Help! Emergency advice needed re mortgage to help daughter in time of need!

Chickenbrain2009

Hi.
please help! We have an emergency situation.

My daughter aged 35 has been married two years. Prior to her marriage she bought a house with her father. When she bought her current house the equity ( and hence her fathers interest in the house) moved with her. His interest amounts to 40k which he has said he doesnt really want back. He is 63 years old, and financally secure. When she married her father signed as guarentor for the mortgage and her new husband took over half the mortgage payments. He put no cash into the deal.

Just over a week ago she found out that her husband had, unbeknown to her, run up massive debts on loans and God knows what else. As they has seperate accounts she knew nothing about it. He is going to have to go for an IVA. The problem is the mortgage.

She is in a good professional job and earns 30K. The house is worth about 220k and there is 120K left on the mortgage. She wants to remove her husband from the mortgage to protect herself and her daughter (from a previous relationship). She will then take over her husbands money and handle the finances! Her husband has agreed to this.

The problem is her father. He is not in good health and so far we havent told him about these massive debts that have accumulated so as not to place extra anxiety on him. We are all agreed this is the best thing right now.

She has an appointment with the bank on Monday. On her own she is unable to take on the mortgage, HOWEVER, in my experience in marital difficulties perhaps she could extend the loan for now? The bank also want her husband removed from the mortgage.

What is the situation as far as her father is concerned? Clearly he has an interest in the property as he is the guarentor? Is there anyway round telliing him of this? If we do have to tell him is there any way we can come up with some excuse so he doesnt know what has happened, it will really really worry him?
She has so far been proactive with the bank, and has been to see them to discuss the situation. She is taking a responsible approach but is obviously very worried and doesnt want to worry her father and make him ill. Can anyone make suggestions as to a way out this? Can she make an agreement with the mortgage company to remove her husbands name without her father knowing? :eek: Please help, its worrying her to death.No one else in the family is in the position to take the mortgage over with her. She will have to meet any criteria herself. Incidently, the mortgage payments are not in arrears although she has discovered one CCJ with a charge on the house( or something) around 5k in total:(

CLAPTON

are you saying that her husband is named on the deeds of the house as well as named on the mortgage?

Chickenbrain2009

I have no idea, and I dont think she will know anyway. What difference would it make?

Chickenbrain2009

Her father has always sorted out her finances until she got married, but we dont want to ask him those sorts of questions right now

unite79

Given that he is on the mortgage, CLEARLY he is going to be on the DEEDS, but a the OP says, this has no relevance.

unite79

Aggh, Sorry, just re-read.

If Guarentor, then maybe not on deeds.

CLAPTON

Chickenbrain2009 wrote: »

I have no idea, and I dont think she will know anyway. What difference would it make?

if he is considering an IVA then its absolutely VITAL to know the answer as the OR (official receiver) can reverse the disposal of assets changed shortly before an IVA

and in any event the whole process will obviously be completely different if he is on the deeds and on the mortgage as opposed to similarly paying some money towards the joint living expenses.

unite79

If your Daughter earns 30k, as you say, and has a clean credit history with no loans, then she will be able to get another lender to offer her the full amount. Your problem comes that it appears this mortgage was incorrectly set up, namely Father wanted a financial interest in the house - He does not have, given the above. Unless he has safe guarded his deposit by having an agreement in place and placed with Deeds, which no lender would accept!

Chickenbrain2009

No, I think it was an informal agreement between father and son in law. In effect, he wrote off ( mentally at least) the 40k saying he didnt want it back, but he guarenteed the laon. Thats what I think happnened anyway. She doesnt want to move company, could the mortgae people not simply extend the laon in my daughters name only? Surely its in their best interests to do so as they will get their money, albeit more slowly?

CLAPTON

Chickenbrain2009 wrote: »

No, I think it was an informal agreement between father and son in law. In effect, he wrote off ( mentally at least) the 40k saying he didnt want it back, but he guarenteed the laon. Thats what I think happnened anyway. She doesnt want to move company, could the mortgae people not simply extend the laon in my daughters name only? Surely its in their best interests to do so as they will get their money, albeit more slowly?

let me say it again

if he gets an IVA then the OR can reverse any decision anout removing him from the deeds of the house; in addition it may well be seen as attempted fraud


you need to find out the full facts about ownership and they need to seek specialised help about the implications of IVA to handle his debts
I would suggest that they contact some-one like the CAB or Payplan (a not for profit debt help organisation )

Trollfever

What does the Land Registry say about charges on the property? Downloads cost £4.