Complicated mortgage help
Discussion
Hi all, I have a problem that hopefully someone can offer some advice on.
A brief lead up:
Girlfriend was pushed in to being second person on an interest only mortgage with her mother about 6 years ago.
The mother is a vindictive and manipulative
who has been a constant restraint in my other halfs life.
The agreement always was that the mum paid for the mortgage (interest only) and there is also an unsecured loan with the same provider.
She has long stopped paying for the mortgage and loan, topped off by no longer paying my girlfriend back for a credit card that was lent to renovate the house but was actually spend on haircuts, Botox and other such crap.
Mortgage company took them to court 24 months ago and ruling was miss another payment and it will be repossessed.
She made a few payments then stopped but no action has been taken.
Girlfriend decided bankruptcy was the best way forward to remove her tie to the property and the credit card debt. This worked for the debt but thus far no action has been taken on the property and the mortgage company have said they have no immediate plans to repossess.
We both desperately want her name off the mortgage and are stuck for ideas.
So can anyone help?
Any blanks of information that's relevant please ask for! Thanks.
A brief lead up:
Girlfriend was pushed in to being second person on an interest only mortgage with her mother about 6 years ago.
The mother is a vindictive and manipulative
who has been a constant restraint in my other halfs life. The agreement always was that the mum paid for the mortgage (interest only) and there is also an unsecured loan with the same provider.
She has long stopped paying for the mortgage and loan, topped off by no longer paying my girlfriend back for a credit card that was lent to renovate the house but was actually spend on haircuts, Botox and other such crap.
Mortgage company took them to court 24 months ago and ruling was miss another payment and it will be repossessed.
She made a few payments then stopped but no action has been taken.
Girlfriend decided bankruptcy was the best way forward to remove her tie to the property and the credit card debt. This worked for the debt but thus far no action has been taken on the property and the mortgage company have said they have no immediate plans to repossess.
We both desperately want her name off the mortgage and are stuck for ideas.
So can anyone help?
Any blanks of information that's relevant please ask for! Thanks.
Sarnie said:
How many years are left on the mortgage?
Are you saying that you "want" the mortgage company to repossess the house, to release your other half from the property??
Who, if anyone, is currently paying the mortgage?
Does your other half live in the property?
Roughly 7 years left on mortgage, absolutely want the house gone or at least girlfriends name off the mortgage, no one has paid it for 18 months, and no one is living there now, mutt face was renting it out but it needs a new boiler and heating refurb and a serious roof repair so she can't attract a tenant. Are you saying that you "want" the mortgage company to repossess the house, to release your other half from the property??
Who, if anyone, is currently paying the mortgage?
Does your other half live in the property?
shake n bake said:
Girlfriend was pushed in to being second person on an interest only mortgage with her mother about 6 years ago.
We both desperately want her name off the mortgage and are stuck for ideas.
You can't just "take a name off" a mortgage. She's a joint owner of the property, and is liable for the entire debt if the mortgage is unpaid. The mother is probably not able to get a mortgage in her own name for the full amount - even if your gf was to just sign her part-ownership over - so it's not going to be straightforward. The only real way out is to get the place sold or repossessed.We both desperately want her name off the mortgage and are stuck for ideas.
TooMany2cvs said:
shake n bake said:
Girlfriend was pushed in to being second person on an interest only mortgage with her mother about 6 years ago.
We both desperately want her name off the mortgage and are stuck for ideas.
You can't just "take a name off" a mortgage. She's a joint owner of the property, and is liable for the entire debt if the mortgage is unpaid. The mother is probably not able to get a mortgage in her own name for the full amount - even if your gf was to just sign her part-ownership over - so it's not going to be straightforward. The only real way out is to get the place sold or repossessed.We both desperately want her name off the mortgage and are stuck for ideas.
If it was an IVA for the cc debt that is different
Willhire89 said:
If she was declared bankrupt with the mortgage company named I cannot see what the issue is?
She still jointly owns the property. The lender didn't repossess it at the time of that bankruptcy.Both lenders are jointly and severally liable for the entire debt - if it's repossessed, but there's a shortfall, they're still liable for it. If one can't pay, the other will need to.
TooMany2cvs said:
Willhire89 said:
If she was declared bankrupt with the mortgage company named I cannot see what the issue is?
She still jointly owns the property. The lender didn't repossess it at the time of that bankruptcy.Both lenders are jointly and severally liable for the entire debt - if it's repossessed, but there's a shortfall, they're still liable for it. If one can't pay, the other will need to.
Moominho said:
Can you not just sell the property, would the mum be willing to get involved with that?
Mother is determined to hold on to the property despite it being 20-30 in neg eg and needing a considerable amount spending on it to make it fit to live in. In regard to other posts: I think 2many2cvs is correct, a mortgage isn't automatically repossessed on bankruptcy, we were hoping it would force their hand but I suspect as they know it's in neg eg there's little point in repossessing it at this time.
