Complicated mortgage help

[Willhire89]

shake n bake said:

Willhire89 said:

....they focus on where they may yet be able to get a return which in this case is now the mother.

The door is basically closed with your g/f

So why not move to repo the house?

Don't know - but I would suspect they are taking a value call.

Mortgage companies can and do move very quickly when there is a default and there is equity available to cover their position.

When there's a potential big loss they may hold out hope of leveraging the mortgage holders by threat of repo instead of locking in their loss and chasing the shortfall - they are looking for any upside.

[shake n bake]

Willhire89 said:

Don't know - but I would suspect they are taking a value call.

Mortgage companies can and do move very quickly when there is a default and there is equity available to cover their position.

When there's a potential big loss they may hold out hope of leveraging the mortgage holders by threat of repo instead of locking in their loss and chasing the shortfall - they are looking for any upside.

That's what we've come to realise, without a benefit for them there is no point chasing lost money.

Any ideas on how to force their hand would be great, I want free of evil Edna and a clean start for us.

[Willhire89]

shake n bake said:

Willhire89 said:

Don't know - but I would suspect they are taking a value call.

Mortgage companies can and do move very quickly when there is a default and there is equity available to cover their position.

When there's a potential big loss they may hold out hope of leveraging the mortgage holders by threat of repo instead of locking in their loss and chasing the shortfall - they are looking for any upside.

That's what we've come to realise, without a benefit for them there is no point chasing lost money.

Any ideas on how to force their hand would be great, I want free of evil Edna and a clean start for us.

I think you are free - you have the Insolvency Service as a shield - they're in charge of all the old stuff now.

That is what bankruptcy is all about - she must observe all the requirements set by the O R until discharged - is it year?

[AndStilliRise]

Seems a little bizzare that OPs gf you would want to go bankrupt. From what I understand it lasts for years and then the chances of getting a mortgage or finance are severely limited. Would you know if she has put any money into the deposit for the house?

[shake n bake]

AndStilliRise said:

Seems a little bizzare that OPs gf you would want to go bankrupt. From what I understand it lasts for years and then the chances of getting a mortgage or finance are severely limited. Would you know if she has put any money into the deposit for the house?

Agreed but the mortgage hadn't been paid for two years+so her credit rating was so bad a lender wouldn't offer a pen yet alone anything to do with money. No money in to the house whatever, just her willingness to help and be taken advantage of.

[shake n bake]

Willhire89 said:

I think you are free - you have the Insolvency Service as a shield - they're in charge of all the old stuff now.

That is what bankruptcy is all about - she must observe all the requirements set by the O R until discharged - is it year?

Not according to the mortgage company, she rang for an update and they asked for a payment!

[Willhire89]

shake n bake said:

Willhire89 said:

I think you are free - you have the Insolvency Service as a shield - they're in charge of all the old stuff now.

That is what bankruptcy is all about - she must observe all the requirements set by the O R until discharged - is it year?

Not according to the mortgage company, she rang for an update and they asked for a payment!

They need confirmation of the bankruptcy - they clearly don't believe it has happened.

Quote them the number, date and the court and tell them to refer all correspondence to the O R

[davepoth]

Willhire89 said:

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?

To force her to flog the only asset she has - the house.

[Willhire89]

davepoth said:

Willhire89 said:

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?

To force her to flog the only asset she has - the house.

Unless I misunderstood it is worth >20k less than the mortgage - how does that help?

[Willhire89]

OP - be worth checking she is listed here: https://www.thegazette.co.uk/insolvency

The process is really controlled after court - make sure there is no confusion and it has happened and you are not being strung along

[cossy400]

Willhire89 said:

davepoth said:

Willhire89 said:

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?

To force her to flog the only asset she has - the house.

Unless I misunderstood it is worth >20k less than the mortgage - how does that help?

Bit late to the party here, but "how is it worth so much less than the mortgage"??

If its been said before I do apologise.

[shake n bake]

cossy400 said:

Bit late to the party here, but "how is it worth so much less than the mortgage"??

If its been said before I do apologise.

It's roughly 20-30k in neg eg with potential repair bills taken in consideration.

[anonymous-user]

Are you in Negative EQ?

Have you checked the LondonGazette, if so is your partner named?

Are both your partner and her mother in a position of bankruptcy (based on the above) or have they entered an IVA, I assume not as they are not making any payments?

Stating the obvious but if the bank move to repo and the forced sale yields a Delta between the sale price and outstanding your partner + mother are liable.

TBH this might be the best way, if proceedings have not officially started then the assets would still be under the control of your partner / mother; id move to auction the house ASAP and declare myself bankrupt and enter an IVA to cover the Delta.

Apologies if I have misread the OP, the info is a little disjointed!

ETA: a family member is quite in the know with these matters, provide a tad more information (PM if you want) and let me see what I can find out.

Edited by Trexthedinosaur on Tuesday 10th January 15:47

Edited by Trexthedinosaur on Tuesday 10th January 15:48

[shake n bake]

Trexthedinosaur said:

Are you in Negative EQ?

Have you checked the LondonGazette, if so is your partner named?

Are both your partner and her mother in a position of bankruptcy (based on the above) or have they entered an IVA, I assume not as they are not making any payments?

Stating the obvious but if the bank move to repo and the forced sale yields a Delta between the sale price and outstanding your partner + mother are liable.

TBH this might be the best way, if proceedings have not officially started then the assets would still be under the control of your partner / mother; id move to auction the house ASAP and declare myself bankrupt and enter an IVA to cover the Delta.

Apologies if I have misread the OP, the info is a little disjointed!

ETA: a family member is quite in the know with these matters, provide a tad more information (PM if you want) and let me see what I can find out.

P.m sent.