friends sticky divorce problems

sharnad

She will probably get Half of the house.

Brewstersmum

Thanks for the replies, I've shown my friend the thread and she's feeling a but less worried

What would happen. If her OH just stopped paying the mortgage? She says its in negative equity and its just a burden in their finances as no one lives there anyway and no one wants to

Brewstersmum

Sorry for mistakes, I'm replying on phone lol

neneromanova

The fact the house is in Negative Equity makes a big difference.

RAS

Hi

Have either of them asked the mortgage provider to accept interest only payments or a payment holiday?

Has the BF taken any legal advice, as he needs it.

19lottie82

Brewstersmum wrote: »

What would happen. If her OH just stopped paying the mortgage? She says its in negative equity and its just a burden in their finances as no one lives there anyway and no one wants to

OK, now [EMAIL="I@m"]I'm[/EMAIL] confused. Why all this chat about who gets what of the house, if it is in his name and in negative equity? All she would get is she took him to court for it would be half of the debt! There is no need for him to "pay her off" as you mentioned in the OP. Well, not in regards to the house anyway, I don't know if they have any other assets.

Eventually, it would be repossessed. Then sold at auction, for way less than the market value. He would also be liable for the full value of the outstanding mortgage + auction / legal fees minus what the house was sold for.

His credit record would be shot to bits. And he would be unable to get ANY further credit for a VERY long time.
Or buy or rent another house.

Not wise with a child coming along.

jellie

Brewstersmum wrote: »

Thanks for the replies, I've shown my friend the thread and she's feeling a but less worried

What would happen. If her OH just stopped paying the mortgage? She says its in negative equity and its just a burden in their finances as no one lives there anyway and no one wants to

I'm confused. In your original post you said the ex was after half of the property, but now that it's in negative equity. So there's nothing for the ex to have?

If he stopped paying the mortgage, it would get repossessed and the mortgage company would come after him for the shortfall once it had been sold. Could your friend move into the house, until it's out of negative equity and can be sold without a loss? Or just sell the house now - he might get more for it than the mortgage company will.

If repossessed, his credit records will be shot to pieces for 6 years.

19lottie82

jellie wrote: »

Could your friend move into the house, until it's out of negative equity and can be sold without a loss? Or just sell the house now - he might get more for it than the mortgage company will.

I agree.

Sensible options would be......

1) Your friend and OH move into the house and give up her rented flat. Over pay the mortgage as much as possible to try and get out of the NE, then sell.

2) Sell the property now and come to some arrangement with the lender, or get a loan, to pay off the outstanding debt.

Stopping paying the mortgage is a bad idea, and will cause many problems for years to come.

Brewstersmum

ok so this is the upshot,

she says the house is in 4k equity based on the actual value. the x thinks the value is 20k more due to local house prices but the house is in bad condition so that's obviously why she is fighting.

my friends OH said that after the shocking legal bills of 1k he has already paid out that have got him nowhere, what's the point of fighting over nothing. he wont get anything and neither will she as it will all be swallowed up by solicitor costs at this rate. he says that since the ex left a year ago he has paid over 1k back on the mortgage thus increasing the equity. I can see his point, its like flogging a dead horse I guess.

they want to move away before baby comes to start afresh but cant do it with the house hanging over him.

sorry for the earlier confusion

im just glad my own divorce was easy lol

RAS

OH needs to go to wikidivorce for on-line help.

Has he actually started divorce proceedings? He does not need a lawyer to do this just to fill in the forms and pay the fees.

I would recommend the solicitor for the consent order.

His best option may well be offer the ex the house in exchange for taking on the mortgage. That way he is shot of it and she can take any equity that does really exist, so they both win. She might get a bit more realistic in that case.

Do they have the house on the market?