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  • FIRST POST
    • Duggary
    • By Duggary 29th Nov 17, 10:14 PM
    • 5Posts
    • 1Thanks
    Duggary
    Strategic Default. For The Best?
    • #1
    • 29th Nov 17, 10:14 PM
    Strategic Default. For The Best? 29th Nov 17 at 10:14 PM
    Trying to keep this as concise as possible: My girlfriend has been split up from her ex for several years and has recently moved in with myself. She has severed nearly all ties with her ex except for their joint mortgage on a property that neither of them now live in.

    Due to mental health reasons she has reduced her hours at work and currently has a total income of about 900/month and essentially cannot afford to keep paying the mortgage. Naturally her preferred option was to sell but her ex is refusing to do so, instead choosing to not pay the mortgage and do nothing. I believe that it is because he is an abusive and controlling person and this is ultimately the last thing he has with which he is able to control her and wind her up.

    So ultimately, she are left with a house in negatife equity that she is unable to do anything with and is a big black hole of money.

    I think (I may be wrong) the best solution for her here is to deliberately default the mortgage to eventually force the sale by the mortgage provider and then split the shortfall in half between them and pay it back in their own time.

    Her credit rating is through the floor anyway so this won't really affect her.

    Does anybody know how long a provider would take to begin repossession proceedings? They are already 1000+ in arrears and the mortgage is about 52k and the house worth between 40-50k.

    Also would applying for bankruptcy help her in this scenario? As I said earlier she earns 900/month (inc child benefit and maintenance) she gives me about 200 for food, 200 for bills, 200 rent and she pays 50 to her dad to repay borrowed money, 100 on council Tax and insurance for her old house, to me she has a child and herself to cloth an medicine to buy, travel and all manner of day to day things. Basically she can't afford the 200/month mortgage.

    Does anyone have any other ideas or are we on the right track with a strategic default? Or would bankruptcy be best to speed up the process a little? It is worth noting that we aren't bothered about dealing with a shortfall of 5-10k, our main priority is to have the house off of her back and sever the final tie with her manipulative ex.
Page 1
    • Thrugelmir
    • By Thrugelmir 29th Nov 17, 10:17 PM
    • 58,454 Posts
    • 51,833 Thanks
    Thrugelmir
    • #2
    • 29th Nov 17, 10:17 PM
    • #2
    • 29th Nov 17, 10:17 PM
    If the mortgage isn't being paid at all. Speak to the lender regarding voluntary repossession, i.e. handing the keys back. Little point in accruing a larger debt than neccessary.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • BoGoF
    • By BoGoF 29th Nov 17, 10:21 PM
    • 3,120 Posts
    • 2,392 Thanks
    BoGoF
    • #3
    • 29th Nov 17, 10:21 PM
    • #3
    • 29th Nov 17, 10:21 PM
    Bear in mind if there is a shortfall each of them are jointly and severally liable for full amount. Its not as simple as paying 'your half'
    • Richey_
    • By Richey_ 30th Nov 17, 12:28 AM
    • 320 Posts
    • 365 Thanks
    Richey_
    • #4
    • 30th Nov 17, 12:28 AM
    • #4
    • 30th Nov 17, 12:28 AM
    If she goes bankrupt it!!!8217;s unlikely that you and her dad will get any monies in the short term at least, this will be at the discretion of the OR and the would expect her dad!!!8217;s loan at least to be included in the bankruptcy. She needs proper advice from Christians Against Poverty, Stepchange or a similar debt charity
    • Mortgage_Adviser
    • By Mortgage_Adviser 30th Nov 17, 11:39 AM
    • 125 Posts
    • 46 Thanks
    Mortgage_Adviser
    • #5
    • 30th Nov 17, 11:39 AM
    • #5
    • 30th Nov 17, 11:39 AM
    Has she spoken solicitors about what oprions she has in regards of forcingh him to agree the sale?
    • Thrugelmir
    • By Thrugelmir 30th Nov 17, 1:56 PM
    • 58,454 Posts
    • 51,833 Thanks
    Thrugelmir
    • #6
    • 30th Nov 17, 1:56 PM
    • #6
    • 30th Nov 17, 1:56 PM
    Has she spoken solicitors about what oprions she has in regards of forcingh him to agree the sale?
    Originally posted by Mortgage_Adviser
    No equity. No one left to pay the bill.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Mortgage_Adviser
    • By Mortgage_Adviser 30th Nov 17, 2:13 PM
    • 125 Posts
    • 46 Thanks
    Mortgage_Adviser
    • #7
    • 30th Nov 17, 2:13 PM
    • #7
    • 30th Nov 17, 2:13 PM
    The court can enforce the sale of the property and decide who owns what.
    The OP then would just have her part of the debt and a full clear separation from her ex.
    Reposession is worse on a credit file than the bancruptcy So I would be trying to avoid it as much as possible.
    • Duggary
    • By Duggary 1st Dec 17, 8:03 PM
    • 5 Posts
    • 1 Thanks
    Duggary
    • #8
    • 1st Dec 17, 8:03 PM
    • #8
    • 1st Dec 17, 8:03 PM
    We spoke to them about this but they were rather uninterested in the whole scenario unless her ex iwas willing to also hand back the keys. It is a bit like getting blood out of a stone when you're talking to him.
    • Duggary
    • By Duggary 1st Dec 17, 8:08 PM
    • 5 Posts
    • 1 Thanks
    Duggary
    • #9
    • 1st Dec 17, 8:08 PM
    • #9
    • 1st Dec 17, 8:08 PM
    The problem I see with going to solicitors is the cost, which, if the end result would be the lender repossessing (hopefully soon?) we may as well keep the money
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