joint current account together without being linked on your credit profiles. But as other posters have said, she needs to get expert advice from a debt advice charity before going down this route.

so therefore 'a' is ruled out because in order for him to get off the mortgage would require me taking over therefore I would be financially tied to the house

Pepzofio

Gareth83 wrote: »

I don't want anything to do with the house out of principle, it was something they bought and decorated together and I know it would cause problems in the future.

I wouldn't buy the house anyway as I'm looking for something that 'we' can do up together

Err... I think this might be what gave DFC (& me!) the impression that you didn't want to move into the house!

He doesn't have to sign it over to you in order for you to move in, just as your OH didn't sign it over to his friend when they moved it. You might have trouble getting him to leave, but if he has any sense, he would see that it would be better for him to allow you & your OH to move into 'his' house & pay the mortgage, rather than allow it to get repossessed and face the residual debt & credit problems that would inevitably follow.

I DID read your OP and wasn't assuming anything, but your subsequent posts state that he pays your OH money for the mortgage as he has poor credit and no bank account - therefore I was asking you to clarify the position with the mortgage... And I don't think it's 'obvious' that he would be long gone otherwise - after all, your OH is currently paying a mortgage for her ex to live in their house with little or no contribution from him!!

Debt_Free_Chick

Gareth83 wrote: »

How am I being jealous !!!!!!? I'm trying to deal with the problem. I have advised her against letting it get repossessed but I am certainly not moving in there and taking on his debts as when we come to sell it will be us who make the loss.

Unless you wait for the value to increase to one that covers the o/s mortgage, which would reduce if you were making payments on a repayment mortgage

Given time, the loss would disappear.

Debt_Free_Chick

Gareth83 wrote: »

so therefore 'a' is ruled out because in order for him to get off the mortgage would require me taking over therefore I would be financially tied to the house

Not necessarily - you would effectively rent his share, but pay money to your partner, which she uses to pay the mortgage.

However, you are contemplating being financially tied to "a house" in any event as you say you want to buy, so why not this one?

It needn't be forever and in the short term it makes most financial sense.

poppysarah

You'd want to move in and buy him out fairly so he's not been done. You'd need several valuations maybe - and if it's in negative equity he has to be made to understand what that means for him too.

Yes she might have some debt but it's better than not having the debt AND not having the house.

You need to do things really fairly. But letting him take advantage is seriously insanely wrong.

Is the property empty?

Gareth83

no, he lives there and his mate rents her half so to speak.

I am not moving there so I'm afraid that is completely out of the question to be honest.

DebtFreeChick, it doesn't make sense in the short term because if I am renting his share it is paying off his mortgage not mine, he will not agree to it anyway period.

And in the longer term, say 10mths when the £6000 exit fees are dropped it will be myself and my girlfriend facing the loss. The last survey came back with roof problems, damp, excess radon (not sure how they measured that as it's measured over a period of 3mths) amongst various other problems so unless we got the work done or dropped the price to reflect the costs will be on us.

Whereas meanwhile he probably wont pay anything to her family and will walk away debt free

poppysarah

If he's not paying her the full whack then he needs to be got out. Sometimes a partner in a place makes it harder to sell because they don't want to.

Maybe it'd be best to stop paying the mortgage. Yes she's be in trouble but so would he. It might focus his mind.

smartpicture

I don't understand your thinking re repossession. If you allow this to happen, the bank will sell it drastically below the asking price to get rid of it quickly, then your gf and her ex will each be chased for the remaining debt, which is likely to be huge. Surely it would be better to sell it yourselves for significantly below the asking price, even if that means making a loss. Yes, your gf & her ex would lose a significant chunk of money, but you can be absolutely certain that it would be a lot less than if you let the bank do it for you (and include their own charges into the equation).

If, as you've repeatedly said, your aim is to cut the ties with this house and move on, then I think you need to be prepared to make a loss - but in a way in which you are more in control than via repossession.

Gareth83

We have spoken with GE money and they have a scheme in place which means they will void the 6% early termination fee, however this is only guaranteed for the next 28days but will likely to be extended.

This will mean there is a balance of £87,411.37 (£86,164.89 + £823.80 arrears + £422.68 fees & interest).

This will be saving her £5244.68 (£87,411 x 6%) which is actually less than the £6000 she thought the exit fees were.

With her secured loan being £5157.00 the lowest she could realistically accept is £92,568.37

If she were to sell it by herself but use a solicitor she could obviously accept way less than the £102,000 she initially calculated.

a) How much roughly to use a solicitor for selling? Do they work on a no sale/no fee basis?

b) If they were to sell it themselves, with one of the numerous house selling websites available how long do they keep it on the market for?

c) Is it just the HIP pack she will need to obtain prior to selling? I guess it's a case of pick the cheapest...?

d) If the house were to sell for a minimum of £93,000 is it then just a case of getting an agreement drawn up with her ex to repay his debt to her family?