Voluntary repo stress

valos_mummy

Hi peeps; I posted ages ago about my situation with my ex and the flat we bought back in 2005 - things have come to a head since then. Here's some background, so you know what kind of a T*@t I'm dealing with. Thanks for reading.

1 bedroom, ground floor flat bought in 2005 with a Northern Rock together mortgage. We were very very stupid and took out additional secured loan. In total the outstanding amount is about £128,000. We split up in 2007 and I lived there for another year while he lived with his parents (the flat was in his hometown and nowhere near mine) I only intended to live there until it was sold but after a year and only one offer where the buyer changed their mind, it was clear a sale wasn't going to be happening. At the time we paid half the mortgage and I paid the household bills.

I moved back home in 2008 and we rented the flat out - the rental wasn't enought to pay the mortgage in full so we each needed to contribute about £80 per month each. This is when things went wrong. He wouldn't pay it. I'd have excuse after excuse - he'd then pay some and say he couldn't the next month and on it went. He was always irresponsible with money, preferring to go out on the town with his mates and to the bookies to bet on football matches. He has a job that pays £23,000 btw. He had a high amount of credit card debt, overdraft, and god knows what else after I left. In the meantime he got a new girlfriend and thanks to facebook, I know he went on a couple of holidays, a festival etc. But could he pay a mere £80 to keep us from getting reposessed? Noooo.....

I tried to sell the place again (at the time we also had to fork out for a HIPS which he did pay half for). The only offer we had was for £70k which was rejected straight away by NR. We went back to renting the flat out (it's close to town, about an hour from London on the train so we never had problems finding tenants) and the solicitor very kindly agreed not to charge us anything for his time.

But it was the same old story, and soon the arrears were around £5000. The excuses were every month and I couldn't exactly pop down the road and talk to him face to face (I don't drive, so it would take me £40 and 4 hours to reach him). I pleaded, I shouted, I nagged, I reasoned. It made no difference, he wouldn't answer my calls, texts or emails. I spoke to his parents (he still lived with them) but they didn't really care.

Around September I decided to ask NR to do an assisted voluntary sale with us; we completed a budget sheet each (after much nagging he finally sent his form) and the tenants moved out after their notice period. We were ready to go at the end of October. Ex would live in the flat for the 2 months NR said it usually took. Myself, my OH and his brother and wife (who live about an hour from the flat) all went down one weekend to furnish it. I found 2 sofas for a steal on ebay, we went down the skip and got a coffee table. We then went to the local poundland, Wilkinsons and Asda for basics like a kettle, dining set, mugs etc.

The only thing ex had to do was bring a tv stand and a tv from his house. He didn't turn up, saying he had a nightshift on at 6pm and was too tired. I went round his parents at 2pm and found out he was actually in town. He got very arsey when I called him out on it and hung up. We kept calling and calling and around 5pm my OH got hold of him and asked him just take 10 mins to drop the stuff off and we'd sort out the rest. He basically got told to shove it :mad:

He doesn't want to move in anymore (as he'll have to pay a couple months of bills). Although the place is furnished and I sent a letter to NR pleading our case and asking that the place go under assisted sale anyway (NR initially said someone had to be living there as furnished places sold quicker). NR refused to do this (we couldn't lie and say he was living there - NR wanted more budget forms from him)

I had now had enough - I didn't care what happened anymore and wanted the place gone and all financial links to him gone too. Now I find it's not as simple as that. I want to do a voluntary repo and have the shortfall split 50/50 but they won't split any debt. I don't mind setting up a payment plan with them but no way are they pursuing me for the whole amount!!

What I now want to do is have the repo, and go through an IVA (bankruptcy not an option I work within finance related stuff. I have no assets and live in a rented house with my OH). I'm concerned however. If I agree an IVA and repay the reduced amount of debt with that, do NR have any right to chase me for the remainder if ex doesn't pay it?

The wording of the voluntary letter concerns me also:

I/we understand that should the sale proceeds be insufficient to pay off the total amount *and it will be!* you and/or any insurer providing mortgage imdemnity cover *we don't have this btw* reserve the right to pursue me to recover the shortfall.

So even if I take out an IVA they can still pursue me afterwards?! Sorry to be so dense about the whole thing - I am just looking for a way to repay what I can after the repo without being held responsible for his half. The national debtline advised me that if I end up paying everything I can sue him, but balls to that, what's the point of suing someone who pees his money up the wall? Ex has told me he's with a debt management company called moneyworries. They are an actual company but whether he's with them I don't know, I don't trust him as far as I can throw him.

Oh, and the flat is valued at £90-95k, at auction it wil made diddly squat I imagine, so a shortfall is definitely on the cards. Any help will be gratefully received :A

Lynsey

Is there not a chance to get your morgage on an interest only and rent it out?? Or was the £80 p/m short each after the half payment??
At interest only or converting to a BTL, the rent may cover the mortgage. You obviously would want him off the title though.

Good luck, but you need proper legal advice, especially regarding his side of any debt.

Lynsey

valos_mummy

The £80 per month each was after the rental payment had been made, we still needed to make it up to the mortgage amount required each month. NR are reluctant to do anything like interest only, and they refused a BTL; maybe as the mortgage was for 100%?? They reduced the payments for a few months but that was it. Because the arrears are so high I imagine.

I have a solicitors appointment next week now, my plan is if they cannot wrangle any kind of split, I go for a full and final offer of around 15% and work my way up to 40% if they say no. If that's refused, I go for an IVA - as long as what is agreed is final and NR cannot chase me for anymore once it's paid off.

It's tough; being with the right man now and looking back to all that wasted time and money on the wrong one, and even 3 years after things ended, it's going to take even more time to be rid of him forever. But I will prevail