Repossession advice- what happens next?...

cpisthedbb

Basic background to how I ended up at the repossession stage….

Split up with long term partner, whom I had had a child with.
Had a 100% mortgage for £85000 which we took out over 2 years ago.
She kicked me out the house so I had to find somewhere else to live. I was unable to pay the mortgage on this property and rent for the property I was living in. She refused to pay any money towards the mortgage and refused to sell (due to having to pay money out for a HIPs pack at the time).
I tried everything possible to get the mortgage transferred to my name but was unsuccessful. This was due to the house valuation coming in at around £12000 below what we paid for it,
The last payment for the mortgage was made by me in March 2010.


Now, I’m after some advice what to do next.

I received the EX370 form from the court service saying this is going to court on 18/01/10 for the mortgage company to repossess.

There was a questionnaire attached to this which I have yet to fill out.

Previous to this I had a perfect credit score. My last option would be to go bankrupt but I can see this happening as we will have a joint debt of around £20000 when the house sells with all the fees.

I currently cannot afford a solicitor so any advice would be very grateful…..

Flyboy152

I can't see the reason for not selling, being the cost of the HIP, most estate agents included it in their fees, payable after completion; were there any other reasons?

What alternative accommodation was being planned for your child?

What maintenance are you currently paying?

Do either of you work?

What reasons did the lender give for not transferring the mortgage and why was this seen as an option?

Having a debt of twenty thousand pounds is not going to stop you from becoming bankrupt, in fact, it is likely to cause it.

cpisthedbb

Flyboy152 wrote: »

I can't see the reason for not selling, being the cost of the HIP, most estate agents included it in their fees, payable after completion; were there any other reasons?

What alternative accommodation was being planned for your child?

What maintenance are you currently paying?

Do either of you work?

What reasons did the lender give for not transferring the mortgage and why was this seen as an option?

Having a debt of twenty thousand pounds is not going to stop you from becoming bankrupt, in fact, it is likely to cause it.

Thanks for the quick reply.

As far as I'm aware my ex partner has made no provisions for accomodation.

I currently pay £180 pm to her which is the full maintenence.

I applied for 4 seperate mortgages. 3 of them where declined because I was earning too little to afford the £85000 mortgage on my own. When I finally got a mortgage accepted with another company, their house valuation came in at around £12000 lower than what we paid for it.

I probably worded the last part wrong. I was expaining that my last resort would be to go bankrupt...

Flyboy152

cpisthedbb wrote: »

Thanks for the quick reply.

As far as I'm aware my ex partner has made no provisions for accomodation.

What discussions took place whilst you were negotiating the sale of the house? What efforts have you made to accommodate your son/daughter?

I currently pay £180 pm to her which is the full maintenence.

Who has decided on the maintenance amount?

I applied for 4 seperate mortgages. 3 of them where declined because I was earning too little to afford the £85000 mortgage on my own. When I finally got a mortgage accepted with another company, their house valuation came in at around £12000 lower than what we paid for it.

What did your current lender say about transferring the mortgage and why did you see this as an option? Have you considered letting the property?

I probably worded the last part wrong. I was expaining that my last resort would be to go bankrupt...

Bankruptcy is certainly an option, but only as a last resort. It comes with long term consequences.

cpisthedbb

What discussions took place whilst you were negotiating the sale of the house? What efforts have you made to accommodate your son/daughter?
She agreed I could try and get the mortgage in my name. I tried and was unable to. She then refused to sell for various reasons, the HIPs been the main. She would have been awkward though and not shown people around etc. She would also not sell for any loss at all, even though we were very unlikely to make money on it.
I’ve made no efforts so far as she’s been living rent free for a year. I now live in a 2 bedroom house so if it comes to it my daughter can stay with me.

Who has decided on the maintenance amount?
CSA
What did your current lender say about transferring the mortgage and why did you see this as an option? Have you considered letting the property?
You can’t just transfer a mortgage, you have to take out a completely new one. Believe me I’ve tried every possible option with it. In theory they should have let me try (I would have been able to anyway) paying for it on my wage as I told them it would end were I am now.
No mortgage has been paid for a year, it’s to late for this. Plus she didn’t want to rent it out. She basically wants it to get reposed so she can get a council house. She couldn’t get a council house with her name on the mortgage so she’s decided to live rent free for a year, get the house reposed, then get a council house by becoming homeless due to repossession.

Bankruptcy is certainly an option, but only as a last resort. It comes with long term consequences.

This is what I want information on really as my searching on the web haven’t given me any answers to what happens next in this process…

Flyboy152

cpisthedbb wrote: »

She agreed I could try and get the mortgage in my name. I tried and was unable to. She then refused to sell for various reasons, the HIPs been the main. She would have been awkward though and not shown people around etc. She would also not sell for any loss at all, even though we were very unlikely to make money on it.

It certainly sounds as though she was being difficult, but then, on the face of it, it could be understood.

I’ve made no efforts so far as she’s been living rent free for a year. I now live in a 2 bedroom house so if it comes to it my daughter can stay with me.

To whom should she have been paying rent? Is the mortgaged house now empty?

You can’t just transfer a mortgage, you have to take out a completely new one. Believe me I’ve tried every possible option with it. In theory they should have let me try (I would have been able to anyway) paying for it on my wage as I told them it would end were I am now.

You can under certain circumstances. Without knowing greater detail, it would be impossible for me to conclude as to whether your lender was refusing you unfairly or not.

