Ex has run up arrears and repo is iminent

mpaxton78

Ok I'm posting this on behalf of my partner who is going to hell and back with her ex over their former home. The history is like this...

She left with the kids about 2 years ago for reasons I won't go into here. Mortgage was taken in both names, but he never allowed her to know what was going on with it or the general state of finances. She was aware of one missed payment before leaving, but since then he has incurred something in the region of £15k in arrears!

At no time has he asked for help from her and despite giving her solicitor as a contact point to the lender they too have never contacted her.

My understanding is that the lender has now made an agreement with him without her knowledge which allows him to repay at a level he can afford for 6 months. This is due to expire any time and the payments will rise dramatically, ultimately leading to reposession.

The property has been on the market for 7 months now for what is currently just enough to clear the mortgage plus arrears but with no sound offers. This is not surprising though given the state of the place as no effort has been made to make it saleable despite my offers to help.

Can anyone offer any advice as to how this should be handled, who is liable for the debt incurred since she left, and whether or not a repo would affect my credit rating?

The reason behind the last question is that she now lives with me and due to her current credit scoring ultimately I will need to finance replacement cars for both of us in the near future as well as borrowing for a loft conversion to house us all!

Sorry for the lengthy post but any help would be appreciated in these dark times

TrickyDicky

Becuase they took out a join mortgage, they are both equally liable for the mortgage. If the house is repossesed, it will trash both of their credit reports (if the arrears havent done so already).

None of this will affect you unless you want to take out any form of joint debt or you already have some joint debts. If you already have the link, you may be unlikly to get future credit. Without any current link, you should be fine if you go solo.

Be aware though, for her sake, if the house is repossessed, any equity is likely to be wiped out by fees and lowered price to get a quick sale. Then if there is any debt left over (including fees) she will be liable for those afte the house is sold.

mpaxton78

Thanks TD I guessed as much regarding my credit but wasn't sure if living together would tie her scoring to mine but if what you say is right there shouldn't be a problem.

As far as the the debt on the house is concerned the solicitors are fighting it out at the moment trying to push the blame his way as neither he or the lender disclosed the problem. Had they of done so then perhaps some or all of this debt could have been avoided. Unfortunatley it is looking likely to go to court in which case we have no idea what may happen. As you say worst case I think at this time is is the repo goes ahead and the house is sold for less than is needed.

Any ideas on how to hold off the repo if we can show a drive to sort it out and get it sold for an amount which puts everyone in the clear? Part of the problem on this front is that my partner is refusing to give the lender her current address in case it all goes belly up.

mpaxton78

Going back to what TrickyDicky has said we do have a joint back account which thankfully is in credit but would this be enough to tied her debts to me?

missile

mpaxton78 wrote: »

Going back to what TrickyDicky has said we do have a joint back account which thankfully is in credit but would this be enough to tied her debts to me?

I would close that pronto :eek:

mpaxton78

Had a feeling that was going to be the answer but not so sure it's going to be that simple as it's taken ages to get everything in 1 place as it is. There again if the implications are that bad then I guess I have no choice !

Would it be enough to remove her name? Or would I have top remove all transactions in her name from it too?

GMS

You would need to close the account and file a 'Notice of Disassociation' with the credit reference agencies.