BTL mortgage default and bankruptcy: can they come after family home owned by spouse?

[CaththeConsumer]

Can anyone help please? Man bought investment property up north in 2008. Interest only mortgage with BoS. Major negative equity. No prospect of repaying principal and monthly payments are eifficult as wife (main breadwinner in past) not working due to redundancy and latterly illness. BTL was bought by man without wife's input or permission as BTL. Wife owns family home.

Bank refuses to negotiate amd has commenced proceedings.

1. Can man hand back keys to house? If so, understand they will sell the house. Presumedly they just come after the difference between amount owed and what they get for house? And importantly...who is responsible for ongoing council tax, insurance, etc? Does man get black mark on credit file? (Wife's family ie third party would pay money owed.)

2. Does anyone have experience with banks? Do they eventually negotiate?? If so, when? Courtroom steps?

3. If man is forced into bankruptcy by bank or declares self bankrupt, can bank come after family home owned by wife (and always owned by wife x 10 years and prior home too)?

thanks in advance for any help....

[Epiphany]

Re: BTL mortgage default and bankruptcy: can they come after family home owned by spo

I tried to negotiate with Lloyds on a personal guarantee for a business loaN - wasn't BTL but residential property. I paid back arrears after begging family member to save my home ( they asked their family member to help me!) they offered some time but it wasn't long and they enforced the sale of my home within 90 days of original court hearing because they wanted the whole lot back and not happy as I had defaulted. This was despite me telling them and with GP evidence I had suffered depression to being bereaved three times in 6 months and was unable to get the business off the ground. I have defaults too :-(( So negotiating is not their forte no! If you want some advise find a cash buyer for the property something I wasnt aware of doing at the time ( i have a friend who buys for cash now) and save the pain of it all . You may need to sell below market value though
but at least the credit file will be intact

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sorry - I havent been able to answer your personal situation - It sounds as if the home cant be touched as its not in his name and wasnt
given as a personal guarantee ?

[Streetwise]

Re: BTL mortgage default and bankruptcy: can they come after family home owned by spo

Can anyone help please? Man bought investment property up north in 2008. Interest only mortgage with BoS. Major negative equity. No prospect of repaying principal and monthly payments are eifficult as wife (main breadwinner in past) not working due to redundancy and latterly illness. BTL was bought by man without wife's input or permission as BTL. Wife owns family home.

Bank refuses to negotiate amd has commenced proceedings.

1. Can man hand back keys to house? If so, understand they will sell the house. Presumedly they just come after the difference between amount owed and what they get for house? And importantly...who is responsible for ongoing council tax, insurance, etc? Does man get black mark on credit file? (Wife's family ie third party would pay money owed.)

2. Does anyone have experience with banks? Do they eventually negotiate?? If so, when? Courtroom steps?

3. If man is forced into bankruptcy by bank or declares self bankrupt, can bank come after family home owned by wife (and always owned by wife x 10 years and prior home too)?

thanks in advance for any help....

Bank will appoint L.P.A. receivers,who will insurer the house but add it to what your due.
If family home not security for BTL and not in your name,it should not be affected.