Friends Ex Refusing To Pay His Half - Repossession Fear

Twinkly

Just hoping for some advice from someone who may have been through something similair and has practical advice based on their experiences. I have been through some of the legalities myself and gathered as much concrete and hypothetical information as possible but I feel that others experiences are worth their weight in gold and may calm her down a bit.

My friend and her ex bought the property on a joint mortgage after being together for 5 years. They lived in it for approximately 18 months together with her son (ntot his bioligical child). Out of the blue he moved out last summer although did continue to pay his half - for 6 months. Then 6 months ago he pleaded abject poverty while getting a solicitor to write letters to her saying she had to sell the house OR if she moved out within 14 days he would take over full payment of the mortgage and move back in - with new girlfriend (naturally :mad:).

The solicitors were rebuffed at every step, fairly easily as most of their legal advice to him and threats to her was half-baked and seriously questionable. How DO these people pass their exams ? I digress....He hasnt carried out any threats (legal ones anyway) so far.

She lives there with her son (not his biological child) and has no intention of selling her home if it can be avoided. She has always maintained her half of the payment and kept the mortgage company up to date with what is going on sending copies all correspondence - soliticor included - so they are well aware of the situation.

She would like to be able to take over the mortgage in its entirety subject to an extension of the mortgage term and her income and is willing to discuss clearing the arrears subject to his being removed from the mortgage and frankly, from around her neck. He would be only too happy for this to happen but flat out refuses to contact the mortgage company and denies receipt of any letters from them - despite slipping up and being found lying time and again.

Now that are now the statutory 3 months arrears built up that would enable repossession proceedings to commence she is in a precarious position.

Her last correspondence advised that she is willing to discuss solutions to the problem but whilst his name is on the mortgage and he is not co-operating at all with the mortgage company - denying receipt of letters and will not contact them - she feels trapped in the legalities of the situation.

Any ideas please ?

Caz3121

If it is a joint mortgage then they are not responsible for half each they are each responsible for the whole amount and the mortgage company will not be concerned with what % is paid as long as it is 100% total.
If she wants to stay in the property she should try to do it quickly, with mortgage arrears to her name (and his) she may find it difficult to get one.
It is not unusual for the person that remains in the property to pay the full mortgage.

opinions4u

Twinkly wrote: »

She has always maintained her half of the payment

Borrowers are jointly liable for the whole payment. If one doesn't pay then the other is responsible for all of it.

she feels trapped in the legalities of the situation.

The reason that she feels trapped is that she is trapped.

- if the mortgage isn't paid in full each month then sooner or later the lender will move for repossession. The only way to avoid this is for a payment arrangement to be made with the lender and kept. A lender is unlikely to allow an arrangement to pay less than the contracted payments to last for any significant period of time.

- nearly every lender I know requires a mortgage to be fully up to date, often for longer than 12 months, before they will consider releasing an individual from that commitment.

Unfortunately, from the detail posted, it would seem that repossession is a probability. Your friend should take advice rapidly from somebody like CAB or Shelter. This issue could well ruin her credit history for well beyond the next decade.

Is there any way that she can arrange a sale (with the agreement of her ex) that would clear the mortgage in full, allowing her to split any surplus with her ex and then move on with her life? Or is there a negative equity issue?

It's a horrible situation for her. I'm sorry I can't put a more positive spin on things. CAB or Shelter for advice. And fast.

Mrs_Bumble

As above the fact that she feels that she has maintained her half means nothing.

joint mortgage means jointly and severally liable for the mortgage so if one isn't paying the other has to maintain the whole mortgage, which it doesn't sound like your friend has, so now there are arrears to be contended with.

Has your friend sought legal advice?
Does your friend have an income, if so do you know how much?
What is the current property value, https://www.zoopla.co.uk can give an indication
What is the current mortgage
Who is the current lender
What is the current mortgage balance
is the current mortgage on repayment basis
What are the current arrears?
Are there any other credit commitments?
Is she in a position to rent a room?
Is the biological father paying maintenance?

Sorry lots of questions! but trying to fathom to the bottom of whether there is any way forward.

lellow_lorry

A ruthless way and typical in breakups....Could you get a mortgage to buy him out?? Other options are to cover his half.....document it and proceed with court action to have it signed over and all costs incurred reimbursed.. but can you afford it? Its a terrible situation to be in good luck

Twinkly

Thanks for the responses. We are well aware that she is legally obliged to pay the entire mortgage payment. However, the mortgage is joint and would never have been agreed on her wage alone.

Personally I feel that this is one point that should be addressed in law, would halt a lot of unneccessary repossessions and oblige lenders to renegotiate such contracts when circumstances like this arise. For instance repossess the share, 50% or whatever they decide, held by the party that refuses to pay and transfer it where possible to the party that does. People are losing their homes because of unforseen malice by the other party and mortgage companies should and could do more to negotiate around it and neutralise it.

