Joint mortgage holder missed payments

Vandrews

Hi All,

Just after a bit of advice. In summary I jointly own a property as tenants in common with a friend who I was living with, initially I paid more of the mortgage at the start. A few years ago I moved out and it was agreed that she will continue to live there and pay the mortgage but recently she has started to missed a few payments. Neither I or the mortgage lender have been able to get in contact with her.

As I want the property to be sold, I could either "force a sale" or let the mortgage lender repossess and sell the property. I am aware it will affect my credit rating if it hasnt done so already, and that there will be costs involved in both forcing a sale or letting the property be repossessed.

Which option should I take?

Thrugelmir

For the time being pay the mortgage and use a tracing agent. Both options you've suggested should be avoided if at all possible,

Vandrews

Thrugelmir wrote: »

For the time being pay the mortgage and use a tracing agent. Both options you've suggested should be avoided if at all possible,

We dont need a tracing agent as we know where she is, she is living at the property but she is not replying to messages, emails, letters or phone calls to give a explanation why she missed the payments.

[Deleted User]

Vandrews wrote: »

Hi All,

Just after a bit of advice. In summary I jointly own a property as tenants in common with a friend who I was living with, initially I paid more of the mortgage at the start. A few years ago I moved out and it was agreed that she will continue to live there and pay the mortgage but recently she has started to missed a few payments. Neither I or the mortgage lender have been able to get in contact with her.

As I want the property to be sold, I could either "force a sale" or let the mortgage lender repossess and sell the property. I am aware it will affect my credit rating if it hasnt done so already, and that there will be costs involved in both forcing a sale or letting the property be repossessed.

Which option should I take?

You can force the sale of the property through the courts and if it's a choice between that or letting the lender repossess I would force the sale. A repossession would have to be declared on all future mortgage applications.

Where are you living now? Rented? With family? Somewhere else that you've bought? As a joint owner you have every legal right to enter the property jointly owned with your friend. Have you actually gone round to the property to discuss the situation with her face to face?

foxy-stoat

Why not go to your property and talk to them?

Vandrews

Lover_of_Lycra wrote: »

You can force the sale of the property through the courts and if it's a choice between that or letting the lender repossess I would force the sale. A repossession would have to be declared on all future mortgage applications.

Where are you living now? Rented? With family? Somewhere else that you've bought? As a joint owner you have every legal right to enter the property jointly owned with your friend. Have you actually gone round to the property to discuss the situation with her face to face?

I am in a different part of the country in another property that I have purchased

foxy-stoat

If you have already got a mortgage on another property then I would seriously try and deal with this yourself without it costing you in legal fees in forcing sale. Unless there is enough equity in the property to take up 6-12 months of missed mortgage payments and additional fees and interest you may find that you are liable for any shortfall when its sold, which you will have to pay.

Thrugelmir

Vandrews wrote: »

We dont need a tracing agent as we know where she is, she is living at the property but she is not replying to messages, emails, letters or phone calls to give a explanation why she missed the payments.

I doubt the explanation is going to assist you. The damage is going to compound as the arrears mount.

Vandrews

foxy-stoat wrote: »

If you have already got a mortgage on another property then I would seriously try and deal with this yourself without it costing you in legal fees in forcing sale. Unless there is enough equity in the property to take up 6-12 months of missed mortgage payments and additional fees and interest you may find that you are liable for any shortfall when its sold, which you will have to pay.

I dont want to take the legal route either, but I may have little choice if she locks herself away and doesnt want to be contacted. According to my rough calculations there would be enough equity in the property.

foxy-stoat

Vandrews wrote: »

I dont want to take the legal route either, but I may have little choice if she locks herself away and doesnt want to be contacted. According to my rough calculations there would be enough equity in the property.

Just remember you are jointly and severally liable for any fees and negative equity. If she wants to lock the front door and wait for the baliffs to kick her out it will cost you many thousands in the end.

Just make sure in your calculations, you know the lenders fees for missed payments, added interest, their legal and court fees to gain a possession order and the fees that the baliffs will charge them to gain access.....and maybe repair any damage.

Good lucks

[Deleted User]

Vandrews wrote: »

I am in a different part of the country in another property that I have purchased

Take a trip to the old place at the weekend or even a day off work to visit the property to try and find out what's what. Do you have any mutual friends who have been in contact with the joint owner?