Cyclone Posted June 12, 2015 Share Posted June 12, 2015 He probably has only one option. Sign over his half of the house, put the mortgage in her name and cut his losses then paying the mortgage will be down to her. She would have to sell at a loss then. He will still need to consult a solicitor. I was in a similar situation about eight years ago But I had children and my ex had to legally provide a roof over my daughters head hence signing the house over to me. I had to take on his debt against the house but I could afford to pay my mortgage, the debt will have to be paid off if I sell. She's not forced to accept the offer of taking on the ownership of the house and the debt secured against it though. ---------- Post added 12-06-2015 at 09:31 ---------- She will have to sell it then or the bank will just re-posess it if she defaults on the payments. You are either soft hearted or she has you by the short and curlies. Stop feeling sorry for her. If the house is sold your husband will get his money back. See a solicitor asap. Also from what I read there is no money to get back. It's purely about offloading the old mortgage and house so as to be free to get new ones. The house is in negative equity, so both mortgagee's would need to put in additional money after the sale in order to clear the mortgage. Link to comment Share on other sites More sharing options...
Jomie Posted June 12, 2015 Share Posted June 12, 2015 Zanna - it could be that if you explain that you are seeing a solicitor in respect of forcing a sale she would at least know that you are serious about it. Hopefully she will see the sense in complying rather than wasting money on solicitors and court orders. I do hope so. Link to comment Share on other sites More sharing options...
zanna Posted June 12, 2015 Author Share Posted June 12, 2015 Hi guys, thank you so much for your advice. We have spoken to a solicitor this morning who has advised that our first step should be to send her a letter from a solicitor outlining all the possible resolutions available before going to court. Advise her that we will be pursuing her for costs on the basis that we have attempted to resolve the issue without legal proceedings. If it needs to go to court we can apply to force the sale at a reasonable value I.e market value (of course we would be liable for the deficit but so be it). He said it was highly possible to get this order as it is in our best interest to sell, I.e we can't get another mortgage with the current arrangement. I pray to god it doesn't come to that!!! Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted June 12, 2015 Share Posted June 12, 2015 (edited) If the house is in negative equity then the mortgagee (bank/building society) may not be willing to discharge liability so easily. In layman's terms, they may not be willing to take your husbands name off the mortgage while there is still a debt in place following sale. It's another factor to consider when you get back in touch with your solicitor - especially if you're looking at buying property yourselves. ----- Relating to the £6,000 loan by parents; if the house is in negative equity than that money has gone. Was the money lent contractually to the couple, or given as an aid? The parents could argue that the couple (your husband and his ex) are joint-and-severally liable, and a court may support that, but it doesn't bring the money back, and creates a problem for the parents to chase that debt through a court if it isn't paid. The simple answer - parents accept the money has gone or the son pays it back himself out of obligation. Edited June 12, 2015 by Chris_Sleeps Link to comment Share on other sites More sharing options...
zanna Posted June 12, 2015 Author Share Posted June 12, 2015 In terms of the deficit we would have to get a loan to pay it off, it's either that or move in To the property!! Link to comment Share on other sites More sharing options...
Chris_Sleeps Posted June 12, 2015 Share Posted June 12, 2015 In terms of the deficit we would have to get a loan to pay it off, it's either that or move in To the property!! Just to make it clear - if your husband and his ex are joint-and-severally liable for the mortgage shortfall, the money that needs to be paid after the house is sold; paying 50% does not clear the debt. He doesn't owe half the money - the couple jointly owe it all. So if the house sells and there is £10,000 left to pay - then your husband needs to borrow £10,000 to pay that. He cannot pay £5,000 and claim the other half belongs to his ex - it doesn't work like that. Link to comment Share on other sites More sharing options...
zanna Posted June 12, 2015 Author Share Posted June 12, 2015 Oh yes we know, we are now setting up an apt with the mortgage company to discuss 'management of shortfalls' as they call it. The crux of the matter is that she wants to keep the house. We want to move on. If £10k is what it takes then that's just the cross we will have to bare to get rid of her from our life. Or like I said we all move in together. What a fun game that would be Link to comment Share on other sites More sharing options...
ShefStealth Posted June 12, 2015 Share Posted June 12, 2015 You also need to think about your credit ratings/score with regards to all of this. You're saying about the possibility of taking out an estimated £10K loan to pay back the shortfall of the potential mortgage deficit because of the negative equity, the mortgage would not be resolved on paper for the purpose of his credit report and so he may then struggle to take out the loan (especially as this would be unsecured borrowing). You'd then have the knock-on effect of having the loan against your credit score as well as the overhanging mortgage until that is resolved, if you are able to take out the loan but in the meantime it would really tank the credit score which would then take time to recover. The fact that you're thinking of having to take a loan out to make up the shortfall, on top of that you'll need to pay the parents back means that you'll perhaps not have the sort of deposit required to get your next mortgage anyway. Your new mortgage company will look at everything going back over 5 to 7 years at least, and the fact that the 'old house' issue would then only recently have been resolved on top of additional loans may then start to ring alarm bells with the potential mortgage lender. Link to comment Share on other sites More sharing options...
zanna Posted June 13, 2015 Author Share Posted June 13, 2015 So our only option is to let her stay there and rent for the rest of our lives??? ---------- Post added 13-06-2015 at 11:37 ---------- I don't understand why the mortgage wouldn't be classed as complete on paper if the full debt is paid? Can you explain further? Link to comment Share on other sites More sharing options...
WasThatWise Posted June 13, 2015 Share Posted June 13, 2015 Hi just a question if it is a joint mortgage was it allowed for his ex to put it to interest only without his permission or did he agree to it at the time? Link to comment Share on other sites More sharing options...
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