Mortgage and secured loans

[WeaponisedFork]

Good afternoon

my ex and I broke up around 6 years ago. We had a mortgage together and a secured loan from welcome finance.

We are now 13 years into the 25 year mortgage and when we seperated we agreed that I would pay the welcome loan. And my ex would pay the mortgage.

However in December last year. She dropped the bomb on me that she had not been paying the mortgage for the last 6 months and the mortgage company (Leeds building society) had sent her a letter evicting her and they were going to take the house from her.

Anyway. I bailed her out and paid the £1800 to help her get back on track. However. Since then she hasn't paid anymore again and has moved out to a house 2 doors down the street. she has sent a letter with the house keys back to the mortgage company saying she cannot pay any more.

What position does this put me in now in regards to the welcome finance loan? Am I paying money for nothing?

thank you in advance for any advice.

[Amethyst]

Re: Mortgage and secured loans

Are you still on the mortgage and do you want to keep the house?

[WeaponisedFork]

Re: Mortgage and secured loans

Hi there

no I don't want to keep the house. The only reason I paid the £1800 was to keep my son from having to move from his home. But once I had paid she moved out anyway.

Yes I am on the mortgage.

Thanks

Just want to add. I am still paying the welcome loan. And up to date.

[Amethyst]

Re: Mortgage and secured loans

Okay just checking.

If the mortgage is joint you will be jointly and serverably liable for any shortfall as your ex. Is there equity in the property to counter a repossession sale price?
The agreement between you and your ex regarding the loan and the mortgage - was that a formal order through the court or an agreement between yourselves privately.
Is the Welcome Loan a joint loan as well ? That will probably be in the same position and either you or your ex could be chased for the balance.
What should happen when the house is repossessed and sold is the mortgage company will take its share first and then welcome would take its share, before you or your ex got any equity - but in most cases where keys are just handed back - there isn't any equity anyway and shortfalls need to be made up.

How much is the Welcome Finance Loan for ?

[WeaponisedFork]

Re: Mortgage and secured loans

Yes they are both in joint names. There is about 45k outstanding on the mortgage and around 3-4k on the welcome.

my ex has now handed the keys back and gave the mortgage company a forwarding address for her. But it's been a while now with no reply (or so my ex says, although she hid the fact she hadn't been paying for 6 months before)

do I need to continue paying welcome and/or send them a letter of some sort?

[Amethyst]

Re: Mortgage and secured loans

I would contact the mortgage lender and find out what the situation is, the mortgage is still in your name so you have the right. Is there much equity in the house?

Keep up payments on Welcome until the house issue is sorted.

[WeaponisedFork]

Re: Mortgage and secured loans

I doubt it :-(

i have not not been able to see the state of the house.

I I would assume the house is worth around 60-70k

[Amethyst]

Re: Mortgage and secured loans

Okay so once repo costs and arrers and fees are added and the lowered repo sale price, there's not going to be much left to pay Welcome. I'd still give the mortgage company a call and check what the actual situation is with it so you have a better idea from the horses mouth as it were. You can ask them for copies of all documentation sent out to come to you as well as your ex, and you can also ask them for copies letters sent out to date.

If you're up to date with Welcome then I'd keep paying it, if they lose the security (ie the house) and don't get paid out of the proceeds, and you stop makig payments, you'll be looking at a massive extra whack of charges and fees and a CCJ.

[WeaponisedFork]

Re: Mortgage and secured loans

Ok thank you for the advice. In the meantime should I make welcome aware of the situation as well?

[Amethyst]

Re: Mortgage and secured loans

I'd wait until you know exactly what is happening as you don't want to nudge Welcome into recalling the debt.

[WeaponisedFork]

Re: Mortgage and secured loans

Ok thank you again :-)

[WeaponisedFork]

Re: Mortgage and secured loans

Sorry - 1 more thing. How long do things like this take to be sorted?

[Guest]

Re: Mortgage and secured loans

Hi Just spotted this thread.

It is worth checking that welcome have actually registered the charge if you haven't already.
Just been discussing this funnily enough elsewhere, but you can do it online instnantly for just £3 via the land registry website

[WeaponisedFork]

Re: Mortgage and secured loans

Hi there. Thanks for your input. Where do I do this? And what would it mean if welcome haven't registered the charge?

[Guest]

Re: Mortgage and secured loans

Hi there. Thanks for your input. Where do I do this? And what would it mean if welcome haven't registered the charge?

https://eservices.landregistry.gov.u...roperty_Search

It means that they would have all kinds of trouble if they wanted to enforce, also it would mean that you would have extra equity.

In other cases debtors have negotiated extremely favorable full and final settlements when agreements have not been properly secured.