Complicated advice needed

Hayley_grieve

We have a few issues with my partners house we are trying to sell.

1st problem - ocelot are the mortgage company who don't seem to want to help! The property is negative in equity for roughly 10/15k. We have asked them what options there are but ocelot are offering us none at all, they have even dismissed our suggestions.
2nd problem - my partners ex is still on the mortgage but she declared herself bankrupt When they split and she left 7 years ago. There is a charge on the property from the insolvency service but this should only come into play if the property is in positive equity. Ocelot won't let us remove the exs name as they don't seem to do anything apart from collect the monthly payment, the mortgage book has been sold several times since it was taken out.

We have currently just found out that I am expecting a baby August this year so we are in need of some action as the property we are in is too small.. We have been saving for a new property and have the deposit to buy. This situation is now holding us up and we don't know where else to get advice from it has been going on roughly year now!
Firstly, do the mortgage company have to be fair and try and help us move out, we're not trying to get rid of the negative equity for free.
Secondly, because the ex is still on the mortgage, is she still liable for half the negative equity even though she's been through a bankruptcy, I'm sure she would like half of any profit if there was some.
Can she stop my partner from selling the property?
Is there any way out of this complicated situation?
Any help is greatly received.

Thrugelmir

Hayley_grieve wrote: »

1st problem - ocelot are the mortgage company who don't seem to want to help! The property is negative in equity for roughly 10/15k. We have asked them what options there are but ocelot are offering us none at all, they have even dismissed our suggestions.

What are your suggestions?

Rather than saving, why aren't you paying down the debt owed?

Hayley_grieve

Were saving for two reasons:

1. If worse comes to worse we'll have to rent the property out, which we didn't want to do as our preferred mortgage would be a help to buy.

2. If I overpay, aren't we paying back the debt of the ex as well as ours?
Should she get away Scott free?

[Deleted User]

Hayley_grieve wrote: »

2. If I overpay, aren't we paying back the debt of the ex as well as ours?
Should she get away Scott free?

That's between you and her. The mortgage debt is joint and several - there is no his debt/her debt split.

Thrugelmir

Hayley_grieve wrote: »

2. If I overpay, aren't we paying back the debt of the ex as well as ours?
Should she get away Scott free?

Yes she is. However you've got the benefit of the property to live in.
If you are unwilling to take action yourselves to remedy the situation. No one else is going to assist you. Not all choices in life are easy or cost free.

I'm assuming that the mortgage is interest only so you aren't making inroads into the debt owed. Even if you let the property out. You still face the challenges of obtaining the lenders permission. Higher interest rates. Or even meeting a bad tenant. As there's no guarantee that letting will be a profitable venture.

I'm unsure what you expect the lender to offer. As the problem is yours to address not theirs.

Hayley_grieve

There really isn't a benefit as my partner doesn't want to live in the property but has had no choice due to his financial situation. Otherwise he would have been declared bankrupt. The problem we are having is mortgage company have not given us any options, all they said was to remortgage to remove her name but as you will know we can't remortgage a negative equity property.

getmore4less

why was the partner left on the property when they went bankrupt.

Normal practice is to buy there beneficial interest out at that point(for a token if negative equity) so they have no responsibility for the debt or future access to any equity.

silvercar

Firstly, do the mortgage company have to be fair and try and help us move out, we're not trying to get rid of the negative equity for free.

Fair in what sense? If you want to move you need to repay the money borrowed. Either cover the shortfall with savings or a loan or borrow enough money on the new property to repay this mortgage and have enough for the new property. So effectively you are using some of your savings to cover the shortfall.

Secondly, because the ex is still on the mortgage, is she still liable for half the negative equity even though she's been through a bankruptcy, I'm sure she would like half of any profit if there was some.

Any shortfall (negative equity) from her point of view falls into her bankruptcy. So effectively your partner is the only one liable for the shortfall. If there was any profit, the receiver would be after it.

Don't think of her getting away scot free. She has had bankruptcy to deal with. What's past is past. Selling this property severs all links with her which is especially good as she is bankrupt.