Information Please on Voluntary Repossession

hannah9000

Hi all,

My ex and I split back in December and we came to a mutual agreement that he would stay in the house and pay the mortgage until Jan 09 when it could be remortgaged in his name solely. Unfortunately every month I am asked for extra funds to pay the mortgage as he is not earning enough. He has 3 lodgers who all pay rent so I have no idea what he is doing with his money. Nor do I wish to know.

I do however want to get rid of him from my life and get rid of the house. And from the research I have done, my answer, is voluntary repossession. We were in arrears with the mortgage from November to February, and since have been up to date however with extreme difficulties.

I am the main account holder, although it is a joint mortgage. The mortgage balance is £158k. My questions:

How do I get the ball rolling? Who do I see first? Solicitor? Financial Advisor? Or Mortgage Company? (who fyi is GE Money)

Will there be any outstanding balances once the keys are handed over?

Will it have dire effects on my credit rating?

All advice gratefully received.
Many Thanks, Hannah.

inmypocketnottheirs

Will there be any outstanding balances once the keys are handed over?
That all depends on the repossession costs, estate agents fees, selling price and amount of mortgage to settle.
Will it have dire effects on my credit rating?
That all depends on if you clear all of the above. If there is any shortfall and you can not or will not repay it, then expect to be hounded to possible bankruptcy.

I can fully appreciate why you would want shot at any price, but a rash decision could well screw you up financially for a long time.

Please think very carefully about any possible consequences of a hasty solution.

hannah9000

Believe me it is not a hasty decision. I have spent weeks seeking out all my possible options, I want to try and avoid the bankruptcy bit so will pay any shortfall. But obviously theres a limit...

Tiddler_2

To voluntarily repossess your ex really needs to agree aswell (there is no such thing as main account holder on a mortgage)

If you need to get your ex out of the house then you need to speak to a solicitor.

If you want to sell it yourselves then get an estate agent in.

To hand the keys in speak to your mortgage company.

It will affect your credit rating even if you clear any shortfall.

The other thing to be aware of is that any estate agent dealing with a repo will charge corporate rates (higher than if you are selling it) and whilst the lender has to get a reasonable price for the property they base this reasonable price on a quick sale, as interest will continue to be charged until the house is sold.

chivers1977

Why are you waiting until 2009 to remortgage into his sole name - can you not "port" any product across to his name only?

inmypocketnottheirs

Surely it must be best to put the property on the market, priced for a quick sale and take it from there. If there is any shortfall between the sale price and the mortgage outstanding, it will be a lot less than if repossession proceedings are taken against you.

superged

chivers1977 wrote: »

Why are you waiting until 2009 to remortgage into his sole name - can you not "port" any product across to his name only?

Porting is moving to another property, you mean an equity transfer. Yes it will have a bad effect on your credit rating and permanently as you will be on the Council of Mortgage Lenders Repossesion Book.

There is no such thing as a main account holder, you are both jointly and severally liable on the mortgage meaning you are both liable for the full amount of the debt as well as the payment ie if one defaults or doesn't pay they can go after the other party for the FULL amount.