Help : Should I Stop Paying Mortgage?

ChefBungle

Hi Folks,

Looking for a bit of advice here as I really feel like i'm in an impossible situation.

My ex-wife and I split up a few years ago, initially I moved out of the family home and then about a year later she did the same so she could be closer to her family. As a result, the house has been empty for the last 2 years.

Last winter (18 months ago) the house suffered some frozen pipes after the central heating system failed and there was a significant flood which caused a fair bit of damage. Since then, dry rot has set in to the areas affected, despite my best efforts to dry it out.

The latest valuation of the house is £120k but the latest structural survey carried out says it needs around £15k worth of work to make it habitable. There is approx £114,500 outstanding on the mortgage.

We had an offer on the house last week for £103k by the person who had the structural survey done, but my ex-wife refuses to pay anything towards the mortgage shortfall and I can't afford to pick up the tab for the whole amount (roughly £12k plus/minus various fees).

As a result of this, it looks like the offer is going to have to be declined. Neither of us are in a financial position to pay for repairs to the house, and neither of us are in a position to live in it (now too far from our respective jobs, schools, etc).

She refuses to rent it out, her attitude is that she wants rid of it asap. I suggested renting as a sensible solution in the short-term, as it seems crazy leaving it empty all the time and paying money essentially for nothing. Mortgage is currently 1.5 months in arrears as she has failed to keep up with her share of the mortgage for the last few months.

So my question is : what would happen if I just stopped paying my share of the mortgage? I'm guessing :

* bank would repossess house.
* house would get sold at auction.
* bank would come chasing for the difference between sale price and outstanding mortgage.
* I would then make myself bankrupt as could not afford to pay remainder.
* Bank would then chase ex-wife as we are jointly/severly liable.
* She might have to declare herself bankrupt as well.

I don't own anything of value, I have a 2006 Focus which is probably worth £2k, but I need that for travelling/to from work. I have no other assets, capital or property, so would they actually pursue me for the debt and/or apply to make me bankrupt? Or would they just write it off on the basis they're unlikely to see any of their money again.

I'm well aware the impact bankruptcy will have on me, but I can't see any other solution to this problem.

If I don't do this, then we'll both still be paying the mortgage each month and the property will simply continue to deteriorate as the dry rot gets worse and spreads, or something else happens to the house.

We're in Scotland (just in case that changes any of the advice given).

Thanks,
Chef

ACG

You are both jointly liable for the repayments.

If she doesnt contribute you have to pay it all otherwise its going to affect both of your credit files.

You need to take her to court if she is playing silly games to force the repayments on her half of the house.

paulmapp8306

Tell her if she wants shut of it - she has to take the offer price. its only worth £130k minus the repair work so she wont get what she wants - thats simple maths.

Either sell it and make up the difference, or dont - get it repossessed and have to fork out more. thats the stark choice she has.

ChefBungle

paulmapp8306 wrote: »

Tell her if she wants shut of it - she has to take the offer price. its only worth £130k minus the repair work so she wont get what she wants - thats simple maths.

Either sell it and make up the difference, or dont - get it repossessed and have to fork out more. thats the stark choice she has.

If it does get repossessed, and I can't afford to pay anything further, what happens then?

Thrugelmir

Hand the keys back to the lender. Ask for voluntary repossession.
Deal with matters from there.

I'm in no way suggesting the next few years will be easy. But relieve yourself of the stress and worry. Break the elastic than connects you to the past and move on with your life.

Bankruptcy is no disgrace. Its how you handle yourself that matters
.

paulmapp8306

ChefBungle wrote: »

If it does get repossessed, and I can't afford to pay anything further, what happens then?

it will go on your credit files (both you and your ex's)as a default, and they will try to get the difference between outstanding and sale price from you and your ex.

If you have nothing tangiable, and you ex does - then they will go after her initially. Ultimately it may mean CCJs for both of you was well - which will be set at what you can afford. Potentially if you ex has twice the income you do - here payments may well be higher than yours. She will have no say in that though - and those payments will be "her" debt at that point not joint. You will have your own debt to deal with.

star4876

im not suggesting this is ideal by any means but if it helps you move on would you consider taking on or increasing a loan for the 12k shortfall? you need to make sure you keep up those mortgage repayments though because if you miss a few you might not be in a position to apply for anything.

do you have a relative who would be willing to go through a re application with you on the mortgage? assuming you are not in a financial position to take it on alone. that would potentially relieve your ex of the responsibility and allow you to rent it out for a few years and recoup some of your loss, or make whatever decision you want.

just 'not paying' is never the answer. you will end up in more debt than necessary and will trash your credit rating, that'll hang over you like a black cloud for years to come - house or no house.