House repossession

[Elsieb]

Please be kind I'm new to this.
To make a long story short. I fled domestic abuse 2.5 years ago with my ex threatening to ruin me financially. Well he's kind of succeeding! My problem is the joint owned property.
I am strangely desparate for the bank to repossess this house because since I left he has refused to pay any morgage. I personally cannot pay. I am having to rent and support two children with no help from him. He remains in the property which is now two and half years in arrears!! In sept 14 the court ordered a suspended possession. He went on to pay three months morgage payments but has again paid nothing since since Feb 2015.
I have begged the bank to take action. I am facing bankruptcy due the arrears now reaching £44000 including all the charges. I have written to the bank and spoke with the case worker directly with no sign of movement.
My ex is refusing to sell the house and is a very unreasonable man. I am stuck in this awful situation.
Any support or advice would be great. I can't believe that a bank would allow a morgage to go 2.5 years in arrears with very little action.
Is there anything I can do.
House according to zoopla is valued 340000-369000. Morgage is 315000. So I am potentially facing a shortfall following the sale with all the arrears that need to be paid.

[Openlaw15]

Re: House repossession

Hello there, elsie Happy new Year

I have some ideas but to be honest I too am very confused as to why the bank won't repossess already. A suspended possession order means the bank has possession order and any time it choose can evict your ex. Does anyone live with him, ie other children, a girlfriend? What is the name of the bank? Your ex is hanging on that property by the skin of his teeth quite literally. The only remedy open to him is to stay an eviction (delay it etc). So, if I may be so blunt, what aren't you telling us?

[Elsieb]

Re: House repossession

Happy new year. Thank you for your response. I really do not know what I am not telling you.
He moved a girlfriend in very quickly after I left. There are no children living there.
The bank is Barclays/ woolidge BS.
I have spoken to the director of support services at the bank who assures me that they want to evict him and are putting a case together to present to court!! I am so lost with this process. After I complained to them they said that they would keep in touch with me more but they haven't. I told the bank that their lack of action was putting me at significant financial risk. What should I do next to make them do something??

[Debt Camel]

Re: House repossession

So I am potentially facing a shortfall following the sale with all the arrears that need to be paid.

Yes you are. After repossession I would be surprised if the house is sold for more than the minimum range you have quoted and it could well be less.

Do you have any other debts?

If you do, then one practical suggestion to end this mess and get a clean start is to go bankrupt now. This will wipe out your mortgage debt regardless of when / if the property is repossessed and then sold at a shortfall. You don't have to wait for this shortfall to be established before going bankrupt.

[Elsieb]

Re: House repossession

Thank you debt camel for your response. I have read and read about bankruptcy so I am prepared for that. Yes there is other debt I'm afraid. I guess at nearly 50 years old I was hoping to avoid this route but feel I may have no choice.
When I spoke to the director of support services at the bank she told me that any short fall would be just wiped out and forgotten!!! Could this be true. I was shocked to hear her say this. Does this ever happen??

[Debt Camel]

Re: House repossession

When I spoke to the director of support services at the bank she told me that any short fall would be just wiped out and forgotten!!! Could this be true. I was shocked to hear her say this. Does this ever happen??

Well it doesn't matter if it EVER happens, what matters is whether it is likely to happen in your case. I am afraid I wouldn't trust anything like this which is said to you on the phone. If the bank will put this in writing, that would be different. I'll eat any hat you care to provide if they will do this...

Aged 50, with debts, you have little or no chance of ever getting a mortgage even if this shortfall isn't chased. I assume you aren't working in a job that would be affected by bankruptcy or you would have mentioned this. It is very likely that bankruptcy is your best option in which case the sooner it is done the better. I don't know what your pension arrangements are, but if you have a defined contribution pension, then it can be argued that it may be better to go bankrupt before the age of 54 as then your pension is completely protected.

You say you have read up on bankruptcy - have you talked to a debt adviser about your situation? You may find my guide useful: http://debtcamel.co.uk/debt-options/...to-bankruptcy/

Don't be like this person http://www.legalbeagles.info/forums/...f-repossession - now his case isn't the same as your as he had a mortgage with a sub-prime lender. But the simple fact is that if he had gone bankrupt when the house was repossessed (or before) then his bankruptcy would now be long past and he wouldn't be in his current difficult situation.

[Elsieb]

Re: House repossession

Thank you debt camel. I have also read your information. You put it so simply. It makes a good informative read.
Please can you advice regarding my pension. I am a nurse In The NHS and have a good pension with them. I can should I wish retire at 55 full pension with a lump sum too. I read that my pension will not be affected by bankruptcy is this correct??

[Elsieb]

Re: House repossession

Dear debt camel I have just read some of your advice on pensions and think I now understand my position. Thank you.

[Debt Camel]

Re: House repossession

The pensions / bankruptcy situation is complicated. At the moment a NHS pension would not be affected if it is not being drawn even if you are over 55. However there is a court case coming up later this month which has the potential to change this, although if it does, the Insolvency Service may then decide to change the rules...

