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jodavis
Starting Member

2 Posts

Posted - 15 June 2011 :  17:02:00  Show Profile
Hi,
My Ex recently walked out on me, leaving me with a mortgage, secured and unsecured debt. I am considering voluntarily surrendering my home, as I can no longer keep up with the payments. My name is not the only one on the mortgage - there is another person who hasn't lived at the property for 5 years and hasn't contributed financially for the same amount of time and doesn't even live in England. I have no contact with this person. As their name is on the mortagage, I would imagine that they are still responsible for payments, so if I handed my share of the house over, so to speak, would the responsibility then fall to the other person? I am not sure of the value of the house or even if there is positive equity in the property, but what would happen to my secured loan if I handed the keys back? If after the mortgage lender sells the property and I still owe money, what could they do to me?
Any advice would be really appreciated.
Thanks
Jo

Amy Jellings
Debt Diva Expert



110 Posts

Posted - 17 June 2011 :  10:11:41  Show Profile
Hi jodavis.

Welcome to the forum; I'm sorry it has taken us a little time to reply to you.

I'd suggest that you discuss the repayment issue and background circumstances with the mortgage lender. That will enable you to work together on finding a solution.

In general it will be better if you sell the property yourself. It's likely to fetch a higher price than a mortgage lender putting a property through an auction or otherwise looking to sell it quite quickly.

This could even result in a surplus and you taking some money away. At the very minimum it should reduce any shortfall on the mortgage if the house is sold below the value of the mortgage.

If there is a shortfall (because you or the mortgage lender sell the property below the value of the mortgage) each of the persons on the mortgage can be chased by the lender for the full amount of that shortfall. While they will want to agree a repayment plan with you, they can use the usual legal debt recovery measures if that isn't achieved.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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jodavis
Starting Member

2 Posts

Posted - 17 June 2011 :  16:09:37  Show Profile
Hi,
Thanks for the reply. I have considered selling the property, but while it is on the market, I would still have to meet the mortgage and secured loan payments, which I can't afford. As there are two people's names on the mortgage, even though the second person is an uninterested party, could I not have my name removed from the mortgage and hand all rights of the property over to this other person? In other words, forfeit my share.
Thanks
Joanne
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Amy Jellings
Debt Diva Expert



110 Posts

Posted - 17 June 2011 :  18:27:20  Show Profile
Hi Joanne.

The mortgage lender may be prepared to work with you while you sell the property. That's one of the reasons why it would be good to start talking to them.

Don't confuse ownership of the property with being named on the mortgage as they're two different things. I doubt the mortgage lender will want to take your name off the mortgage as it reduces their security in a number of ways. No harm in asking though.

Amy Jellings
Bright Oak
Debt Advice & Debt Management
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