Joint debt on secured loan

Beth_40

Guys !! I need your help !!

My ex partner and myself took out a joint loan, which is secured against HIS property.
We have since separated, and he agreed verbally to pay the loan.
When he continuously defaulted I applied to enter a restriction on his property as I had a beneficial interest (after paying the mortgage payments which totalled in £32,500 ).
The judge ruled in my favour and entered the restriction.
Part of the judgement was for him to actively try and remove my name from the joint loan and if he couldn't do that then he must continue to repay the loan in its entirety.
He has again defaulted and the loan company has sold the debt onto a debt recovery agency who have since contacted me to pay the loan.
Surely, if the debt was secured on the property then this is the avenue to go down?
Does the judgement now exclude me from any payment?
Although I paid the mortgage and the other household bills I have NEVER paid the loan and all the payments have gone out of my ex's bank account.

Unsure of my options ?

[Deleted User]

You're still (equally) obliged to pay the loan and will continue to take further hits on your credit file if you don't.

Beth_40

But surely as the loan is secured on the house, then if defaulted then the loan company should retrieve the money from there?

[Deleted User]

Yes, they can go that route if they want. But it's not a measure they will take lightly. They would much prefer that payments are made.

Beth_40

So that route is their option ?
And if I refuse to pay ?
I do not even know the t & c of the loan as he has all the paperwork. I'm trying to remember if I was asked to sign to 'boost' his income so the loan could be allowed.
I understood that I was liable as well. That's is why i pursued the matter of taking it to court to get a judgement.

fermi

You still have a technical liability to pay and they can chase you for missed payments, within reasonable bounds.

(they can't take legal action to force you to pay 'instalments' - all they can do legally is seek possession and sale to have the loan paid that way)

They can still record non payment, arrears etc on your credit file as you technically remain liable.

Obviously they will do both of the above before they take the route of formal legal action for possession.

Not only is that reasonable and in their interest to do so, if I recall there are FCA/FSA or such rules in place that insist they take all reasonable avenues before they take legal action.

It is frustrating for someone in your situation, as you would prefer to just be rid of it, but the other interests and rules in play cannot be disregarded or ignored.

In an ideal world if he is not going to pay or you cannot be removed from liability, the option would be for you two to agree to have the property sold and it paid off from proceeds, which I assume there would be enough to do.

In reality sounds as if you may have to just sit and wait, ignoring the loan company's pestering, until eventually things take their course and they take legal action for possession.

Beth_40

So , apart from my credit file being absolutely wrecked there's not much that the loan company can do? Is that what your saying ?
I dont live in the property anymore?
I do not have a joint mortgage, although I have had a restriction added onto the deeds.

fermi

Correct.

If both of you refuse to pay, the first LEGAL route the loan company must take is to seek possession of the property, have it sold, and take their money out of that.

Only after that if there was still a shortfall could they come after you personally in any legal sense. I'm assuming from your previous comments that any house sale would more than cover the mortgage and loan owed, so that is never going to happen.

Beth_40

Well, if he's being paying the mortgage !!
There was equity in the house when I left over two years ago so I presume it's still there.
He wouldn't have been able to get another loan due to his bad credit.
And since I have had the restriction added I have had no notification of any loan applications etc

MEM62

It may well be secured on the property but it is much easier for the finance company to come after you in the first instance. Going after the property will always be a last resort as it is expensive.


If payments have been missed on a regular basis your credit report may already have been negatively impacted.

Beth_40

I think my option will be to refuse to pay anything on the loan. I wanted to know the repercussions if I did this.
I am prepared for my credit to be completely wacked!!
Suppose I just need to cross my fingers and hope there's enough equity in the house to pay it off in full if not i know il be jointly liable for the shortfall.