[Elsieb]

Re: House repossession

Ok thank you debt camel.

[Openlaw15]

Re: House repossession

Please be kind I'm new to this.
To make a long story short. I fled domestic abuse 2.5 years ago with my ex threatening to ruin me financially. Well he's kind of succeeding! My problem is the joint owned property.
I am strangely desparate for the bank to repossess this house because since I left he has refused to pay any morgage. I personally cannot pay. I am having to rent and support two children with no help from him. He remains in the property which is now two and half years in arrears!! In sept 14 the court ordered a suspended possession. He went on to pay three months morgage payments but has again paid nothing since since Feb 2015.
I have begged the bank to take action. I am facing bankruptcy due the arrears now reaching £44000 including all the charges. I have written to the bank and spoke with the case worker directly with no sign of movement.
My ex is refusing to sell the house and is a very unreasonable man. I am stuck in this awful situation.
Any support or advice would be great. I can't believe that a bank would allow a morgage to go 2.5 years in arrears with very little action.
Is there anything I can do.
House according to zoopla is valued 340000-369000. Morgage is 315000. So I am potentially facing a shortfall following the sale with all the arrears that need to be paid.

Thank you for providing this information Elsie, you see I was being cautious because my general intent it is keep families in their home not help them lose it.

*** NB: Alternatively to the information provided below, you can ask the judge for an order for sale legally in your own right without waiting for the bank to move its proverbial arse. I'll explain this another post if you're interested **

Summary: sever joint tenancy; bankruptcy not necessary.

Joint Tenancy/ severance

What a joint tenancy means for you is that it must be severed before you (or your ex) have a share to sell: s.36, Law of Property Act1925 (LPA). It's legally like the property is stuck to you both - you both own the property between you but individually until severance you have no individual share. Formality: delivered in writing to tenant's address. NB: This may be the reason why the bank is finding it difficult as banks are seemingly reluctant to repossess properties where they're affected by joint tenancies (owing their solid protection).

Debt

The property value is estimated at £340,000 - 369,000 (29k significant difference), so before mortgage and debts your interest is worth approx. £170,000-184,500. Of the £315,000 mortgage, you're responsible for £157, 500. The arrears are £44,000 so you're responsible for £22,000. In total, £157.5k + 22k = 177.5k debts. Depending on sale price, you will have either of the following approx. debts/ credits, respectively: £7,000 debt, low range price (ie, on 170k); no debt, middle range; £7,000 credit, high range (188k). So in your situation bankruptcy does not seem necessary if you were to secure a price in said value ranges. NB: Bank has duty to obtain the market rate, ie cannot auction a property normally. So if you could hold out longer for a fair sale it may be in your interest.

[Elsieb]

Re: House repossession

Dear Openlaw. Thank you so much for your response. I guess it is a strange situation that I actually want this house repossessed.
Unfortunately I cannot deal with my ex. Lots of police involvement and I currently have a non mol in place to protect me and the children. He doesn't even respond to my solicitor except to complain about them!
When I first left my solicitor sent a letter regarding severing the joint tenancy. He refused to sign this. Does he need to or can it be severed by myself alone??
I really appreciate your advice.
It is interesting that I can a ask the judge myself. Please can you provide further information.

[ostell]

Re: House repossession

Unfortunately the debt will not be shared between the two people by dividing by 2: the bank will come after whoever they reckon they have the best chance of getting the money from. Repossession means just that, the property reverts to the lender who will probably auction to get their money back, and are not too concerned about what funds they get. The shortfall will be claimed from the original borrowers, and not 1/2 each.

Camels suggestion is probably the best in the circumstances, especially considering you have other debts. Get in first so that your partner doesn't go bankrupt first and the bank look to you for all the debt outstanding.

"Thank you for providing this information Elsie, you see I was being cautious because my general intent it is keep families in their home not help them lose it. "
Please note the OP did say she has not been living in the property for 2 1/2 years.

[Openlaw15]

Re: House repossession

The property will be sold and Ops/ money will be divided between them both after the mortgage/ debts have been paid. The bank is interested in selling property to free investment in the property to invest in other properties (ie offer new mortgages and make plenty of money).

[Openlaw15]

Re: House repossession

Dear Openlaw. Thank you so much for your response. I guess it is a strange situation that I actually want this house repossessed.
Unfortunately I cannot deal with my ex. Lots of police involvement and I currently have a non mol in place to protect me and the children. He doesn't even respond to my solicitor except to complain about them!
When I first left my solicitor sent a letter regarding severing the joint tenancy. He refused to sign this. Does he need to or can it be severed by myself alone??
I really appreciate your advice.
It is interesting that I can a ask the judge myself. Please can you provide further information.

The law says when notice of severance of the joint tenancy (or by JT's solicitor) is delivered by post (so recorded delivery is best) to the named joint tenant's normal abode (ie address), the JT is considered severed. If your solicitor has done this then the JT is considered severed, legally speaking.