What happens on defaulting mortgage?

Dreamer0

Hi,

I'm new here and I would greatly appreciate the help and guidance of those with knowledge on this topic.

As background, my wife and I are going through a divorce (her blame) and we are currently each putting a standing order of just over 50% of the mortgage into the old joint account each month for the lender to take their mortgage payment from.

The marital home is in joint names, as is the mortgage. We bought 3 years ago just before the major downturn in the market so the house is not worth what we paid for it. It is also worth the note that she paid for the 10% deposit, and has it written in a deed that she is entitled to this back first putting me in a very difficult predicament. At the moment we have agreed a 75:25 share in her favour but this is tentative.

The problem is that at the moment I am sleeping on a mate's couch which cannot go on much longer. I therefore have to find somewhere to rent with my 2 kids whom I see on weekends. I cannot afford to do both so what I really want to know is, what happens if I just stop my half of the standing order to fund this.

I have to be able to get on with my life and I don't see why I should suffer whilst she gets the benefit of having half of the mortgage paid for her. Going back is NOT an option!!

The house has been on the market for around 6 months, but with only 3 viewings in that time, I'm going to be paying this sum indefinitely until she finally accepts an offer.

I have tried reasoning an offer for her share of the house based on the proceeds of a third party buying the house, but she won't budge leading me to believe that she will just stay in the house for as long as she wants whilst muggins pays half of the mortgage.

I need to be able to live too, and the blame is hers on the divorce so, what happens if I just stop paying my half of the mortgage?



Thanks in advance and I will answer any question as honestly as possible in order to get the best advise.

Thrugelmir

Have you consulted a solicitor?

Dreamer0

To begin with yes, but not over this issue. I'm not sure they could best advise as this cause of action may be seen as a little unethical?

However, my solicitor did advise me strongly from the start, not to move out. How I wish I'd listened to her!!

Senior_Paper_Monitor

Your solictor was 100% correct - first rule.

Only move out if your health/safety is directly at risk and/or the police provide you a documented request to leave.

In many cases you can simply go back - have you considered (taken advice) on that ?

Thrugelmir

By being "unethical" the only persons life you are going to screw up is yours.

Make an appointment to see your solicitor.

Senior_Paper_Monitor

Ah - and your original question ..... you will trash both your credit ratings and as a result ....

1) You may not even be able to get a rental

2) she will be unable to remortgage, obtain another mortgage etc

Frankly this is a real no win - I am not sure I understand the 75:25 to her for a negative equity contract when she put real money in, but what you both need to do is face up to the situation and come up with a joint (business) plan - moving back in may force a more sensible negotiation.

marsbar989

i default on a mortgage in August 2008 as a result of a divorce and she not agreeing to sell the FMH. The housing market was falling and mortgage company *MAY* give more time, but in my case after 8 months a trip to court and the house was repossessed.

Fortunately it sold for a profit. Although a lot less than it was worth 18 months early when i moved out!


whats happen since ?

Well i got the rental on my 1st place as it wasnt on my credit record. Nor my 2nd as this was still before the default. In June 09 checking the one credit reference agent and it still wasnt there. I confessed the the rental Co about it though and they were not interested.
Its on there now and this may cause a problem when this rental ends in May 2012.

as for mortages.... I can put down a 40% deposit on a place. My bank and the well known building societies are not interested in me. One quoted 6 years before getting a mortgage.

so June 2014 before I can get a mortgage.......

I had to move out as she called the police saying a hit her. 7 times in 3 weeks! Off topic but i would point out that the kids live with me as pointed by the court and social services. They saw what she was for....

Dreamer0

Senior_Paper_Monitor wrote: »

Ah - and your original question ..... you will trash both your credit ratings and as a result ....

1) You may not even be able to get a rental

2) she will be unable to remortgage, obtain another mortgage etc

Frankly this is a real no win - I am not sure I understand the 75:25 to her for a negative equity contract when she put real money in, but what you both need to do is face up to the situation and come up with a joint (business) plan - moving back in may force a more sensible negotiation.

The house is not in negative equity, there is around £15k equity even if the house sells at my minimum. I have offered her above my minimum for the house but she doesn't want to know.

Thanks for all of your replies btw.

Moving back in is not an option. The turning point of the marriage was her pushing and shoving me in front of my kids and I will not allow that to happen again.

I am at a loss here. It seems that the fault is hers in the marriage yet she comes up smelling of roses as far as the house is concerned and I'm forced to impose on friends to kip on their floor and have no chance of moving on with my life. It's incredible.