repossession debt repayment Lloyds TSB, help please!!

Liverpool81

Was wondering if anyone can please give me some direction with Lloyds TSB (c&g mortgage)in relation to my mortgage shortfall debt.

Long story but will try to be brief....Had a house with ex purchased joint mortgage in 2004 (£77k), moved out 2006. He wanted to keep house and completely refused to co-operate with any kind of sale/legal communication or taking on the mortgage himself.

Meanwhile I have lived in own flat (renting). House was threatened with repossession 2ce before (but they allowed him to make on his own repayment plans for the arrears). Ex finally totally stopped paying mortgage about 16 months ago and its now been re-possessed. No contact whatsoever from ex with mortgage company - he basically has no way of being contacted.

Final debt is £19,300 and they have no contact with/from or address for him, so obviously pursuing me. I have been sent a letter advising that I offer a lump sum towards debt and they will accept and that will end my liability towards the property, but they want me to also povide an income and expenditure form (when i asked over phone about this they will calculate what they feel i can afford to pay per month, and then want me to re-offer a lump sum in a few years, not going to do this as will end up paying back alot more than lump sum and not free of the debt/liability).

am planning on offering £2k as a loan from parents, have no savings/assets etc to draw and since ex has had house in arrears for so long was never able to get any credit. Other option would consider bankruptcy and they will get nothing.

dont want to have a re-payment plan or IVA anything based on my earnings, as want to be able to get better paid job or increase work hours without having to pay more back - just wouldnt be worth it.

Does anyone have advice on this?? am reluctant to have to pay anything as its all his debt, while i have been paying my own way, and he is just walking away from it all.

Should I simply give a lump sum offer and/or complete the income/expenditure form???

Any advice would be welcomed,

Thanks in advance

betmunch

you are both jointly and fully liable for the whole debt. As you have found if the cant find him they will chase you for it. Make sure that anything you offer will release you fully from your responsibility towards the shortfall. Also, if you know where the ex is you can tell the mortgage company so they can try to get more money back off him.

Liverpool81

Thanks betmunch,

Yes i will make sure if they accept that i am fully released from the shortfall responsibility, if they accept my offer.

in your experience, is this offer realistic? and does this income/expenditure form have to be completed before they will agree to the offer?

havent a clue where the ex is (also being chased for his council tax now too)

Cheers

Thrugelmir

If you don't comply with the lenders request they'll merely apply through the courts.

Not sure why your ex's arrears have anything to with your lack of savings.

As a starting point 50% of the debt over an extended period is what they might seek. So offer £5 - £6k as final settlement as a lump sum payment.

Not worth trashing your own credit record. As may even affect your ability to rent in the future.

betmunch

unfortunately, or fortunately depending on your point of view, my "experience" of this situation is non-existent! All I know is that you are both responsible for the whole amount and common sense dictates that the lender will go after the easier target!

Liverpool81

Cheers for the advice Thrugelmir,

Dont think i explained it well - my ex's arrears have meant im unable to obtain any credit to use (as my credit score is so low) as an offer towards repayment, the lack of savings are down to me.

Mentioned savings as if they want to see what i have got to try an put towards the shortfall or whatever, i havent got anything.

Thrugelmir

They'll accept £75 a month for 30 years if necessary.

A lump sum is the best way forward. Lenders are flexible when negotiating. So they'll be reasonable.

Morgage_Confused

Whats happened to the property.
Whats happened to the equity in the property.
Is the debt of £19,300 after any potential sale of the property?
I dont know much about the housing market in Liverpool? but have house prices dropped that far since 2004?

opinions4u

am reluctant to have to pay anything as its all his debt

my ex's arrears have meant im unable to obtain any credit

For the benefit of others reading this thread who are in a similar position, the debt and the arrears are as much yours as they are those of your ex.

Joint mortgage. Joint arrears. Joint shortfall.

Nobody should think it's any different.

Make sure any communication from the lender absolves you of any future liability for the debt. And keep that letter safely!

SouthCoast

Information from Natioal Debtline about negotiating payment of mortgage shortfalls

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls#chapter9

Liverpool81

Morgage_Confused wrote: »

Whats happened to the property.
Whats happened to the equity in the property.
Is the debt of £19,300 after any potential sale of the property?
I dont know much about the housing market in Liverpool? but have house prices dropped that far since 2004?

Hi Mortgage Confused,

property was repossessed and sold at a loss (paid £77k sold for £55).

no equity as once i had left his repayments were so sporadic then no payments at all.