Partners walks out leaving me with £1000 mortgage!!repossession or bankrupcy??

ruggedtoast

RAS wrote: »

If you go BR and she does not, they will chase her for the shortfall.

And if she has to go BR, then the fact that the house is not in her name may not protect the house in which she is living; the OR could decide that she has a beneficial interest anyway.

She probably isnt as safe as she thinks she is. The whole thing is ridiculous, neither of them need to go bankrupt. Would be interesting to hear her side as well.

GDB2222

charly007 wrote: »

Ok more news, just found out she is not ont he title deeds of her new house and car. As she is married will this effect her partners assets? I was on the understanding they were in joint names but they are not!

Now she earns hardly anything and they will come after my good salary!!

Now bankrupcy does no longer seems very appealing!!

Actually, you are being inconsistent here. Previously, you said that the main reason you were concerned about going bankrupt was that it might cause problems over the housing arrangements for your child. Now, you can be happy that that won't be a problem.

So, now, you know that the position is that either you pay the full cost of the house yourself, with your ex- putting her oar in from time to time, eg stopping you renting it out or selling it, or you go bankrupt. If you do go bankrupt, your wife would be wise to do the same, as otherwise they'll come for her, too, but that's her business.

If, by a miracle you do pay everything and eventually the house is sold at a profit, your ex is entitled to half.

It looks like a no-brainer to me.

RAS

Or you could try and get a forced sale, but that might be difficult to enforce in the current market and would cost a fair bit in legal fees.

charly007

A quick update as promised, we found someone to rent. Then an offer came along, so we pulled out on the renting and proceeded with the sale which is still going through. The ex took over the negotiations on the sale. We agreed a lower amount than house value which means still in neg equity and works out 20k in debt. I have had to write to the mortgage company and make an statement announcing how I will pay half the debt back. So we shall see what happens. Can they still go ahead with a repossession?

pinkshoes

It's unlikely they'll repossess if a sale is in progress. Just make sure you let them know how far advanced the sale is.

zzzLazyDaisy

charly007 wrote: »

I have had to write to the mortgage company and make an statement announcing how I will pay half the debt back.

Just to say, this bit doesn't make sense. If the house is in negative equity, it isn't a case of you paying half and then them chasing her for the other half.

Both of you equally owe the full amount and the lender can chase either party. So paying half won't free you from liability for the rest unless the lender agrees to accept half the debt in full and final settlement.

Or have I misunderstood? (I haven't read the full thread, so apologies if I have missed something)

charly007

An update, Since last posted I have sold the house and its still going through. The latest is the mortgage company have agreeed in principal for us to pay the outstanding 16k debt once the sale goes through. I have to pay £250 per month , the 4000 in estate agent costs and fee and they would not tell me what my ex would be paying. I am awaiting the letter informing me of how long this unsecured loan has to be paid for and explaining to me about the interest.

We both have to sign it infront of a solicitor. I am kind of happy as i guess this was always going to be the best out come and not bankrupcy or repo.

just wanted to keep you all in the loop.

Yorkie1

Thanks for the update, good luck for the future.

GDB2222

I suppose that ending up in debt for £20k is definitely a better outcome than bankruptcy? Assume that your ex- will pay nothing towards it.

Emmzi

Good luck and thanks for the update!

£250 a month at what rate and for how long is an important question.