Walking away from a mortgaged house?

DippyDog

In September 2010 I did a voluntary bankruptcy with my then husband. I was discharged in September 2011 however in December 2010 we purchased the house interest for £1.

Fast forward to now and my life has completely turned around - I have been divorced and have remarried - after years of unhappiness I have found my true soul mate (sorry if that sounds soppy!).

However one thing is hanging over me still - the house!

Without going into details my ex is still on the mortgage and house deeds and walked away without paying me a penny.

Before remarrying I had missed 3 months payments on the mortgage and was told I had missed the 3 year date for handing the house back without any penalties.

My new husband has been paying the mortgage but says he has had enough as it is just a huge money pit - he is planning to take me back to Scotland in early 2016.

The house will not sell as it is very large, mortgaged to the hilt and others on the estate have been up for sale for 2 years at less than I owe.

What are the ramifications if I just walk away?

KLou

The bank would repossess the house and sell it if you fail to maintain mortgage repayments after a certain length of time. Whatever it sells for - the bank would take this to pay back the mortgage. If the sale of the house doesn't pay the mortgage back in full - you (and you ex if he's named on the mortgage) would be liable for any shortfall so it's possible you would walk away from the house with an unsecured mortgage shortfall that would need to paid. Also worth considering if you're 'walking away', until the bank repossessed the house you would still be responsible for council tax and any other general costs.

ceo211

the bank would repossess the house and sell it if you fail to maintain

audigex

The important thing here is that if the house sells for less than you owe (and it sounds like it would), you will still owe the difference... you can't just hand them the house and say "See ya".

The bank also doesn't have as much reason as you to get a good price for the property, as they can chase you for the difference regardless. It may be better to sell for the best price you can get now, to minimise that loss yourself.

debt_doctor

Hi,


If you had the mortgage liability at the time you went bankrupt (and have not remortgaged since) then any shortfall from the sale of the property will automatically become part of your earlier bankruptcy.


DD

fermi

Yes, I would agree as long as you have not signed anything after your bankruptcy agreeing to be liable again. If not, it falls into your bankruptcy irrespective of time passed or who has paid what since.