Getting a Mortgage after a repossession

mrandmrsselby

Evening All,

My name is on my ex's mortgage still and the house is up for repossession soon, unless a minor miracles happens on her side.

My concern is how long will I have to wait to get a new mortgage of my own, I currently rent a house with my wife and kids, but would ideally love to own a property.

Any help would be appreciated has I 've searched all over the net and cannot get a straight answer!

Thanks

Neil

silvercar

Well you still have one mortgage in your name, on which it appears you are in arrears, so no-one is going to give you another mortgage at the moment.

After that repossession the lender will be chasing you (and the ex) for repayment of any shortfall.

I would say you are talking of at least 4 years and then the rate will probably be sky high.

PasturesNew

As silvercar said, the mortgage on the repossession is in your name - once it's been repossessed and the full shortfall/bill has been prepared, they'll be wanting their money back from you, your ex, both of you, either of you .... they don't care which of you, they just want it back. They will want it back for at least 6 years, some even up to 12 years. At some future point, you might think you've got away with it, you might get a mortgage, that property might then be worth more ... and in 11 years and 11 months you'll get a letter which basically says "Hey - you thought we'd gone away ... well, we waited .... and we're hoping now you've got something to give us ..... something valuable .... we still want our money ... what's your house worth now ...?"

You need to really find out who the lender is, find out how long they chase people for and if they're a good or bad person to owe money too ... and also try to get a feel for how much the final bill might be on the repossession.

mrandmrsselby

I was declared bankrupt in 2006 - solictors recommended it to remove my name from the mortgage, but it didn't work.
I will not be liable for any shortfall - my ex has a declaration of trust the house was worth £325k mortgage was only for £150k she is due the balance.

Due to the fact the mortgage and arrears should be covered even if the house is sold at auction, should this go in my favour?

Thanks again Neil

finnigan

We were repossesed back in the early 90's. We now have a mortgage we took on two years ago, we now want to remortgage but are unable to so because the banks lending criteria has changed to exclude peeps with repossesions etc in their history.
We have been advised to sit and wait for the banks to change, think its going to take a while.

Radiantsoul

mrandmrsselby wrote: »

I was declared bankrupt in 2006 - solictors recommended it to remove my name from the mortgage, but it didn't work.
I will not be liable for any shortfall - my ex has a declaration of trust the house was worth £325k mortgage was only for £150k she is due the balance.

Due to the fact the mortgage and arrears should be covered even if the house is sold at auction, should this go in my favour?

Thanks again Neil

Mortgage companies are going to be very wary of the fact you have been made bankrupt. I am not too sure why your trustee in bankruptcy was not interested in the property if there was a lot of equity.
The bankruptcy will sit on your file for six years. And the repossession will sit on your file too, probably for as long.
If I were you I would keep saving and address any other credit issues for the next two or three years, hopefully credit conditions will be better by then. Then get a decent broker to find a mortgage for you.

mrandmrsselby

The equity wasn't mine, I had signed a declaration of trust, £150k max or what is left after the sale and mortgages costs are taken belong to my ex.

She had put this amount into the property.

I didn't think I'd have much chance but its always worth asking.

Thanks

silvercar

The equity wasn't mine, I had signed a declaration of trust, £150k max or what is left after the sale and mortgages costs are taken belong to my ex.

Did your ex buy back the OR's interest in the property? If not, I don't understand why the OR isn't involved in the sale as anything above the trust declaration would go to pay back your creditors.

If there isn't any ongoing debt from the repossession then the lender won't be chasing you.

Wait til the bankruptcy disappears (2012?) then think about a mortgage.

?Why didn't your ex just sell up. With that much equity its odd to get repossessed?

mrandmrsselby

With the market slowing the OR decided that there would not be any profit on the property.
I have no idea why she hadn't sold it, I put it on the Market the day I moved out, but she refuses to put a sign up.
The mortgage is interest only too!
So even if it gets repossessed I may have a good chance if getting a mortgage in 2012?

Radiantsoul

mrandmrsselby wrote: »

With the market slowing the OR decided that there would not be any profit on the property.
I have no idea why she hadn't sold it, I put it on the Market the day I moved out, but she refuses to put a sign up.
The mortgage is interest only too!
So even if it gets repossessed I may have a good chance if getting a mortgage in 2012?

There is loads of equity though? I don't understand how the OR could have made that mistake unless there is something complex going on. I would not be surprised if the OR(or more likely a trustee) wants the share in the equity. I suppose it depends on when you signed this deed, it should not really effect you but your ex might want to be worried.

It depends what the market is like in 2012. At the moment you would have no chance without a large deposit, so if I were you I would start saving like crazy.

silvercar

mrandmrsselby wrote: »

With the market slowing the OR decided that there would not be any profit on the property.
I have no idea why she hadn't sold it, I put it on the Market the day I moved out, but she refuses to put a sign up.
The mortgage is interest only too!
So even if it gets repossessed I may have a good chance if getting a mortgage in 2012?

You'll pay a high rate. I expect the lender may want to know why you didn't pay the mortgage and allowed the property to be repo'd. From your point of view, the danger is that the lender works slowly and the repossession doesn't happen yet. The later it happens the longer it will be a black mark on your credit rating. with a lot of equity the lender is in no rush - they will always get their money back so could wait until prices increase. If your ex is currently paying no mortgage, she is also in no rush. Does she realise she won't be able to get another mortgage?