Marriage break up - House in negative equity

poppy10_2

IWantToBeFree wrote: »

See my post above - I managed to have a quick chat over the phone with the lender prior to an appointment in a couple of weeks - they have said that they do a transfer of equity even if the property is in negative equity - all they are concerned with is affordability, and from a very quick view, it looks like he can alone meet their criteria.

Well, that sounds very generous of them. As blueberrypie points out, it's difficult to see why the bank would voluntarily give up one of their avenues for chasing any potential shortfall in the mortgage if the property were to be repossessed in the future. You must have a very cuddly bank.

opinions4u

IWantToBeFree wrote: »

See my post above - I managed to have a quick chat over the phone with the lender prior to an appointment in a couple of weeks - they have said that they do a transfer of equity even if the property is in negative equity - all they are concerned with is affordability, and from a very quick view, it looks like he can alone meet their criteria.

When I used to underwrite this sort of case I would allow the transfer of property ownership and loan to take place but would not release the other borrower from the mortgage commitment.

I think underwriters are a lot stricter these days, and simply wouldn't agree to anything in many negative equity cases.

Don't trust what you were told on the phone.