Help! im getting screwed by my mortgage company and my ex!

cookieshaw

Hi I am looking for as much advice as possible regarding my slightly tricky situation... this is the situation:

Just over 3 years ago (aug 2007) my ex partner and I bought a flat, we used a mortgage advisor who was a friend of his and without sounding like like a 'silly woman' i left most of the details down to him. the mortgage advisor said to us about taking out an endowment policy and an interest only mortgage, I recall her saying that we could cancel it after we had signed details as we would surely be selling before the mortgage was up. So we moved in and several months later my ex was struggling to pay his debt (credit cards and loans he has taken out before we were together) I was forced into believing that taking additional lending of the new flat was the best way forward. so he completed the forms.. i was 'inbetween' jobs at this point and my ex put me down as still working at my old job. Im sure he even changed the dates after it was first submitted. so the loan was approved and as soon as the 18k loan was in the bank we paid off all his debts (i used 2k to pay a loan of mine) HOWEVER 6 months down the line my ex left. and since that date he has not paid a penny towards the mortgage or this loan..I have tried speaking to my mortgage company who "dont care who pays it as long as it is paid" I have tried taking my ex to court (through legal aid) he threatened to declare himself bankrupt (as he has now run up MORE debt) I reluctantly applied for a transfer of equity as I thought if im paying it I may as well own it all, however this was declined because I dont fit the companies 'lending criteria' however they are happy to take my money every month. The loan has left me with a similar amount of negative equity so I am unable to sell.

I feel like anyone who does 'whats right' get a kick in the balls! and someone else can just walk away from his debts!

Any pointers, advice or "how could you be so stupid" 's are all welcome!!

thanks in advance

silvercar

You need to decide if you want to and can afford to keep the property.

Annisele

What is the property actually worth, how much debt is secured on it (including the original mortgage and all subsequent charges), and how much do you earn? Those answers will give a clue as to whether it is sensible/possible for you to try to keep the property.

You might find some helpful information if you google "undue influence" and "mortgage". However, I'm assuming that you signed the forms for the second charge (and therefore fraudulently stated that your earnings were higher than they were)? If that's the case, you might not want to draw too much attention to the transaction. In addition, if part of the loan was used to repay your debt, it wasn't entirely for your ex's benefit (some of the cases where charges have been set aside due to undue influence have involved the wife getting no benefit at all out of the deal).

cookieshaw

Hi, yes i signed the papers for the loan. there is around 115k outstanding and if i was to sell it may sell for max of 90k. the loan that was additional lending/loan from our mortgage company is £18,000

yes i did use some of the loan 2k of 18k so a small amount. so is a lot to pay back 16 grand that you never benefited from and we where never married, i believe it may have been more helpful if we were,

If i could sell the property and break even i would, however that is not an option, I can afford the payments on the mortgage and loan - just. I am a commission based worker so therefore is harder for me to ever re mortgage as well, therefore paying for something (already 2 years) that he is entitled to half of (if there is ever any equity). its seems im learning that 'joint' doesnt mean 50/50 however you can not pay for years and still be entitled to half?

his idea of solving this problem is letting them reprocess the property. He really doesnt care about paying his debts or future - i on the other hand do and thats why i have paid and be trying to fight him for 2 years.

Annisele

I think you might be better off posting on either the debt-free wannabee board or the bankruptcy one.

I don't mean to scare you with mention of bankruptcy; it's just that the peeps over there are more likely to be able to tell you the effect on you if your ex declares himself bankrupt. I think (but by no means an expert and ready to be corrected) that if your ex does go bankrupt, you can buy his interest in your house for a nominal fee of £1 or so. That would mean that any future gains were entirely yours - but it wouldn't solve your immediate problem.

I also think you should seek advice as to whether the second charge on the house (the £18k loan) can be enforced against you - again, I'm no expert on that. On the one hand, it sounds as though your ex might have exerted undue influence, but on the other hand you lied to the lender and drawing attention to that fact might not turn out well for you. I suspect the Citizens Advice Bureau might be able to suggest a way forward, but again the DFW forum would be a good place to start.

So long as you keep paying the mortgage, the lender isn't going to repossess the house. You and your ex are 'jointly and severally liable' for the loan - which means that the lender doesn't care at all whether the money comes from you or from him, just so long as it comes from one of you.

What does your solicitor say about the whole affair? Presumably you have a solicitor through the legal aid?

cookieshaw

thanks,

It doesnt have a massive effect of me my ex going bankrupt, but my solicitor and courts didnt really want to waste time/money perusing this if that was the case.

apart from taking my ex to court for half the mortgage and loan it just half the loan, no one really has any other advise for me.

just proves you do things by the book and u get f***ed - stop paying your debt and you get away scot free!

i guess this is just a very expensive lesson.
:mad: :mad: :mad:

Conrad

These are your options;

1) Stay as is and carry on paying

2) Sell and also come up with the money to repay negative equity

3) Get repossessed / go Bankcrupt and walk away from it all