Advice please

Lewigreg081281

Hi all,

After a bit of advice for someone.

Basically somebody we know has gone through a relationship breakup and had taken out a 100% mortgage about 6 years ago. Along with this there were also a loan added so at a guess I reckon they stood at 110%. I know not the best thing to do.

Basically the couple have split up and there is now a tricky situation. I've been told the house has dropped about 10k over the years so whatever equity there was has been eaten up by the loan that was added. I'd say they were around 10k in negative equity.

The guy involved has moved back home and is paying half the mortgage and the girl is paying the other half plus bills. It was agreed that he'd move back home to give some space as they'd 'grown apart' it's now turned out she'd been seeing someone else for a number of years. She's played a clever game really and has ended up with the house with half the mortgage still being paid.

The guy had a horrible year last year but is now focused to get something sorted. The mortgage was with Northern Rock and apparently is now with NRam - not sure what they do.

We've said we'll try and help him out with any communication with the bank as he is down with it all. Obviously with the 10k negative equity it's going to be tricky.

If it was me I'd be going kicking her straight out of the house.

Would there be any help for him? Or could the hous be sold and the negative equity split between them both?

The other option I suggested was to try and see if they could rent it they may well get less than the mortgage monthly cost but he'd be better off than he is now. I've also suggested selling all the contents of the house as at the mo she has everything.

It's a tough situation that I don't envy.

Thanks

Dave_Ham

Hi, there are a truck load of considerations here and the most important one is to try and keep this amicable as otherwise the costs will outweigh the potential upside.

He needs to firstly call NRAM or hunt down the paperwork and see how much of the balance is secured and how much unsecured. It may be that the secured amount is less than the market value of the property.

If this is the case, the perceived lost can be repaid at a higher rate on an unsecured basis albeit jointly.

He will then have to tell his Ex that they need to sell the property and will require her acceptance, as otherwise a costly legal process is to be followed.

From a mortgage and credit file perspective they are jointly responsible for this debt.

All the best

kingstreet

What Dave said.

NRAM (Northern Rock Asset Management) is the Government firm tasked with running down the NR and Mortgage Express "bad mortgage/loan book" and recovering as much money as possible for the taxpayer.

Lewigreg081281

Thanks for the quick replies.

I've tracked down the number for NRam and I'll get him to give them a call.

I don't know how but he is keeping it amicable. If it was me it would be a different story.