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Repossesion confusion - Advice please

Hi - am really confused about this. Don't know if this is right part of forum to ask about this but here goes. Since Jan 07 have been paying mortg on property bought with ex husband, he pays nothing and is not working and no fixed abode.

I don't live in house and it's rented out most of the time, though rent doesn't cover huge mortg (no work in area for me) have tried selling it and would have been able to clear debt but with no profit, however that fell through before crash. Since then silly offers only for less than value (house worth £210-230k) offers of £180k.
House off the market until I can get correct market value to cover the debt to C&G, if it goes to auction or I sell it cheap c&g won't release deeds with shortfall and even though I have capital I can't cover that amount of shortfall and plus the debt is a JOINT one. Can't buy ex out as don't earn enough.

My solicitor says he can force through sale if/when I get a buyer. BUT!
Questions----
What are my options if I can't afford it in the future and I can't sell it?

Should I speak to mort company now and tell them what's happening or will they withdraw loan as it's only me paying and this is a big! mortg?

If I did return keys would they do a deal with me so I don't go on repossesion register and offered them a lump sum to cover some of the debt owing?

Do C&G do deals with people like me who have been left with the crap alone?

Would he be responsible for any of the debt when he is nfa?

Does repossession register mean you can no longer rent except privately, would I get turned down by letting agents etc??

Can I get the mort/deeds in my name only any other way???

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Sorry it's so long winded and if I have posted in wrong section:eek::eek:
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Comments

  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    So this is a joint mortgage?

    If so then your ex whether he likes it or not is jointly and severally liable for the mortgage debt.

    Do you have consent to let the property out from C&G?

    Is it an option to continue to rent the property out until the market picks up?

    C&G will only take your ex off of the mortgage if your income will cover the debt and from what you have said it won't.

    If you hand the keys back in it is effectively the same as repossession but obviously without the court costs, so it would still be a black mark against you and your ex.

    If the property is repossessed and there is a shortfall, then yes he is jointly liable for the debt.

    You can only get the mortgage/deeds in your name if your income is sufficient in C&G eyes.

    C&G won't withdraw the loan, if you can't make the mortgage payments then they are required to assist you if they can, they can make payment arrangements etc, but as the mortgage is joint then they will pursue the ex for monies as well. Any arrears/payment arrangements will show up on your credit file.

    As above can you continue to let the property out until the market picks up? How much negative equity are we talking about?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SMEIGALS1
    SMEIGALS1 Posts: 17 Forumite
    Thanks for coming back to me, yes C&G are aware of it being rental property. No my income won't cover the full mortgage which is about £232k. Nearly sold house last year for £230k but fell through at last minute. Am desperately trying to hold on until market picks up but gets scary when tennants move or there are gaps. Upkeep all down to me too! I think neg equity is really what people are offering now! House is worth LTV however people are trying it on and market is slow and flooded.
    I was told if it was returned and they can't find him I will be liable for full debt as I have capital and on elec. register etc? If I use my capital to reduce the mortgage I am effectively paying for his debt too and losing my deposit for a new house for me, I rent at the moment and refuse to buy until I have got rid of this big debt? Hence why I am concerned re renting and bad credit showing.
    Is there anything I haven't thought of? Would a court get c&g to put it into my name or write off debt completely?
    I think that's wishful thinking?
  • beecher
    beecher Posts: 2,497 Forumite
    Problem is that a house is only worth what someone will pay for it - sounds like it is worth less than the outstanding mortgage, and that may be something you have to accept.

    You're not going to get the debt written off, and your only options are to sell and make up the difference with your savings, or to hold on for however many years it takes for the value to increase enough to pay off the mortgage.
  • SMEIGALS1
    SMEIGALS1 Posts: 17 Forumite
    Thanks, so the building societies aren't accepting a sort of lump sum payment to write off these mortgage debts then? I am sure my solicitor said that there are some who will 'do a deal?' Do you know if they are helping people at all?
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    As beecher says a house at the moment is only worth what anyone is willing to pay for it and it is more of a buyers market.

    A court cannot make C&G put the property in your name and I can't think why you would want them too? As it legally would all be down to you. So I can't see where this angle is coming from?

    C&G may well have said that the remaining debt would all be down to you if they can't find your ex etc, but do you know where he is? They will chase both as long as they know where both are.

    You may not want to sell and make the difference from what you have saved but what you have to ask yourself is what are the best long term options for you?

    Get rid of the property for what you can make for it and settle outstanding with C&G from your deposit monies, and get rid of the millstone once and for all with credit file intact.

    Continue to let and make up any rental shortfall and when tenants absent, hope to sell but no telling how long this could continue, so carry on and hope for the best.

    Pursue ex and try to get some sort of financial settlement out of him.

    If property keys are handed back in or the property is ultimately repossessed you may be rid of your ex and the propert etc but you will not obtain another mortgage and so your deposit will mean nothing.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    SMEIGALS1 wrote: »
    Thanks, so the building societies aren't accepting a sort of lump sum payment to write off these mortgage debts then? I am sure my solicitor said that there are some who will 'do a deal?' Do you know if they are helping people at all?

    Are you talking about after keys are handed back in or the property repossessed or if there is a shortfall in the monies obtained from sale?

    I can't see why any lender would not pursue the debt, I can't envisage C&G writing off anything that they haven't chased first.
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SMEIGALS1
    SMEIGALS1 Posts: 17 Forumite
    Yes I am talking worst case scenario, if I can't sell it, C&G won't help me with a payment plan and it falls short when THEY sell it...I was wondering if I then offered a lump sum for MY part of the debt they would do a deal with me?
    When I had a buyer last year I was offered £235k so it covered all debt, this year max has been £210k so I think I am short my £30k plus. Reckon I will have to hold on and hold on! No we don't know where he is, the only reason I wanted him off mort is if it went into a profit situation in years to come, he can get get half then regardless if I have paid since 07 can't he? Thanks by the way....
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    You are not married and he is AWOL so to speak and not paying anything towards the debt so I wouldn't think practically his position is great but get some legal advice, you can give this helpline a call for pointers etc http://www.communitylegaladvice.org.uk/ or you may find that you have access to a legal helpline through your current buildings and contents insurer?
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • SMEIGALS1
    SMEIGALS1 Posts: 17 Forumite
    Thanks so much for all your advice today!!!!!
  • Mrs_Bumble
    Mrs_Bumble Posts: 1,028 Forumite
    No worries:) good luck!
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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