Is BR/Voluntary Repo an option for me?

alba73

I am in an increasingly difficult position which I can only see getting much worse - may I ask forum users if they believe BR/Voluntary Repo is an option for me?

My situation is:
- Joint mortgage holder with ex-wife
- Living in the house alone for 3 yrs since ex-wife left, I am paying interest only, -ve equity.
- Ex-wife now engaged solicitors in an attempt to bully me into selling the house (on the open market) at a loss with no indication of how much ex-wife is prepared to contribute to shortfall.
- The house is in my ex's home town miles away from my family. My parents are sick and elderly and I would like to start renting a flat near them. I have no desire to stay in this property.
- I have so far been able to keep up payments comfortably so far but will not be able to if I rent another property to be near my parents.
- Letting the property is not an option as the market rate for rent would not cover the mortgage repayments and I have had VERY BAD experience of letting previously.

Is BR/Voluntary Repo an option for me? It is not an option I would take lightly.

Ineedaname

How much negative equity is there and how much do you owe in unsecured debts?

You might like to read the Look Here First sticky and contact one of the free debt advice charities listed there. They'll be able to go through all your finances with you and suggest the best course of action for your particular situation.

alba73

Thanks INAN

The -ve equity is around £30,000. I base this on the mortgage minus the value likely to be achieved in a sale. I am on top of my other debts in general.

If my ex-wife agrees to pay her share, I would have £15,000 debt which I could just about take on but I am coming to the conlusion my ex-wife will never take responsibilty and I may be saddled with the full shortfall if I am ever to leave the property - that figure would be unmanageable.

Thanks for the links, I am currently beginning my research.

Cheers

Ineedaname

You'd have hoped the ex-wife's solicitors would have advised her against pushing for a sale at this time, but maybe her intention is to cause you financial strife and not to take responsibility for any of the shortfall. As long as the mortgage lender has one party to chase for the money they are less likely to contact the other.

I guess one choice would be to surrender the property and go BR which would mean your ex-wife would be chased for the entire shortfall as you would no longer be liable, although you may be subject to an IPA which would mean some money may go towards the debt after OR fees have been covered.

Emerald11

Oh poor you what a horrid situation to be in. Would your wife and her new fiance not consider buying your share of the property at the market valuation? That was they get to live in her home town and can sell when the market improves and you get your freedom. Alternatively there's no harm in putting it on the market - you don't have to make it attractive to buyers - not many people will be looking before the spring but dirty dishes in the sink - unmade beds and overflowing washing baskets would be enough to put me off - just a suggestion. Why should you lose your credit rating to accomodate her?

alba73

Thanks for the advice. I think the reality is that there is no "easy answer" to my problem. From what I have read on this forum, BR can be very liberating but extremely stressful during the process. I sense I have tough times ahead.