Negative equity, repossession, quick sale and divorce

kate-eat

Hi,

I am in the family home with my 2 children and have been paying both the mortgages secured on the property for the past 2.5 years since my stbeh left. This has become increasingly difficult and I have now lost my job so is therefore currently impossible for me to do. Both of the mortgages have some arrears and court orders for repayment of the arrears and these have all been kept upto date until now. Due to my previous difficult dealings with the lenders I have engaged the CAB to help me with the negotiations and am waiting to hear back. So whilst I know repossession is likely to be on the cards soon I am not sure of exactly what will happen in the short term
Details of the debts below;

Current estimated market value of property £130k
1st mortgage - Mortgage Express £150k outstanding ex's name only
2nd mortgage - London Scottish £21k outstanding - joint names
Charging order - £20k approx ex's name only

My ex has been planning on going bankrupt for quite some time and was always under the impression that one of my relatives would stand a fair chance of being able to buy the property through the OR but I have been informed by the CAB that the property will probably not form a part of the bankruptcy as there is massive negative equity in it.

My question is ( I apologise for this being so long but I think it is relevant!) can we sell the property to avoid repossession proceedings or will the mortgage companies block the sale? If we can sell could one of my relatives buy the property so I can remain there with the kids? If so what sort of price would be considered a fair one; bearing in mind it would be a quick sale and there would be no estate agent fees to pay and how would the funds be divided by the interested parties??

Thanks in advance for any advice, Kate

DVardysShadow

Previous thread https://forums.moneysavingexpert.com/discussion/4068049

As I see it, any nice ways out of this involve recognising that a house worth £k130 has £k191 secured on it and addressing £k61 of debt before even beginning to get hold of the house.

I think the best you can do is forget about nice ways and think about the future. You have £k21 of debt in your name. When Soon To Become X goes bankrupt, you will be left with all of that debt. In your position, I would stop paying the mortgage and save that money - or whatever you can and face up to going into rented when a repo happens.

Let your relative buy the place on repo, if that can be done. You do know the lender and if STBx is cooperative the lender can be challenged if the Estate Agent shows signs of selling at mates rates and shutting your relative out.