Repossession, debt and a new mortgage... ?
Repossession, debt and a new mortgage...
These questions may have been asked before, but I have just been
searching google and UK Home Repossession (www.home-repo.org) and
cannot really find the info I'm looking for.... Hopefully you kind
people in here may be able to help? :)
Background Info
My partner left a previous b/f 6 years ago, along with a mortgage. The
previous b/f carried on with the mortgage payments, but the house was
later repossesed. She originally wanted to sign the house over to
him, but for one reason or another (in the end) didnt. She currently
does not know if there is any shortfall, but due to the low cost of
the house doubt there will be too much.
I, myself have been told I have an "excellent", "faultless" and/or
"exceptional" credit rating from various sources in the past. I
currently have a mortgage (in my own name) and have never had any
credit problems.
We now want to move house, therefore get another mortgage, we would
like to do this in joint names.
Onto the questions....
1, Is there a 'best' way to find out if any money is still outstanding
from her previous mortgage? (They have never chased her for any in the
last 3-4 years since the repo. but she has been too scared to find out
previously in case there is and she has to pay it all...)
2, If there is any, does this have to be paid in full, or could she
make a full and final offer?
3, They also had an endowment policy, which apparently is worth a
couple of thousand (cash in value). This apparently requires both
signatures to cash in but unfortunetly her ex appears to have
'dissapeared'. Is there any way of cashing this policy in to pay off
any shortfall with only one signature? Would the mortgage provider be
able to trace him, or is it fairly easy to 'dissapear' now days?
4, If we do go for a joint mortgage, and get turned down due to the
above repossession, will this affect _my_ credit rating and prevent us
obtaining a mortgage in my name only?
- If her name was on the mortgage, then I guess she may be jointly
liable for any debts. Do you think she hasn't been contacted because
they don't know where she lives ? This sort of information will be on
her credit record, perhaps she could run Equifax/Experian checks from
a different location (parents house?) to check without revealing her
current location (she may need to provide bills addressed to her at
this address). The credit agencies are likely to link any address
enquired about to the correspondance address. There may be a time
limit for the mortgage company to chase this debt (try
http://www.cml.org.uk/servlet/dycon/zt-cml/cml/live/en/cml/pub_inf
- I think they will record the fact that you applied. I don't think they
will record the failure because different mortgage providers have
different criteria - it's a commercial decision. I imagine
www.home-repo.org or linked sites will tell you.
Try searching the whole of uk.finance using a service like
http://groups.google.com/groups?q=uk.finance&hl=en for word like
repossession & arrears.
It might be worth searching the following Motley Fool boards :
Mortgage board : http://boards.fool.co.uk/Messages.asp?bid=50067
Dealing With Debt board :
http://boards.fool.co.uk/Messages.asp?bid=50079
or try the Citizens Advice Bureau (CAB)
- Another good site is www.debthelpuk.co.uk The forum board is always full of
excellent help & advice.