I'd like to know if there's a way we can force the issue of repossession somehow?
If she does get it fit for renting again would notifying the lender that it's being rented cause a reaction from them?
TooMany2cvs said:
Willhire89 said:
How can she be liable for a debt - she's bankrupt?
She still part-owns the substantial asset that debt's secured against, remember?Should repossession be an automatic part of bankruptcy?
It would be their responsibility if there was a positive asset to liquidate it to cover the bankruptcy - you do not get to keep assets until and unless the debt is satisfied and in all likelihood if that was possible you would go down the IVA route instead.
A resolution of all assets is part of bankruptcy - if this is a negative asset then they join the list of any creditors identified go on the list to await any dividend.
Willhire89 said:
Anything and everything is all under the control of the Insolvency Service - she 'owns' nothing.
A resolution of all assets is part of bankruptcy - if this is a negative asset then they join the list of any creditors identified go on the list to await any dividend.
This is what I thought, a debt is surely a debt, but apparently it's not seen that way? I'd love for someone to say it's not seen that way at all. A resolution of all assets is part of bankruptcy - if this is a negative asset then they join the list of any creditors identified go on the list to await any dividend.
Willhire89 said:
Was this mortgage/asset declared to the Official Receiver?
If yes - then she needs to talk to the O R
If no - oh dear
Yes, it was declared. They said it up to the mortgage provider on how they wish to proceed. You seem to understand this process, does this sound correct to you? If yes - then she needs to talk to the O R
If no - oh dear
Does the daughter have a cause for action against the mother perhaps?
The agreement between might constitute a contract (the terms of which were that the daughter goes on the mortgage on the understanding that the mother was going to pay the whole debt) and that as a result of her actions of not paying it the daughter has suffered a loss after being forced into bankruptcy?
Any lawyerly types able to advise?
The agreement between might constitute a contract (the terms of which were that the daughter goes on the mortgage on the understanding that the mother was going to pay the whole debt) and that as a result of her actions of not paying it the daughter has suffered a loss after being forced into bankruptcy?
Any lawyerly types able to advise?
shake n bake said:
Willhire89 said:
Was this mortgage/asset declared to the Official Receiver?
If yes - then she needs to talk to the O R
If no - oh dear
Yes, it was declared. They said it up to the mortgage provider on how they wish to proceed. You seem to understand this process, does this sound correct to you? If yes - then she needs to talk to the O R
If no - oh dear
There will be a list of all the known creditors that she has made and they will be on it.
I assume the O R was saying that therefore it is up to them what they do given that knowledge that they have lost someone they can hold liable.
In my experience as soon as they know a petition for bankruptcy has been successful they lose interest and focus elsewhere.
One thing that occurs to me is that the extent of their full debt in her bankruptcy has yet to be determined until it is repo'd/sold which could prevent the O R finalising any dividend.
davepoth said:
Does the daughter have a cause for action against the mother perhaps?
The agreement between might constitute a contract (the terms of which were that the daughter goes on the mortgage on the understanding that the mother was going to pay the whole debt) and that as a result of her actions of not paying it the daughter has suffered a loss after being forced into bankruptcy?
Any lawyerly types able to advise?
...but the mother is potless - what's the point?The agreement between might constitute a contract (the terms of which were that the daughter goes on the mortgage on the understanding that the mother was going to pay the whole debt) and that as a result of her actions of not paying it the daughter has suffered a loss after being forced into bankruptcy?
Any lawyerly types able to advise?
Willhire89 said:
The mortgage company are effectively on notice that the liability no longer rests with your g/f but with the Insolvency Service and they are unlikely to receive any worthwhile dividend - all depends what assets they could liquidate - can be anything ....pensions you name it.
There will be a list of all the known creditors that she has made and they will be on it.
I assume the O R was saying that therefore it is up to them what they do given that knowledge that they have lost someone they can hold liable.
In my experience as soon as they know a petition for bankruptcy has been successful they lose interest and focus elsewhere.
One thing that occurs to me is that the extent of their full debt in her bankruptcy has yet to be determined until it is repo'd/sold which could prevent the O R finalising any dividend.
Where you say they lose interest and focus elsewhere, could you please explain what you mean?There will be a list of all the known creditors that she has made and they will be on it.
I assume the O R was saying that therefore it is up to them what they do given that knowledge that they have lost someone they can hold liable.
In my experience as soon as they know a petition for bankruptcy has been successful they lose interest and focus elsewhere.
One thing that occurs to me is that the extent of their full debt in her bankruptcy has yet to be determined until it is repo'd/sold which could prevent the O R finalising any dividend.
There are no assets at all on g.f part, the bankruptcy wasn't taken as an easy thing to except and months of deciding what should be done, it was more a way of taking back the control from evil Edna and making a clean fresh start, yet it's still like she has a hold.
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