Friend refusing to pay his share of mortgage!

wharty

Hi sorry if this is the wrong place for this thread please move if required.

My brother shares a house with his friend and his friend is now refusing to pay his share.

What do you think my brother can do? could he sue our friend for the money? what happens to ownership of the house if my brother is forced to pay his friends share of the mortgage?

What will the mortgage company do if my brother pays his half and his friend doesn't pay his?

Could my brother file a petition for bankruptcy if he doesnt pay?

Thanks for any advice.

skintandscared_2

Have they bought the property together? Why is the friend refusing to pay his share?

holly_hobby

If the mortgage was effected as joint tenants - then both parties are jointly and severally (individually) liable for the WHOLE monthly mge payment.

If your brother only paid half of the monthly mge repayment he would be in arrears - and after 3 mths - the lender can apply for foreclosure (reposession order).

Your brother would have to seek legal advice for a personal case against his friend - however unless there was a written agreement that both agreed to pay 50% each - I fear this would fail in court.

If the mge was written as tenants in common - the situation may be a little different.

Hope this helps

Holly

wharty

skintandscared wrote: »

Have they bought the property together? Why is the friend refusing to pay his share?

They bought it together and he just told me that it's tenents in common on the deeds?

Not paying because he says he doesn't think he should. Not lived there for 6 months since he moved in with his girlfriend.

holly_hobby

Your brother should apply to have the agreement disolved, although if his income is not sufficient to service the loan on its own, the lender may not allow for the removal of the friends name from the mge itself.


With regards to the monthly payments, technically your brother isn't liable for the friends share, BUT he should check his mge contract/terms of offer regarding maintenance of payments - there may well be clause in there making both parties jointly & severally liable regardless of the tenants in common issue.

Bottom line is he needs to speak to a solicitor to asertain his position & best route out of it.

Hope this helps

Holly

CLAPTON

what's the house worth
what's the mortgage
is the 'friend' willing to give his share away
is your brother's income sufficient to take the mortgage on (i.e. would the mortgage company allow him to become sole owner)

opinions4u

holly_hobby wrote: »

If the mortgage was effected as joint tenants - then both parties are jointly and severally (individually) liable for the WHOLE monthly mge payment.

If your brother only paid half of the monthly mge repayment he would be in arrears - and after 3 mths - the lender can apply for foreclosure (reposession order).

Your brother would have to seek legal advice for a personal case against his friend - however unless there was a written agreement that both agreed to pay 50% each - I fear this would fail in court.

If the mge was written as tenants in common - the situation may be a little different.

Assuming the mortgage is in joint names then each borrower is individually liable for the whole mortgage payment regardless of the joint tenants / tenants in common status of the property ownership.

With regards to the monthly payments, technically your brother isn't liable for the friends share, BUT he should check his mge contract/terms of offer regarding maintenance of payments - there may well be clause in there making both parties jointly & severally liable regardless of the tenants in common issue.

No technical about it. Joint borrowers are liable for the full payments and the full debt - if one doesn't pay, the other is required to.

Senior_Paper_Monitor

Tenants in common, joint tenants, the price of fish has gone up - it all makes no difference.

The mortage is joint and several (for the total due) with no exceptions !

dancingfairy

Unfortunately your brothers friend is stupid/doesn't care. This could see both their credit ratings down the pan and the threat of massive debts hanging over them which could result in 2 bankruptcys
Your brother should get help and advice from one of the free debt advice charities such as National Debtline, CCCS, or the local CAB.
As has been said he ideally needs to buy the other person out otherwise another option out of the mess would be to sell up and split the profit (if any)/losses (by each person getting a small personal loan if necessary to get a clean break), or perhaps the second room could be rented out to a mate to help cover the mortgage costs?
Best of Luck
df

skintandscared_2

Your brothers friend OWNS half a house and is just walking away?? Makes no sense.

pramsay13

Why doesn't your brother get a tenant to rent the room at the cost price for 1/2 the mortgage (or for more and make some extra money?)
This is really what the friend should do but your brother might need to take the initiative as the friend doesn't sound like he is being very wise.