Potential bankruptcy to end financial abuse by ex on joint negative equity mortgage

cutepuppy12

Long story short, when I was 20 years old I purchased an apartment with a boyfriend. We tried to sell the property a few years ago upon a nasty, long time coming separation, but ended up messed around by a sale that took over 12 months, by which point the property fell into negative equity and has continued to drastically reduce.

Additionally, it is likely he will be going to prison for a few years. He has no interest in the property, and hasn't been contributing to any of the payments in a while. Neither of us live there (or want to/can), so the property is rented out, which just about covers the mortgage, but not the service charges.

Since the initial sale falling through, he has refused to sell the property, and has commented to say it pleases him to see me suffer.

The negative equity is at least 80K, I'm not sure I'll be able to remortgage when the two year fixed term ends in the next 3 months.

I have briefly explained some of the DV/FA circumstances to the lender, but they unfortunately cannot do anything about it.

Do I have any other realistic options than declaring bankruptcy?

I live with my family, have a job but no other assets, I use a family members car but still pay them insurance and pay for my own fuel. I have animals that I need to provide for. It seems the more I read the worse it is. My only goal is to get rid of this flat and the financial burden of it as well as the financial connection with my ex.

RAS

The fix ending isn't an issue, in that as long as the mortgage is paid up you can just log on, choose the best fix and sign up without a credit check.

Not that I'm recommending you continue to keep the flat. Not least as the fees and charges also need paying

There are specialist charities that help deal with financial abuse. You may find it helpful to talk to one and they may be able to advocate for you. Check Surviving Financial Abuse who collaborate in a help line.

The other complication being that the new rental laws make it harder to remove tenants. Although that might be the OR's problem not yours.

MEM62

The mortgage company should be more understanding as you are suffering financial abuse. Make sure that they are really clear that this is what you are going through. You may have cause for complaint if you are not treated appropriately. Also, as advised by @RAS, seek advice for those in your situation.

saajan_12

80k negative equity is very high - do you have any idea how that accumulated? Was it a high starting LTV and has the property dropped in value? As you say the rent covers the mortgage, so was there a long void, or was athe rent not always sent to the mortgage co? Can the rent be increased to its full potential to chisel down on the negative equity?

Ultimately if he refuses to sell amicably then your options are either force a sale through the courts or stop paying and let the mortgage company repossess it. The mortgage company being more understanding and holding off on repossession wouldn't help you.

cutepuppy12

https://forums.moneysavingexpert.com/discussion/comment/81980469#Comment_81980469

The flats in the building aren't selling at all. Some have been advertised for 2/3 years for 150K and not sold. The mortgage is 7/8 years old at about 220K.

There are no voids or mispayments, but I need to cut this financial tie to the ex.

ManyWays

I hate to say this, but honestly bankruptcy could be your best option. The double whammy of massive negative equity and an hostile ex isn't something that it likely to be solved easily, and possibly not at all, by talking to the mortgage lender about economic abuse. You could spend several stressful years trying to make progress and then still find bankruptcy is the only simple option; in that case you will regret not making this choice now.

I suggest you take good debt advice from National Debtline on 0808 808 4000.

MEM62

https://forums.moneysavingexpert.com/discussion/comment/81982369#Comment_81982369

I tend to agree with this. Bankruptcy is the nuclear option but, in this case, would give the OP a clean start.

sourcrates

Of course the other option is to stop paying, just hand the keys back to the mortgage company and walk away.

A couple of years down the line the debt will likely be sold to a bottom feeder debt purchaser who will then go through their standard letters, once you tell them you have no money, usually in these mortgage shortfall scenarios, they do tend to back off, and slither back into the woodwork.

If the situation developed and court action was imminent, then possibly consider bankruptcy, but I see no rush to go down that road just yet.

ManyWays

At this point, living with family and no other assets, I suggest this is the best time to go bankrupt and get it out of the way. The Limitations Act time for a mortgage shortfall debt as 12 years, a lot can happen in than time and you do not want this emerging again when your finances are in a much better situation.

HillStreetBlues

BR is there to give people a clean break,a and sounds like the OP needs that more than anything else. BR allows the OP to take control of their own life.