not complying with court order - mortgage

bewilderedhelpneeded

My friend is nearly divorced and financial stuff done in court. Court ordered sale of fmh and my friend agreed that his ex could change mortgage to interest only. This was all written on court order. House is now on the market. My friends ex pays mortgage and has done for last 3 years as she lives in property while my friend rents.

My friend has just received a letter from mortgage company regarding mortgage payments. It appears his ex has contacted mortgage company and made an arrangement to pay with them - the monthly payments dont even cover the interest on the mortgage. Is there anything my friend can do as debt is building up on the mortgage because of this which affects his credit rating and equity. Court order clearly states his ex should be paying the interest ie switch mortgage to interest only until property sold. My friend contributing towards mortgage is not an option - his rental payments are more than the repayment mortgage was and he is struggling as it is financially.

poppy10_2

bewilderedhelpneeded wrote: »

Court order clearly states his ex should be paying the interest

Really? That would be an unusual court order to make

bewilderedhelpneeded

Ive seen the court order and it states that the fmh is to be sold and the mortgage changed to interest only until sold. Then the equity split after debt and bills paid off.

Thrugelmir

The Court Order does not remove the joint liability for the mortgage. If the ex cannot afford the repayments then difficult to see what options exist.

Is there equity in the property?

poppy10_2

bewilderedhelpneeded wrote: »

Ive seen the court order and it states that the fmh is to be sold and the mortgage changed to interest only until sold.

Yes, but does the court order say that only the ex has to pay the interest? It would be rare for a court to make that sort of decision - they both took on liability to pay the mortgage when they took it out.

bewilderedhelpneeded

Yes there is equity in the property. Ive seen the court order and it says something like ' the fmh is to be sold and the equity split after fees and debts have been paid. X is to continue to pay the mortgage on an interest only basis' not the exact wording but along those lines. Ill ask if I can see court order again and get exact wording.

Thrugelmir

As there's equity. Then if the ex allows arrears to build. Only fair that these are deducted from their share of the net proceeds.

Let_Us_See

bewilderedhelpneeded wrote: »

.....and my friend agreed that his ex could change mortgage to interest only. This was all written on court order.

Court order clearly states his ex should be paying the interest ie switch mortgage to interest only until property sold.

Obviously, some confusion here! Firstly, you state your friend agreed to interest only (not court imposed), followed by the "court order clearly states" etc. All this refers to is the husband's willingness to allow the mortgage to change to interest only, and whilst written into an agreement, it does not appear to be "court ordered."

Secondly, it will need the permission of the lender to change the repayment method and the husband so-called agreement to allow change to interest only is worthless - court ordered or not.

Thirdly, as party to the mortgage the husband still retains full and joint responsibility and will do so until released by the lender. With the mortgage apparently in arrears this is unlikely to happen.

Suggests he finds a cheaper property to rent until the house is sold and the finances settled.