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friend has walked away from mortgage.

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Comments

  • princeofpounds
    princeofpounds Posts: 10,396 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Yes there is no easy way out of this, but you must do something because as the others have pointed out he continues to get a 'free ride' on your mortgage payments in the meantime.

    You can either sell the house and split the gains/losses, or you can take over the mortgage and ownership yourself.

    If you can't find him to get his agreement you will probably need to go to court to get a sale order. The house is up for sale at the moment but I have no idea how you are planning to do this without him around to approve it. If you have equity then give him his share, if not then you are going to have to split the remaining debt, or pay it yourself and sue him for his share.

    If you want to take the mortgage over then you should ask the bank if it is possible (or another bank potentially). You then offer to pay your friend any equity he is entitled to as per the mortgage valuation in return for him agreeing for you to take both the asset and liability over.

    Him staying hidden is not going to help as the bank will continue to pursue you both. As pointed out you are jointly and severally liable.
  • MiserlyMartin
    MiserlyMartin Posts: 2,289 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Its not that he owes you mortgage payments. Your 'friend' has probably !!!!!!ed off because he is scared you will sell the house at a loss, and he will be jointly liable for the loss.

    Sell while you still can at these prices.
  • dodger1
    dodger1 Posts: 4,579 Forumite
    G_M wrote: »
    Sell. Forget the 'moneymaking' scheme - it's trouble. If you can sell and pay off the mortgage (and hopefully have a little over too), then do it. Then start again older and wiser! If it's not selling, reduce the price till either it sells or you can't afford o pay the mortgage off (in which case you have got a problem!)

    Or take it over. But
    a) he has to agree to come off the deeds as well as the mortgage and
    b) the mortgage lender has to agree to let you take over - is your income enough for them to agree? Rent from lodger will not be taken into account by them.

    Do the bolded bit. Stay on the housing ladder. Just imagine if there is no equity and you sell, can you ever get a huge deposit together again to start another mortgage. Get a lodger, cut your expenses wherever possible but DON'T sell.
    It's someone else's fault.
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