No mortgage has been paid for a year, it’s to late for this. Plus she didn’t want to rent it out. She basically wants it to get reposed so she can get a council house.

That makes sense to me, seeing as your daughter will need somewhere to live. Is your ex-partner working?

She couldn’t get a council house with her name on the mortgage so she’s decided to live rent free for a year, get the house reposed, then get a council house by becoming homeless due to repossession.

Is she renting privately?

This is what I want information on really as my searching on the web haven’t given me any answers to what happens next in this process…

I am not an expert in this field, I am sure someone will come along soon who will know more than me, but there are important factors to consider, before this decision is taken, not least what your near term plans are and how it will affect your ex-partner.

cpisthedbb

Flyboy152 wrote: »

To whom should she have been paying rent? Is the mortgaged house now empty?



You can under certain circumstances. Without knowing greater detail, it would be impossible for me to conclude as to whether your lender was refusing you unfairly or not.



That makes sense to me, seeing as your daughter will need somewhere to live. Is your ex-partner working?



I am not an expert in this field, I am sure someone will come along soon who will know more than me, but there are important factors to consider, before this decision is taken, not least what your near term plans are and how it will affect your ex-partner.

By living 'rent free' I meant that she has lived in the house without paying a penny towards covering the mortgage. She is currently still living in the house and is working part time 2 days a week.

I tried twice with my mortgage lender (HSBC) to try and get the mortgage transfered to my own name. I tried everything including putting my dad on the mortgage. I was unable to transfer the deeds with HSBC...

MichMoor

I am in a similar position but not at repossession stage, split up from wife in June I moved in with relatives and payed half of everything but could not sell house. She recentlt did a runner and I cannot afford mortgage on my own and will probably voluntary reposses house, I did recently get a letter from my ex saying she would have no objection to the have being repossessed. Have tried everythin to sell no luck, run out of thing to sell to keep me going and struggling with, had a bad affect on my mental health, being treated for depression and being alone have decided to let the house go rather than fight to keep it, do not want it anyhow.

Anyway am not a expert but would advice you to go to CAB, CCCS or debtline, but once the house is repossesed the mortgage company has a duty to try and sell it for the best price they can, failing this they may let it for a while (this happening to a house round the corner been repossesed now letted by mortgage company) then they may sell it at auction for what they can get.
Once this has been down it sounds like there will be a shortfall which you and your ex will be liable for and they will expect you to pay. Depending on this you may think at this stage bankruptcy would be the better option. I am not tellin you to go bankrupt now, but it maybe the best option as it would include any future shortfall, but take proper advice on this.

Good luck

cpisthedbb

MichMoor wrote: »

I am in a similar position but not at repossession stage, split up from wife in June I moved in with relatives and payed half of everything but could not sell house. She recentlt did a runner and I cannot afford mortgage on my own and will probably voluntary reposses house, I did recently get a letter from my ex saying she would have no objection to the have being repossessed. Have tried everythin to sell no luck, run out of thing to sell to keep me going and struggling with, had a bad affect on my mental health, being treated for depression and being alone have decided to let the house go rather than fight to keep it, do not want it anyhow.

Anyway am not a expert but would advice you to go to CAB, CCCS or debtline, but once the house is repossesed the mortgage company has a duty to try and sell it for the best price they can, failing this they may let it for a while (this happening to a house round the corner been repossesed now letted by mortgage company) then they may sell it at auction for what they can get.
Once this has been down it sounds like there will be a shortfall which you and your ex will be liable for and they will expect you to pay. Depending on this you may think at this stage bankruptcy would be the better option. I am not tellin you to go bankrupt now, but it maybe the best option as it would include any future shortfall, but take proper advice on this.

Good luck

Cheers for the reply.

I'm going to contact CAB on Monday regarding this. I'm not holding much hope with CAB though as I've spoke to them in the past about another matter and they were less than helpful.

SouthCoast

cpisthedbb wrote: »

Cheers for the reply.

I'm going to contact CAB on Monday regarding this. I'm not holding much hope with CAB though as I've spoke to them in the past about another matter and they were less than helpful.

You could also try the Shelter dedicated help line 0300 3300 515

http://england.shelter.org.uk/get_advice/repossession

Flyboy152

cpisthedbb wrote: »

By living 'rent free' I meant that she has lived in the house without paying a penny towards covering the mortgage. She is currently still living in the house and is working part time 2 days a week.

As she has a young child to care for, she probably doesn't have the opportunity to get more paid work.

I tried twice with my mortgage lender (HSBC) to try and get the mortgage transfered to my own name. I tried everything including putting my dad on the mortgage. I was unable to transfer the deeds with HSBC...

If HSBC already have the deeds, I am confused why that would be an issue if you were simply re-mortgaging with them. If you were re-mortgaging with someone else, they are not going to release the deeds if you haven't settled any defaults with them.

I would imagine that your ex-partner has decided to treat herself and yours and her daughter as a priority, when it comes to securing accommodation for themselves. Which, on the face of it, may seem a little unfair from your perspective, but the most important thing for you to consider, is the future of your child and making sure she has somewhere to live. This is what happens when relationships fall apart and you will just have to accept that when things go wrong, they can be as bad as this.

I really think you need to just allow the repossession to go ahead and accept that you will be in debt by twenty thousand pounds and either work out a settlement with the mortgage lender, or go for bankruptcy. However, don't forget you need to make sure that your daughter is accommodated and I am afraid that includes her mother as well.