In a terrible mortgage situation, please help

lemonjelli

Mary and my H are co-mortgagees but Adam (Mary's partner) isn't on the mortgage. However he still got 3k cash and is now the one claiming he has been paying the bills since my H moved out

pineapple123

This story was only ever going to turn out bad, H walked out on the deal after a few years which was floored from the start.
Umm No win situation for anyone. As I see it what your proposing Mary and Adam lose their home but come away with no debt, H ends up paying but hasnt paid up his share for the last few years which may have caused them to be in this situation now.

Adam is peeved, he knows their is no equity they have made nothing and will lose their home, feels hes owed a little back, he'd be lucky to leave this deal with no debt and no poor credit rating and Id strongly remind him of this.

John1993_2

lemonjelli wrote: »

This is just a terrible situation whatever happens. If things stay as they are then the house gets repo'd and H's credit goes up in smoke.

He'll also be liable for 100% of the shortfall between the selling price (net of fees) and the outstanding mortgage. The debt does not disappear when the house is reposessed.

IronWolf

The letting it out is one option but if that option doesnt work out then to me you have only one other option.

Sell the house, realise the loss and split the resulting loan between Mary and your husband. That way Mary is free to default on her loan with no more ties to your husband.

A 10k loan should be manageable for the two of you, no?

Also, why did they take out a 110% mortgage? What did they do with the money? Just spend it?

And as for this other guy expecting to get something back, I'd tell him where to go! Tell him to count himself lucky he hasnt come out of this with any debt.

IronWolf

Oh also, can they not get housing benefit if they cant afford to live in the house? Adam is technically renting from your husband, so may be entitled to it.