Mortgage Default and unresponsive ex-spouse

jamiegutz

Hello everyone, 

Im hoping some of you might be able to help me with a tricky situation. Some background: 

Property purchased in 2002
Remortgage in 2009
Current Settlement Figure:  130,000
Current Value:  240,000 

I purchased this house with my ex wife; we had no children and separated in 2011.  Divorced in 2020 (yes I waited a long time).  No financial settlement. My understanding is that she is still living in the property.  Ive not spoken with my ex in 15 years and the only communication ive had is when she signed the divorce papers in 2019, and more recently, through solicitors regarding a financial settlement and the potential property sale. 

I was paying the mortgage payments myself up until interest rates went up significantly (the mortgage was on a variable rate) and I simply couldn't afford the repayments any more.   I spoke to the bank (natwest) and at first they agreed a repayment holiday and then a forbearance.  To be fair, the bank have been absolutely fantastic and were very understanding and accommodating.  I have kept them up to speed on everything, replying to their emails quickly and providing them with all of the information they asked for.   During this time my ex either ignored or refused to respond to any attempts from the bank to contact her to get her details, financial situation or her understanding for the repayment holiday/forbearance. 

Earlier this year, I engaged a solicitor to try to sort the financial settlement once and for all so the house could be sold or she buys me out.  At first she ignored the letters and emails, then finally she engaged a solicitor who replied stating she acknowledged  the need to settle financial matters and that the property was the only asset we owned jointly.  She was going to get some valuations from estate agents and then take some mortgage advice on if/how she could purchase my share.  After that, despite numerous chasers, we got radio silence again.  We are now starting the process to get a court to order a financial settlement, but this will take time. 

The bank, understandably, are losing patience and have now said they either need a repayment proposal for the arrears or confirmation that the house is on the market otherwise they will start the default process next month. 

Now, obviously I don't live in the property, and I don't even live in the UK.  It honestly makes no difference to me if the bank repossess (other than a pretty poor sale price).  However, I don't want to leave her homeless and I wouldn't wish a repossession on anyone.  

Ive asked the bank and my solicitor to write to her again and explain that if she doesnt communicate she will lose her home.  Im not hopeful of a reply. 

I dont really understand the default process when it comes to mortgages so im hoping someone here can advise me how long I would realistically have after they issue the default to the house being repossessed?

other than clearing the arrears, Is there anything I can do to delay this further so we can get the financial settlement sorted so the property can be sold?  

Also, is there any other advise anyone can give me on how to manage this situation? I really feel that I have done everything possible, but I still feel obligated to try to resolve this mess. 

THanks in advance.

J 

ACG

You have. 
But to be fair if she is currently in mortgage arrears which it sounds like she is, then she will struggle to get a mortgage anyway. 

If she has ignored most attempts to resolve the issue and is now not doing anything about it, leave it. Tell the bank you have tried and that you are out of options so are happy for them to go to the next step. Ultimately the sooner it seels, the sooner you get your money and the interest stops getting added - it will be comppounding interest so its better all round the quicker it sells and they will be added less costs - those letters you want sending out  will no doubt have a cost attached to them. 

DE_612183

If the mortgage is in joint names - you will held jointly liable - so it's not just the poor price that will affect you.

If you never return to the UK and never want credit again - no problem - but that's a big assumption to make.

ACG

DE_612183 said:

If the mortgage is in joint names - you will held jointly liable - so it's not just the poor price that will affect you.

If you never return to the UK and never want credit again - no problem - but that's a big assumption to make.

Never is a long time. 
3 years and you should have options. 

jamiegutz

ACG said:

You have. 
But to be fair if she is currently in mortgage arrears which it sounds like she is, then she will struggle to get a mortgage anyway. 

If she has ignored most attempts to resolve the issue and is now not doing anything about it, leave it. Tell the bank you have tried and that you are out of options so are happy for them to go to the next step. Ultimately the sooner it seels, the sooner you get your money and the interest stops getting added - it will be comppounding interest so its better all round the quicker it sells and they will be added less costs - those letters you want sending out  will no doubt have a cost attached to them. 

Thanks so much for the quick reply.  You are right; if she isnt going to respond, then i cant do much else. 

DE_612183 said:

If the mortgage is in joint names - you will held jointly liable - so it's not just the poor price that will affect you.

If you never return to the UK and never want credit again - no problem - but that's a big assumption to make.

Yes it is in joint names.  I left the UK over 20 years ago and tbh feel like a foreigner whenever I go back.  You can never say never, but the likelihood of me returning permanently is extremely slim.