Complicated Debt

lauraocal

My partner has a mortgage with a large secured loan against it.
I'm not mentioned on the mortgage but I beleive since I have been living in the property and paying the mortage also (for 6 years), that I have an interest in the property as far as the courts are concerned?

I also beleive that creditors cannot take belongings that you use for work, ie, a car, so does working from a property have the same effect?

silvercar

Doubt it, presumably if you can work from home, you can work from any home.

It would be too easy if anyone facing repossession could move someone in and claim that their home-working meant the property couldnever be repossessed.

I wouldn't presume automatically that you interest in the property would be safeguarded. You really need to get this registered. If you were there at the time your partner took out the mortgage you would have been required to sign something to the effect that you won't block a repossession. If you moved in later, I doubt you have rights beyond that of the mortgage company. (all a mortgage is, is a type of secured loan, so the same advice applies.)

CLAPTON

you have given very little information here so its difficult to give advice

But assuming that the situation is
your OH owns a property with a mortgage and secured debt
and maybe other debts
and is not able to pay the mortage and/or secured debts? (presumably he knows the importance of paying the mortgage and secure debts even if it means paying nothing on unsecure debts.)

and you have lived there for 6 years and helped with the mortgage and maybe work from home?


Well
if he doesn't pay the mortgage or secured loan then its almost certain the property will be repossessed.... that's why debt is secured on the property. This would have to go via a court.

The fact you contributed to the mortgage is unlikely to be considered materaial but do seek proper advice. A divorce judge may well take it into account on the division of spoils but in a debt situations its less likely.

Your assumption about creditors not taking belonging required for work is incorrect.
Its true that a judge would have to decide but it would very much depend upon the circumstances... so a old banger needed to get to work might be OK but a brand new Audi sport might not... and of course secured debt is different and will be repossessed.


If you are in this situation or getting close,I would suggest you seek help form CCCS, Payplan, CAB asap. You also may wish to post up the full details on the debt free wanabe board and see if people there can help out.

lauraocal

Our mortgage is being paid the secured loan is not.
On the national debt advice website it discussed how people who have lived in a property but are not on the mortgage are taken into account with repossessions.
You have message boards in the employment section regarding my job, I work for teletech, the company disscussed in the threads.

I cannot register my interest in the property as it would require a signature from the secured loan bank (deed of postponement?) although the mortgage bank were going to give us a homeowner loan and add me to the mortgage but it never went through as our business went under (secured loan was a business loan) and we wouldn't have been able to make repayments as it put us both out of work with no income at all.
This is why we have not been paying the business loan as it was £707 a month.
The bank is awaiting on a proposal from me for repayment, but I don't know how to do it.
I have worked out my budget but don't know how to put it all down on paper, I have been on the national debt advice website and asked for one of there self help packs to help me do this proposal. Although its taken over a week to arrive so far.
I'm just unsure of what they are expecting, there is only 5 years of the loan term left and don't know if I should put in the propasal to extend this or if they would consider stopping the interest payments from the loan because when we were paying it as normal, our payment of £707 went into our loan account from the current account and each month we'd pay about £370 in interest so in effect only be paying £337 off the loan each month.
There is no way we can keep up with that interest now as we'd never get the loan amount down.
If anyone could help me with this proposal I would appreciate it, I never thought of coming here and asking for help with this.

UK007BullDog

Please go to the "debt-free wannabee" board on this forum site. There the gents and ladies will help you much more than we can.

If you both now had regular jobs I would have said remortgage the whole outstanding debt to secure to the house to make it more affordable for the both of you. However as you have defaulted already only a subprime lender would do so the rates would be higher.

But this depends on incomes, ages, debt amount and property value.

None of which you have told us so cannot really give any tips.

Gangstabird

To my knowledge you only have 'beneficial interest' in a property when YOU are in financial trouble and have lived there for more than two years, then they can put a charge on the house even if it is not in your name.

I am pretty sure that you cannot be held responsible for someone elses debt, just what I said above, so in this case, any equity you may want from the house will be after the charge is taken into account. I hope this makes sense.