voluntary possession advice please

jodiejojo

HI everyone
I own a property in the joint names of myself and my ex husband. We have just given it back voluntarily to HSBC after failing to sell it ourselves. Its been on the market for a year and we have reduced the price continually and even placed it in auction but to no avail. The last price we had was £250k. HSBC have now valued it at £175k (which we are disputing as too low) but my real question is this - there are 4 mortgages on the property, the first 3 are in mine and my ex husbands name and come to about £145k , the 4th one is in my ex husbands name and his brothers name (not mine). Am I right in thinking then that after the first 3 mortgages are redeemed upon sale the remaining money must be divided between me and my ex - he will obviously have to put his towards the 4th loan and they can go after him and his brother for the shortfall but they will have to give me my share and cannot come after me for the shortfall? any advice gratefully received thank you

jodiejojo

forgot to say the 4th loan is around £60k

hamster2013

if the mortgage they took is backed by property - the lender gets first right over you
you must have signed something as your name was on deed when he secured the loan on the property

check the paperwork

jodiejojo

yes i have asked the bank if i signed a Deed of Postponement as I can't recall. If I did then they will be able to take my share I assume but they wont be able to come after me for the shortfall? is that right?

holly_hobby

When the property is sold, the conveyencer upon reciept of the monies will repay the secured loans in their order of registration ie ...

1st chargee gets first dibs
any residual capital
2nd chargee is discharged
any residual capital
3rd chargee is discharged
any residual capital
4th chargee is discharged

The mortgagee (lender) may pursue all mortgagors for upto 12 yrs for a mge shortfall - unless you come to a full and final settlement with them.

Any unpaid secured loans may also pursue all borrowers - again unless a full and final is settled.

You cant just walk away from any os debt - unless you go bankrupt.

Hope this helps

Holly

jodiejojo

Thank you holly. I still dont quite understand whether that means they can go after me for the shortfall on the 4th charge? The loan isn't in my name

holly_hobby

Only loans in your name, or where you have stood as guarantor, may be lawfully pursued.

Hope this helps

Holly x

jodiejojo

Brilliant, thanks so much Holly x