Any way around this mess? - Mortgage shortfall if to sell

ALIBOBSY

Surely you need to also make it crystal clear to the mortgage company if they don't accept you will have to default on payments and will nedd to go down the reposession/bankcrupt route.
As long as things are up to date most companies are unwilling to discuss any type of settlement as they assume you have struggled along so far and will continue to do so..

Good luck

ali x

lindens

cottlad wrote: »

Hmm he doesn't seem to be on the bankrupt register.
There is also a joint account that's been in the red for some time which he's promised to pay off. The bank have said they can't take my wifes name off the account until it's in the black. Is there anything i can do about this to stop us being chased for another hunk of cash?

No
I am in this situation myself. The bank have a signed letter off both of us and my ex is paying it off, but now and again when he defaults on the agreement, i get the phone call.

GDB2222

Richard_Webster wrote: »

If he forged her signature and re-mortgaged without her knowledge then that can be set aside - but it would be expensive to got to court to do so.

When you say expensive, I would hope the fees would be a fraction of the £50k disputed mortgage? Yes, I know it's easy to quote a low fee for that sort of work if you are not going to be instructed. Would this be doable on a no win-no fee basis?

I would have thought that a starting point would be to ask for copies of all the paperwork the lender has. If some of the signatures are markedly different from others (or different from any specimen signature), they ought to have noticed that and they may be more amenable to an early settlement. The OP is entitled to that information under the DPA (or at least his wife is).

GDB2222

The final re-mortgage was made with the promise that an interim loan i had been asked by him to take out to cover mortgage payments would be immediately repaid along with some extra cash.

Oops, just saw this. So, your wife was aware of the final remortgage at the time it was taken out, and presumably signed the paperwork. In that case, I think it would be very difficult for her to dispute now earlier remortgages that were done before that. She has effectively acquiesced in those through agreeing to the final remortgage, or at least she will have an uphill struggle to prove that she was unaware of those.

The case is also worsened through the passage of time. You say your wife has been paying the mortgage for several years, so she has been aware of the position for some years without complaining until now.

GDB2222

Dear Sirs,

This mortgage is in my name and that of my ex partner (Mr X.) He is now seriously ill with Huntingdon’s disease, which is a terminal illness, and he has not contributed to the mortgage since XXX. He has no job, no money, and he is living at his Mum’s. I am now pregnant, and I cannot afford to meet the mortgage payments, nor am I likely to have significant income for some years.

Mr X appears to have increased the mortgage on a number of occasions without my knowledge or agreement. I believe that the amount I am liable for is £220k out of the total £270k mortgage.

I never had any intention of staying in the property after my ex partner left, but the property has been on the market for 4 years without any interest. Last week, I had an offer of £249,950, which our estate agent advises is unlikely to be beaten because of the stamp duty threshold that people don’t want to cross.

I have no prospects and have run out of money. I therefore suggest the following for your consideration:
1. The house is sold for £249,950.
2. Of this, £220k is taken to pay the undisputed part of the mortgage.
3. The balance of the sale proceeds is held in escrow until the dispute over mortgage liability is sorted out.

I feel I inherited a big mess when Mr X moved out but was determined to see things through in order to protect my name and make sure the mortgage was always paid on time until the property sold. With the pregnancy, this is no longer a viable option.

I would appreciate it if this matter could be dealt with in a speedy manner, as otherwise we will lose the only offer we have had in 4 years. If you want to get the house valued, I will cooperate fully with your surveyor.


Yours faithfully,

cottlad

GDB2222 wrote: »

so she has been aware of the position for some years without complaining until now.

Yes. This is why we don't think complaining will be worthwhile or even relevant. As you say, she agreed to the final remortgage even though her ex then did a runner with the money and left her with an additional loan. We therefore want to go down the route of asking/negotiating with the lender to make this debt go away or else take the bankruptcy route. As mentioned in the letter bankruptcy is a last resort for her but we are left without much option.

I'm sorry for all the questions regarding the letter but this is probably the most important letter i've ever penned and will affect my family for many years, if not a lifetime. I therefore want to get it right 1st time.

cottlad

The missus isn't pregnant at this time. She does however want another fairly soon (maybe after this mess is sorted.)

cottlad

UPDATE:
The letter went off a while back and we got a call stating it had been passed higher up the chain and someone would reply within 2 weeks. The guy seemed confident some arrangement could be made. My question is, if we haven't heard anything before 1st Oct should we allow the mortgage payment to be taken? We are 100% up to date with payments and have never missed one and hoped we could sort things out without missing a payment which may protect wifes credit rating? By doing this are we basically telling the bank we can make payments afterall? We can't btw and would have to borrow off family to make the next payment which isn't a problem if it's a 1 off but is a problem if it stalls the bank making any decision.

Shoul;d we just call the bank on Monday and explain the next payment isn't affordable and that we need a decision ASAP.... then cancel the direct debit? Or should we pay as much as we can until the bank decides something?

silvercar

As the sale would not have ever gone through before the next payment is taken and you should want to protect a decent credit rating, I would be inclined to make this payment. In your next correspondence you could say that you paid it with money borrowed from family.

Jojo1daffy

cottlad wrote: »

The missus isn't pregnant at this time. She does however want another fairly soon (maybe after this mess is sorted.)

Amend the pregnancy reference to 'recently gave birth' and thank the poster for the letter then