My ex is going Bankrupt, what happens to the house?

nervousmother

I think you both need to get some professional advice, check tigers signiture.

If your ex went BR yes you would be left to deal with the neg equity on your own, but you could come to some arrangement with them either paying it off via a loan or if your able to offer a lump sum as full and final settlement.

If you decide on renting it, you have to think about who will pay the mortgage while the house is un-occupied you wont always have a tenant in it, and if your situation is that dire you may end up with alot of stress during vacant periods. You also have to pay for legal things like a Gas safety certificate, energy performance certificate buildings insurance, electric certificate (if it will be house of multiple occupancy) so as you can see renting out is not always a sensible option.
I would contact a debt advisor.

djwmcnae82

Thanks Nervous.
She claims to have spoken with the CAB about this and they have advised her to go BR.
The thing with renting is at least we could give it a shot. The mort company will give us 2 months off.. so we can try and get some one in during that time... if we fail she goes BR and gets waht she wants. If we get some one in, thats 6 months confirmed rent whcih would cover the mortgage, any profit made would be kept incase after the 6 months the tenant moves out and we fail to get another one, we would have at least 2-3 worth of mortgage payments. I know there are other fee's as well, but i have looked into this and it would only be about £300 which i would have to borrow.

If i get a massive NEG EQ bill, there is no way i can pay it, would not get accepted for a loan so would force me to go BR as well, only prob is I owe my mother £15,000 from when she bailed me out as a nipper, so I would still have that to pay even though I was BR!!!!

nervousmother

The mortgage company would probably turn the negative equity into a loan if you asked them to, if not then they have up to 12 years to recover the shortfall from you, chances are they wont come after you for a few years (they will be giving you chance to get back on your feet) but it would be possible at that point to say 'look i owe you 9k but can only afford to give you 5' they may well accept it.

Another thing with renting: yes tenants signs 6 months contract, they then loose their job and stop paying the rent, the only way to get them out is through court that will cost you money. I work in a rental agency and believe me have seen nearly every problem possible..