So in short ...

[megamaniac]

One of my friends took on the negative equity last time around as full and final divorce settlement and then stayed put until the market rose again.Effectively costing him nothing other than the mortgage payments,good plan i thought.As long as you don't want to move.

[Road Pest]

scotal said:

Road Pest said:

Grey Ghost said:

If the house is in joint names then surely she is responsible for 50% of the negative equity? Still not an ideal situation but if you could raise your 50% share of the negative equity and pay this off if you could sell it then would she be left with a financial problem to be solved on her own and your credit rating undamaged?

If she does not understand the finance implications of selling a house with negative equity perhaps a simple explanation of her "share" of the problem will ensure she understands she just cannot walk away.

Sorry to hear of your troubles but don't let personal feelings come into this financial arguement.

Thanks, we've already gone through this, but she sees that a solicitor is better placed to tell her what is what rather than me, which is fair enough. I hope I am not coming across over emotional, these things happen.

She could always speak directly to your lender (not maybe the brightest of ideas) or a broker. I'll happily run through things with her, but seeing as it would be you giving her my contact detaisl I'm assuming she wouldn't believe me.

Thanks for the offer but I think that she needs to do this on her own. Somehow I think we'll be here for a couple of years before we can move, am just concerned about what her solicitor will say to do.

[Marcellus]

in the last property crash (or was it the one before) my then wife and I handed the keys back...

My now ex mother in law thought she was some financial advising wizz and helped us plan how we could hand the keys back and disappear from the building society.... we thought we were being so smart and spent a couple of months planning our "disappearance" and then did it... moved and then dropped the keys through the building societies letter box with a letter pleading and apologising.

about 5 years later I had a strange call at work, a few weeks after that we had a knock on the door and a month later were sued by the building society for the £20k negative equity, interest, costs etc etc etc............ believe me they don't forget who owes them what and make sure they get their cash!!

[Road Pest]

Marcellus said:

in the last property crash (or was it the one before) my then wife and I handed the keys back...

My now ex mother in law thought she was some financial advising wizz and helped us plan how we could hand the keys back and disappear from the building society.... we thought we were being so smart and spent a couple of months planning our "disappearance" and then did it... moved and then dropped the keys through the building societies letter box with a letter pleading and apologising.

about 5 years later I had a strange call at work, a few weeks after that we had a knock on the door and a month later were sued by the building society for the £20k negative equity, interest, costs etc etc etc............ believe me they don't forget who owes them what and make sure they get their cash!!

Yep I have no plans of walking away, just hope, the now, ex doesn't.

[fatboy b]

If you rent out, will it cover the mortgage?

[Durruti]

swerni said:

morally she is libel for half the debt.
Legal they are joint and severally libel.
If they can't track down one party or one party is unable to pay then they will chase the person they can find or the one who is able to pay.

And there's your problem right there.

The sensible and morally proper thing to do would be to acknowledge that half the debt is hers and she will honour it. The delay in selling makes most sense.

What will happen is this - She has decided she wants out, she will move abroad as desired casually forgetting to let the lender have any contact details, leaving you holding the entire debt. The lender will pursue you for the entire amount as you are the easier option for them to come after - you being relatively honest and also in the UK.

You are about to receive the most thorough fking your wife has ever given you.

Sadly I've just seen this very same scenario played out with a colleague of mine.

SWT doesn't even start to cover some of these bhes.

[Road Pest]

Why is this in Homes, Gardens and DIY ???
Conversation last night hopefully got through and we'll keep the house off the market, thanks for all your input guys.

[scotal]

Road Pest said:

Why is this in Homes, Gardens and DIY ???
Conversation last night hopefully got through and we'll keep the house off the market, thanks for all your input guys.

If and when she goes abroad are you satisifed she will stay in contact?
Paying the debt and selling the house are both going to be a nightmare is your ex decides to drop out of sight.

[Road Pest]

scotal said:

Road Pest said:

Why is this in Homes, Gardens and DIY ???
Conversation last night hopefully got through and we'll keep the house off the market, thanks for all your input guys.

If and when she goes abroad are you satisifed she will stay in contact?
Paying the debt and selling the house are both going to be a nightmare is your ex decides to drop out of sight.

She has had the opportunity already to drop out. I believe she won't just drop out, it will be either sell the house, if at all possible, or stay with the commitment for the next couple of years and hopefully sell breaking even.