Myself and my partner are going through a seperation. We have 2 houses between us. Both our names are on both mortgages although 1 house is owned by my partner. The second house is jointly owned. The house owned by her is worth 150 thousadn with a 90 thousand mortgage. The second house has a mortgage of 165 thousand and is worth in the region of 140 thousand. Both houses are mortgaged with the same people. The house which is owned by her is upto date with its mortgage payments. The second house i am thinking of having repossessed. Will this effect the other house? what are my options? we both have solicitors involved.
Hey nickb, welcome to the forum. I'm not really good with mortgages but a technical expert will advise you shortly. You're in the right place for good advice so hang in there. X
Hi
If she is on the mortgage of the house that is handed back and sold then she will be liable for the full shortfall,as both of you will.
The bank will come after her for the shortfall and if she has equity in the other property they may look for a charging order or bankruptcy
Please take professional advice on this matter
Regards
Hi thanks for your response. Let me get this right...the mortgage company will come after the second house to pay the shortfall on the house that is repossessed? after talking to the mortgage comapny on this they couldn't give me a straight forward answer although they did say that the 2 properties were not "linked" although i do not see what difference this makes. Surely if both properties are with the same mortgage comapny then if one house is repossesed then they will look at take the second property also. It also complicates the matter that she has two children living with her (9 & 13) will this cause the mortgage company to change there mind on taking the second property (i hope not)
They could do - as the repossession of the first property will leave you and your partner with a debt, which if you cannot pay it then the mortgage company will pursue other options - such as legal action which could result in a charging order being granted.
You would also need to check to see whether the mortgage company operates under an "all monies" policy which would give them the right to collect any shortfall directly against the first property.
how can i find out if the company operates under an "all monies" policy? is it something that i could ring up and ask them. How does an "all monies policy" work?
Have a look at the mortgage documentation that you signed up to, or pick up the phone to ask. I feel that this may be unlikely but forewarned is forearmed so to speak.
how does an "all monies" policy work...i am not quite sure how this will effect the situation. Sorry for sounding dumb. tried looking on the internet but can find anything
It means that if a lender, lends against a number of properties, and there is a shortfall in one account, that the shortfall can be added to the mortgages on the other properties, thereby reducing the equity in those to the extent of the shortfall. That's a fairly simplistic explanation, of quite a complex area of lending law, but I hope it helps for now.
The simplest way to check this out would be to ring the lender and ask.
Hi Nick
Be sure to take professional advice on this matter.
In the case of joint borrowings[mortgage,loans etc]both parties are liable for the full debt,not just 50/50
Regards
