ex wife looking at giving house back to mortgage company

dannyhoy

Hi all i hope someone can help or give advice

me and my wife split last may 2012 we agreed i would move out get my own place and she would stay in the house. upto know she has been covering all house costs ive been paying money for our little girl and renting my own place.

my ex has now been saying she cant pay for the house anymore and want to sell, she hasnt managed to sell and as there isnt really any equity has now got the bright idea of giving it back voluntary reposession........i have read that this is not a good option as its most likely the mortgage company will sell it for a lot less and we then own the excess!!!! she wont listen to me now at all and says she will go ahead. of course she needs my signature and i want advice before i make a decision.......are there better options we have other debts and i am struggling to pay them as it is i cant afford to pay more

any help is appreciated

Old_Git

she cant sell without your agreement but she can hand the keys back . Not sure what the lender would do without your agreement .
Is the mortgage in arrears
where will she and your daughter live .

If she moves out can you move back in .

GillyR-J

Hi,
Obviously your main concern is your daughter. Are you in a position to swap with your ex-wife and you move back into the house and she moves into rented(which I assume is what she will do anyway)?
If your signature is needed it is obviously in both names,so I would seek legal advice to ensure you have covered every option.

Thrugelmir

dannyhoy wrote: »

i have read that this is not a good option as its most likely the mortgage company will sell it for a lot less and we then own the excess!!!!

The mortgage company has a duty to realise as much as possible for the property. Hence why properties are sold at auction or follow a highest bid process.

Any excess when the property is sold above the debt owed is repaid to the mortgagees.

If neither you or your ex can afford the property. Then voluntary repossession is cheaper than a forced one through the courts. As this will incur considerable sum in costs. Which will become your liability.

dannyhoy

thanks for all replies i did think about movingback but the house also has a secured loan on it which if i did i would be soley responsible for it...i couldnt afford it. my ex asked them to switch it to int only to manage better but NRAM would not do that. i just dont want them to sell the house at a big loss and we would be left with loads more debts.... balance of mortg is 87000 house was valued between 95 to 100 2 months ago...

Caz3121

dannyhoy wrote: »

balance of mortg is 87000 house was valued between 95 to 100 2 months ago...

how much is it currently on the market for?
maybe think of puting it in auction

Gary123456790

Giving it up for repossession voluntarily is a bad idea. The mortgage company will sell it just as you can, but they will add on all costs related to selling it to your mortgage, i.e. you will end up owing a lot more.

From the figures you gave there looks to be a little equity but is that not considering the secured loan?

Much better to sell it yourself quickly. You might have to reduce the price but you are losing money every month in interest so the quicker the better. If it gets repossessed it is likely to ruin your credit rating.

Gary.

poppy10_2

Thrugelmir wrote: »

Any excess when the property is sold above the debt owed is repaid to the mortgagees.

I think it's repaid to the mortgagors - the mortgagees are the lenders.

dannyhoy

sorry poppy what do you mean?

Thrugelmir

poppy10 wrote: »

I think it's repair to the mortgagors - the mortgagees are the lenders.

My mistake.

Thrugelmir

Gary123456790 wrote: »

Much better to sell it yourself quickly. .

Without coming to an agreement with the lender regarding the shortfall. Then not possible to complete the sale transaction.