Negative equity, other party wants of the mortage

getmore4less

As the mortgage is interest only you don't have a problem as such.

Just think of it as renting the place.

do not overpay the mortgage but save if/when you can.
Do not create any equity that may have to be shared in the future.
untill the place gets back to the mortgage amount this will not be a problem.

Continue to review getting the other party off the mortgage.
over time wither between you and the friend you can raise enough money or the value will go up enough to let it happen.

Idealy the friend can raise funds and you benifit from that.


I think the threat of forced sale is going to be just talk for now.

keep cool and say we are trying but untill the mortgage company agree there is nothing we can do.

Radiantsoul

squeeks wrote: »

If you ex-friend is considering going bankrupt due to other debts, remember that the house may get repro'd to settle some or all of his debts. .

Unlikely as whoever tried to sell would need to repay the first mortgage, and then any remaining equity(which is currently negative) would go halfly to the OP.
In fact the ex-friends bankruptcy would be the best result if there is no equity. The trustee would offer the value of the property for sale at a nominal fee. The OP's partner could then acquire this interest.