Getting out of a mortgage

pryko

Right, i know this sounds weird, but i need some help.

I met a girl a while ago, and we started seeing each other, but it's a bit complicated because at the time she was still living with her ex-fiancee because they had bought a house together. She has now moved out, but is still paying towards the mortgage. She wants out so that me and her can progress onwards, but she is feeling the strain at the moment as she feels she cant get out of her current situation and thus me and her can not really do anything.

The problem is, they've bought the house for around £100k and are about 4 or 5 years into the mortgage, but the house prices have declined, so if the sell they're making quite a loss and would still owe money on the mortgage, and her ex is refusing to take the mortgage as his own as he is self employed and may get into trouble with it, and also because he still thinks he can win her back.

Is there anything she can do about this situation? Someone told me that after 2 years there is a way of getting out of it, but i'm unsure of what this process requires.

Any help would be much appreciated. Thanks

beecher2

She can't 'get out of it' - she's jointly liable for the mortgage. If they sell for less than the mortgage they'd have repay the difference to the company, and if he's self employed the lender may not let him take on the mortgage himself if the sums don't add up. They need to talk through what their plan is for the future - is she paying half the mortgage at the moment? Is there someone else who can go onto the mortgage with her ex?

opinions4u

pryko wrote: »

Right, i know this sounds weird, but i need some help.

No, that doesn't sound weird!

I met a girl

Oh dear. They're nothing but trouble!

at the time she was still living with her ex-fiancee because they had bought a house together. She has now moved out, but is still paying towards the mortgage.

She is liable for the mortgage.

She wants out so that me and her can progress onwards, but she is feeling the strain at the moment as she feels she cant get out of her current situation and thus me and her can not really do anything.

You could rent.

Is there anything she can do about this situation?

She needs the agreement of her other half and the mortgage lender to get out of this situation. If one, the other or both refuse to co-operate she's stuck. Her ex could refuse to budge, or the lender could refuse to allow him to take on the mortgage - more than possible if he's self employed or the property is in negative equity.

Someone told me that after 2 years there is a way of getting out of it, but i'm unsure of what this process requires.

2 years. 5 years. 10 years. It makes no difference. Time does not release her from her obligations to the lender.

The best scenario is that all parties can agree to the sale of the property and, if there's a shortfall between sale price and mortgage debt, the use of savings to repay any shortfall.

I'd suggest she saves up to be able to expediate this, and uses her persuasive charms to get her ex to realse that this is the best way forwards for all as it allows him a clean break too.

he still thinks he can win her back

Keep a close eye on her while she's using her persuasive charms then!

Trollfever

Someone told me that after 2 years there is a way of getting out of it, but i'm unsure of what this process requires.

I know folks who are still paying for properties that were repossessed 15 years ago.
P.S.
Check out the Bankruptcy Board.

.

Conrad

Yup, the only 'way out' is to sell the house and then pay back the difference.
On the plus side prices are rising. Before I get shot for this, I was one of the original contributors to housepricecrash.co.uk and sold my B2L properties in 06/07, but now after some years I am more or less certain prices are rising fast, despite unemployment, rising Tax's, withdrawl of QE and the likelyhood of rising interest rates.

I've had the businest January since 2006. Investors are back in force - remember they dont trust pensions less than they trust property so nothing with quosh thier appetite to invest now, including rising rates.

Mini_Bear

I think the way out u hav heard only relates to separated married couples, once they have been seperated for 2 years one party can force the divorce thru. but even then it takes months if not years to sort out all the assets and niggles.
i would advise your girlf to go see a solicitor - some offer free 30min sessions and see if theres any way of getting this cleared up. Ultimately though she needs to hav a long chat with her ex and spell it out to him.

pryko

Cheers for the advice guys