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Home at risk ?

Umlat
Umlat Posts: 3 Newbie
Name Dropper First Post
edited 1 June 2023 at 11:26AM in Debt-free wannabe
Hello, and thanks for reading.

 My wife of 8 years and I own our property outright, as Joint tennants.

She has a joint mortgage with her ex husband on another property, which is likely to go into default if it cannot be sold in time/for the amount oustanding on it.

Is our current house at risk for any debt she might have following the sale/surrender of her old property ?

Many thanks.

Comments

  • fatbelly
    fatbelly Posts: 22,003 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    No. There may well be a shortfall debt on the other property but it is almost impossible that that would impact on your property.

    Have they asked the lender if they have an Assisted Voluntary Sale scheme?
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,879 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    No your home is not at risk. The other mortgage is secured on a different property for which your wife and her ex are liable. Should there be a shortfall this will be a joint liability for them both but your property held with her is not at risk. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
  • fatbelly
    fatbelly Posts: 22,003 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    The key at this stage is to maximise the sale price in order to minimise any shortfall. Selling a repossessed property will result in maybe 10-15% lower value, so to be avoided at all costs.

    Post on the housing board for more ideas
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