Divorce and BR (mortgage issues....) HELP Please

tech2_2

Hi All

Dont know if any one can help on her but worth a try.

My wife and I are going through divorce and I have kept the house as arranged, unfortunalty due to the BR I am unabke to take her off even though it has been 3 years now with 3 still to go.

The mortgage company dont seem to understand that has the property was included in the BR that they will never be able to put a claim against either of us as we can just hand the keys in. Yes it will cause some trouble but all I want them todo is to remove her from the mortgage.

I spoke with their legal team over a year agao and they dont seem to have an angle on wat the BR actually means to them and that they can make no claim to either of us so taking her off makes no difference..

Can anyone shed any light on this or to any info on the net I can guide them too...

Thanks

Tech 2

Anondebtadvisor

You are right that if you surrender the property and shortfall will go into the bankruptcy but to remove her from the mortgage you will need to refinance the mortgage.

They will not just remove her from the mortgage, unless you can remortgage in your own name and your circumstances allow

alastairq

Hi....you make mention of a bankruptcy?

Did both you and your ex petition BR, or was it just one of you?


You also mention the 'property was included in the BR?'

In itself, this cannot be so.......as the property is/was an asset.....and any finance secured on that property [mortgage, for example] is secured debt, therefore not covered by a bankruptcy


Where the confusion lies concerns any shortfall of equity once a property has been re-possessed and disposed of.

This shortfall then becomes unsecured, thus falling into a BR.

However, unless both parties have petitioned BR individually [the only way, BTW]....then the mortgagor will pursue the non-BR'd party for the full shortfall.


Which is what Is suspect you wish to avoid?

However, by re-mortgaging the property to remove ex-s name, effectively the original mortgage is terminated, and a new one started.

Since the BR will now pre-date the new secured loan...if subsequent re-possession or sale occurs, and shortfall of equity arises, this will not be included in any BR.


Of course, if both of you have already petitioned BR, then the mortgagor cannot pursue either for any shortfall subsequently arising...providing the original mortgage is not changed in any way...[AFAIK].

Again, to remove ex's name, a new mortgage is taken out...with the provisos mentioned above regarding any subsequent shortfall.

Can you not leave things as they are for now?

tech2_2

We both went BR in 2010 now been 3 yrs. We split end of 2010 and gone the 2yrs. she is prepaired to give me 4 yrs to short it but her solicitor has out a ntocie to sell on in the D papers, so if I can not get her off the Motgage than she can force the sale in 4 yrs time.

It is ammicable, just i dont like the force of the sale if i cannot buy her out or remove her name...

We agreed she keeps the her very good pension and me the house, but there is no regress for me against her pension if she forces the sale of the house....

The house was out in the BR and we wbought back the right for the £99 sum and that was done in my name because of the spilt.

Not sure what to do, the other option her solicitor has come up with is to wait till our child is 18 so that 10yrs down the line..

I have not used a solicitor as i can not afford one yet dont fall into the legal aid bracket...


SO what do I do???? Mortgage with the Halfax...

Tech2

antrobus

tech2 wrote: »

We both went BR in 2010 now been 3 yrs.

Well that answers that particular question.

tech2 wrote: »

We agreed she keeps the her very good pension and me the house, but there is no regress for me against her pension if she forces the sale of the house....

She gets to keep a "very good pension" and you get a house that is in negative equity? Seems a very one sided deal.
.

tech2 wrote: »

...SO what do I do???? Mortgage with the Halfax...

The Halifax is not a party to your divorce. You can't force them to do anything as regards the 'former matrimonial home'.

If your divorce hasn't been finalised yet, I'd get some proper legal advice (and afford it somehow).

tech2_2

Thatas great thanks for that

I know it seems one sided but thats what we agreed I do have a pension yet its 1/3 of the value of hers.

It looks like a trip to the solicitors then.... :beer:

Thanks