Coming off mortgage and DRO

jelopolo

Hello
I am looking into a DRO but I am still on the mortgage to my ex’s house. I have started the process to come off and I have never lived there or paid towards it. Can anyone tell me if this will be still classed as an asset? Any advice greatly appreciated
Thank you 

sourcrates

Technically you are a homeowner, and you can’t legally have a DRO.

You must be removed from the mortgage before you can apply.

Once you are removed, all well and good.

fatbelly

It certainly raises  questions.

I suspect you are recorded on the Land Registry entry as a joint owner.

You cannot apply for a DRO as a homeowner. 

Once you are removed rom the register - if you apply for a DRO in the next 2 years there will still be questions.

Guidance says

A DRO application may be affected if the debtor has given away or sold for less than its true value any property in the 2 years prior to the DRO application. All potential undervalue transactions should be included in the application and we will consider the circumstances to determine whether to approve or decline the application.
For undervalue transactions, you should look at:

• whether the debtor was insolvent at the time of the transfer

• why the debtor transferred the property

• when they transferred the property

• who they transferred the property too

• whether it was valued at the time of transfer and provide evidence

• what the value of the transferred property was, and provide evidence

• how much consideration the debtor received, if any

• what the debtor has done with any funds they received

• whether the debtor got legal advice for the transfer

• whether the debtor kept any interest in the property

jelopolo

Thank you.
We were in the process of moving house we split up. My ex moved into the house and I went to rent from a housing association. I’ve signed the transfer forms and sent them off. I never moved into the house and have never paid towards it.
i don’t have any assets or savings I had 5k from the sake of the previous house and I used this towards starting over as I came away with pretty much nothing. 

My ex is getting the mortgage moved to his name only but he’s recently changed jobs so not sure if this will affect anything. I don’t think he is any better off than me and i don’t want to make him sell as our children are settled in both houses now and I think rent would be more than his mortgage.
thank you for any advice, I need to get sorted and I’m getting worse each month but just don’t know what to do for the best 

sourcrates

Do you want to run your situation by us ?

What debt you have, who its owed too, how much in total.

Debt collection can be a lengthy process and nothing happens quickly, so there will be no rush to do anything, there are not many situations that can`t be easily managed one way or another.

jelopolo

Thank you . I broke up with my husband and we were in  the process of moving to downsize and save money. 

He stayed in the house and I moved out, then he moved into the new house and I rent. There wasn’t a lot from the house and we halved the debt, I was given 5k from the sale which I used towards setting up as I got very little from our house and pretty much started from scratch.
I owe 10k on a loan and now around 15k on cards. I thought once it settled down and I had the house ready then I’d save money and it would level out but in reality all my bills have shot up and I’m not making it to the end of the month and used cards to manage and it’s not sustainable. 

I’ve asked to be taken off the mortgage, this was always the agreement, I never moved in and have nothing to do with it. I can’t get the cost of my credit down, I rent and my car belongs to work. 

Grumpelstiltskin

Don't think that if you can't get a DRO then there isn't an answer to your problems.

Pop across here 
Debt-free wannabe — MoneySavingExpert Forum

They will want to know full details of your income and debts but the experienced guys on there will suggest the best way forward for you.

sourcrates

Judging by what fatbelly has posted above (DRO Intermediary) you may be best off making token payments for a while until 24 months have elapsed since you came off the mortgage.

Otherwise you will find yourself answering questions, I`m not saying a DRO wouldn`t be approved, but I think you would be making things difficult for yourself going ahead any sooner.