Ex still on mortgage & not paying, new mortgage app declined cos of his debts. HELP.

RACHIE77

Me and my ex had a mortgage together, he left me and i have been paying it ever since (and before he left actually).

I asked for the mortgage to be put into my name only but based on an initial assessment it wasn't possible as I don't earn enough on my own.

So my new partner and I decided to invest together and apply for the mortgage in our joint names.

We also decided to borrow some additional money, this money was going to be used to pay off my exes debts that he left behind, the reason for this is because the debts could be taken against the equity in the property if he doesnt pay them and declares himself bankrupt so we wanted to wipe the slate free to release the rope around our neck and start a fresh, the debts are about 15k.

I heard back from the mortgage company who said the mortgage had been declined. I asked if there was any reason why and they said that an initial credit check on the property showed unpaid debts and thats why they wouldnt authorise it.

I asked if it was a final decision and they said no it was going to be passed for second opinion and I would hear from them in 2 to 3 days (this was on 29th Oct), I explained the debts were in my ex's name and that the additional borrowing was to pay them off in order to start a fresh, and that the could see I have been paying the mortgage off on my own anyway, and that the new application would mean the person who has the debts is off the mortgage anyway.

I get the feeling its going to be declined and don't know what I can do.

Can I appeal?
Or am I going to have to start paying his debts off and try and clear 15k as soon as possible?
Can I negotiate with the debtors at a lower settlement figure?
Can I apply to the credit scoring agency to remove him from the property?
If so how?
Any ideas?

Thrugelmir

Your first issue is to sort out your finances with your ex.

RACHIE77

Thrugelmir wrote: »

Your first issue is to sort out your finances with your ex.

I have no finances with my ex?

He isnt and wont pay the mortgage, thats all there is too it, he isnt and wont pay his debts, they affect me.

He said I can keep the equity in the property but i need to get things sorted with the mortgage before the solicitors will release the equity.

Thrugelmir

RACHIE77 wrote: »

I have no finances with my ex?

You have a joint mortgage still.

The £15k of debts are in your name ?

RACHIE77

Thrugelmir wrote: »

You have a joint mortgage still.

The £15k of debts are in your name ?

How am i supposed to sort out the joint mortgage when they wont let me take his name off?

no they are in his name, but since he has no intention of paying them, and technically he has equity in the property since it was in joint names, the debts can be claimed against my equity.

beecher2

Are the debts secured against the property? Is selling up, paying off all debts and starting again an option?

RACHIE77

beecher2 wrote: »

Are the debts secured against the property? Is selling up, paying off all debts and starting again an option?

no they arent but a solictor told me to sell i have to declare that neither me nor him would go bankrupt in the next 5 years, which he cant do with those debts as I think he is considering it, so that would make the house unsellable. it also is part way through building work so will have to finish that first before selling.

beecher2

Never heard of that - how would anyone know whether they'd go bankrupt in five years or not? If you have equity and no secured loans, then I don't see what the problem is - could you get a second opinion on this?

RACHIE77

beecher2 wrote: »

Never heard of that - how would anyone know whether they'd go bankrupt in five years or not? If you have equity and no secured loans, then I don't see what the problem is - could you get a second opinion on this?

second opinion on selling/the bankrupcy thing? yeah i guess so, altho its a long term option as the building work means its pretty unsellable at the moment without getting that finished. It may be the only option tho to bide my time and do the house up to sell it.... I worry also about getting a new mortgage if this one is declined applying for a new one may have the same problem?

thanks for the suggestion, its not one i love but may have to consider it....

getmore4less

RACHIE77 wrote: »

How am i supposed to sort out the joint mortgage when they wont let me take his name off?

no they are in his name, but since he has no intention of paying them, and technically he has equity in the property since it was in joint names, the debts can be claimed against my equity.

Technicaly I don't think you can insist on him paying his unsecured debts when you buy him out you would have to give the money to him.

If you bought him out for a fair amount(fast sale after expences amount) then I don't think they can come after you.

Trollfever

beecher2 wrote: »

Never heard of that - how would anyone know whether they'd go bankrupt in five years or not? If you have equity and no secured loans, then I don't see what the problem is - could you get a second opinion on this?

From the guidance notes for the completion of form 6.28 debtors bankruptcy petition statement of affairs:



Guide to Section 9 – Property disposed of in the last five years



[FONT=Arial, sans-serif]1. If you have sold, given away or transferred, in the five years prior to presenting your bankruptcy petition, any properties, owned jointly or solely, you must provide the full details of the transaction. [/FONT]


[FONT=Arial, sans-serif]2. The official receiver has a duty to the creditors to report on any and all assets. If you have disposed of any assets (sold, given away, scrapped etc) the official receiver needs to establish that this was not done to the disadvantage of the creditors.[/FONT]