Divorce and mortgage difficulties
Asking for a family freind. Hes going through a messy divorce. Hes wife has moved out and he been left with family house and paying all mortgage cost and bills. she will later come for half or even more of the house.
What can he do as he's struggling with payments. Its a joint mortgage but comes out of his sole account. She's trying to get him to carry on paying mortgage so she can benefit later from a sale. Hes got no where else to stay. Any options for him?
He has kids also.
Options are limited unfortunately.. A quick sale and split of the proceeds would be best but a messy divorce does not help..
He could request contributions and say he will stop paying the mortgage otherwise but this would also impact his own credit rating etc..
His ex will be happy to let him pay as she will know that not only will she benefit but if the kids will live with her after divorce she will probably get more of the assets than 50:50.
If your friend is not fussed re credit rating then stopping payments would really focus the exes attention including the fact it is impacting her rating etc. It would either force her to contribute or hurry along the divorce and stop some of the messyness..
Due to Covid banks are not taking litigation action until end of March and the process is not quick so there is no worry about repossession..
All the best.
Thanks. Apart from the house he has no other assets. Only a few grand in the bank.
One option could be him asking to pay interest only.
Interest only could be an option, however it is something that needs to be applied for and would need the ex to agree as they will both need to complete and sign application.. Changing to this would mean capital is not paid down which the ex may not agree with..
Probably worth speaking to the mortgage lender to discuss options and taking some specific legal advice, even if he just pays for an hour with a lawyer.
It is something that needs to be agreed, however, he could ask the mortgage company what they would do if he simply reduced his payment to cover the interest alone. Ultimately, the mortgage lender doesn't really care about the personal situation, and they really would rather not go through repossession if he simply defaults on the payments, so they may possibly agree without actually needing to do anything other than inform the ex that payments are in arrears - it's then up to her to decide whether she wants to make up the difference.