Mortgage after Moving Out

AuntyJean

Hi friends.

I took the plunge and moved into rented accommodation with my new man. Life is heaven & I have managed to almost sort out my past probs but he has a problem you may be able to give some advice on.

He has always been the earner of the family and his wife only works part time. He has paid all the bills with a little contribution from her. They remortgaged their property (about 90% now) and when she found a new man he moved out but his wife's new lover has not moved in.

My new fella is still paying the whole of the mortgage but has stopped paying all other bills. Mortgage about £695pm. His wife is divorcing him but this is taking time (she has free solicitor and is not timely with providing documentation evidently). In the meantime, he gave wife option to buy him out but she could not get a mortgage on her own.

The only option was to sell up but a) there is little equity in the property due to the high mortgage and b) she is not co-operating with the sell.

So he stopped paying the mortgage this month. What are the consequences?

We have been together 4 months and plan to get married but finances are crippling us at the moment. I am struggling to pay for everything where we are living but he is crippled with the mortgage and a loan which should be paid off by end July. His income just covers both with a bit of spending money.

He is desparate to contribute and feels really bad about it hence reason for cancelling mortgage but I am concerned they will come after him as the main earner!

~Beanie~

I'm sure an expert will be along shortly with some proper advise but in my opinion, stopping payinging the mortgage is NOT a good idea. It will wreck his credit rating and he will get chased for late payments etc. If the house gets repossessed then he could end up still owing money for years afterwards as the lender will chase him for the shortfall between the mortgage and whatever they sell it for.

It doesn't matter that he is no longer living in the house, his name is still on the mortgage and therefore he is still liable.

CLAPTON

if the mortgage is not paid the house will be repossessed.
usually this means that it goes at a low price.

assuming a joint mortgage both parties will be chased for payment

both parties will have their credit record trashed and will find it difficult to get credit/ mortgages in the future.

If there is a shortfall from the sale then they will both be chased for the shortfall.

it would be better for him to discuss the issue with his wife and to make sure she fully understands the consequences of not clearing the mortgage debt both for her and for him.

PS make sure you do not open any joint accounts with him until all these matters are resolved.

Dick_here

Can't his wife just take over paying the current mortgage ?

Conrad

If I were him my children would be the paramount concern and to ensure they were finacially secure above any new girl freind.

They didnt have any choice in being bought onto the planet, he bought them here.

All other considerations are secondary.

Your signature says "there is always light within the dark" - I would imagine this is the childrens hope too.

His wife has a new partner sure, but that had NOTHING to do with the children or thier rights.

silvercar

Of course she can't afford the mortgage on her own, he was the main earner, she worked part-time and looks after the children. How do you expect her to suddenly have enough money to pay all the bills and the mortgage?

He needs to sit down with his ex and talk about finances. He needs to provide for his children and probably his ex- wife. In court he would be seen as liable to fund her (at least in part) until such time as she remarries or moves someone else in.

Dick_here

silvercar wrote: »

Of course she can't afford the mortgage on her own, he was the main earner, she worked part-time and looks after the children. How do you expect her to suddenly have enough money to pay all the bills and the mortgage?

That is a very hostile response to a fair question.

If she cares enough for the kids, she'd get herself a full-time job, pdq. Then maybe she could pay the mortgage.

AuntyJean

Conrad wrote: »

If I were him my children would be the paramount concern and to ensure they were finacially secure above any new girl freind.

They didnt have any choice in being bought onto the planet, he bought them here.

All other considerations are secondary.

Your signature says "there is always light within the dark" - I would imagine this is the childrens hope too.

His wife has a new partner sure, but that had NOTHING to do with the children or thier rights.

No children involved only 18 yr old daughter who we are both looking after.

clobber_2

Oh well, it's OK then if her dad ends up bankrupt and her mum homeless.

AuntyJean

clobber wrote: »

Oh well, it's OK then if her dad ends up bankrupt and her mum homeless.

Any suggestions!!!

Maybe he should just keep paying the mortgage so she and her lover can live there in luxury eh?

chappers

What you probably should be doing is speaking to the mortgage company and explain the situation and try and get the house sold as quickly as possible, that way you will get a better price than if it gets repossesed and sold, not to mention the extra costs involved.
your boyfriend might end up walking away with adebt if there is anegative equity situation but that would probably be less than the current mortgage.
He really needs to speak to the lender and see if they will let him sell for less than the outstanding mortgage and what he can do to sort out repayment of anything left they owe.