From the responses you have given I think I may have provided too much detail and not been specific about what I really need from anyone here who can provide it.

I'll try again. Under circumstances where he is not communicating with anyone and has stopped payment of what was reasonably considered to be HIS half - as it is a joint mortgage and would not have been granted on her wages alone irrespective of the now legal obligations - what exactly can she do ?

She can not sell without co-operation. She can not take over the mortgage in her name alone without co-operation. She can not legally do Anything without his co-operation. Or can she ? That is my point. Experience of this situation is vital. If no one has experience and can not offer practical advice particular to this situation then thats fine. Thanks for reading.

Twinkly

lellow_lorry wrote: »

A ruthless way and typical in breakups....Could you get a mortgage to buy him out?? Other options are to cover his half.....document it and proceed with court action to have it signed over and all costs incurred reimbursed.. but can you afford it? Its a terrible situation to be in good luck

How would she go about proceeding with court action to have it signed over ? This would be the ideal solution but where would she start ?

Bearing in mind that although a solicitor will be needed to do the court side a lot of investigation can be done for free on the internet to keep costs down. Any info you can give me or even point me in the right direction with the appropriate google phrase would help. Thanks

Mrs_Bumble

The problem that your friend has is that she can't afford to take on the mortgage. So where a court can agree in some circumstances to sign a house over to one party, it doesn't change the fact that the mortgage company won't release him from the mortgage because your friend can't take on the mortgage. Catch 22.

What is the ex's position in relation to the house, is he happy to come off the mortgage? happy for it to be sold?

Your friend needs to seek legal advice, a starting point can be community legal advice http://www.communitylegaladvice.org.uk/

She might also want to speak to Shelter in relation to the arrears and potential legal action taken by the lender.

The problem is that when relationships breakdown the fallout tends to be nasty, and so although the ex entered into a legally binding financial agreement, he isn't in the property and doesn't sound like he cares what happens and so even if the lender leans on him they can't physically make him pay and as they have the property as security for the debt then they know that they always have that avenue to pursue, the sad fact is that typically cases in arrears and with lender collections departments are because of relationship breakdown.

benjo

I have sympathy for your friend, you seem to be saying that she wishes to take over the mortgage in her own name but then you point out that the mortgage would never have been given on her salary alone - unless her salary has increased to enable her to take on a mortgage for the full value owed then whatever her ex does or doesnt do is irrelevant, since she wouldnt be able to borrow the amount of money she needs sadly.

Other advice given here is sound, she is equally liable for all of the debt, regardless of how uncooperative her ex is being she is cutting her own throat by paying only half - since her credit worthiness will suffer just as much as her ex's will - and given that she wishes to take on the mortgage if she can possibly afford to pay the whole amount she should do that or she may find that nobody will lend any amount to her no matter how small.

Now as for what she can do - well, she could offer to buy him out (assuming she is able to do that - see above). It would stick in my throat to do this, but it may be an option. Another alternative is to await repossession - and that may not be far away, not in your friends interests imo. She really needs a good solicitor and thats going to cost Im afraid - goodluck to her though.

Rockporkchop

Twinkly wrote: »

She can not sell without co-operation. She can not take over the mortgage in her name alone without co-operation. She can not legally do Anything without his co-operation. Or can she ?

She could certainly have asked the mortgage company to increase the term of the mortgage without his permission. I have regularly changed the term of our mortgage without DH's permission - it only takes a five minute phone call.

Has she got the money or could she borrow the money to pay the arrears? You say that she has paid her half but could she have afforded to pay the whole mortgage, even if she didn't want to or feel like she should? If it was me, I would beg or borrow the money to pay off the arrears and then agree a plan with the lender, such as changing to interest only and increasing the term of the mortgage. Then, after I had sorted that out I would work on getting his name removed from the house and the mortgage without the extreme urgency there is at the moment.

The fact that the mortgage wouldn't have been granted based on just her salary is irrelevant now, it is about affordability and if she is willing to continue her current mortgage then they will almost certainly let her if she can afford it. It really isn't in the lender's interests to repossess for such a small amount of arrears.

Mrs_Bumble

The fact that the mortgage wouldn't have been granted based on just her salary is irrelevant now, it is about affordability and if she is willing to continue her current mortgage then they will almost certainly let her if she can afford it. It really isn't in the lender's interests to repossess for such a small amount of arrears.

To the lender affordability is everything, they most certainly won't let her take over a mortgage in her sole name if the figures don't add up, it isn't responsible lending. While they have 2 people on the mortgage there is in theory twice as much chance of getting the mortgage payment.

Whilst the other party is named on the mortgage in theory the Lender should require both parties permission to alter the mortgage in any way, as extending the term, switching to interest only, increase the overall cost of the mortgage and so there are financial implications.

The lender won't seek to repossess for a small amount of arrears but if the arrears continue to mount up because the parties can't agree and one won't pay they can't allow the arrears and costs to keep increasing.