House Repossessed,no longer with partner,joint mortgage

yikes123

Hi

Roughly 8 years ago my partner and i had took out a joint mortgage for a property (put deposit of 25k, property was 140k which gave us a mortgage of 115k)

2 years later we split up,went to the bank to take my name off the mortgage,advised if i did that the bank would withdraw mortgage leaving my x partner homeless.At that point x partner verbally agreed to pay the mortgage,that was the way it was left,unfortunately a number of years passed,x partners circumstances changed,was unable to keep up the payments,advised to voluntary have the house repossessed.At that point she was advised total owed was 122k.Presently the house was repossessed,sold for 88k.

How do i stand legally?Would i be responsible for half the difference or full amount?What happens if i decide not to pay it as im not financially able to so?

silvercar

You are both responsible for the debt. At some point the lender will get in touch and want you to set up a repayment plan to pay off the amount owing. Expect it to be more than the difference between the outstanding amount and the sale price as they add on their costs.

Anecdotedly they do settle for a one off lump sum payment that is a surprisingly small percent of the outstanding amount, so if you are able to clear this that would be good. Otherwise it is a question of reaching an agreement on repayments or proving to them that you have no extra income to make payments. At the end of the day, if you have no money to pay them, they will have to live with that until such time as you are able to make a repayment.

It could effect your credit rating and the repossession would need to be declared if you ever tried to get a mortgage in the future.

They have 12 years to get this debt acknowledged, so they may leave you alone for a number of years to let you get back on your feet.

yikes123

Hi

Thanks for the advice,shall have a think about things,speak with my lawyer etc