Joint Home Owner Refuses to Pay

A

Atreyu007

Registered User
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3
Hey,

I currently have a joint mortgage with a friend of mine for the last 2 years. He lost his job awhile ago and has decided that he no longer has the money to pay mortgage and would rather the bank repossess the house. I have told him that he can apply for mortgage relief and that we could apply for a 6 month break etc but he is having none of it. He basically wants out and even though it is affecting my credit history, he doesn't seem to care.

I have since started paying the full mortgage and intend to rent out the house and pay the rest myself. He no longer lives in the house and he said that he will remove his name etc from the deeds if I want him too.

My problem is that I do not earn enough to buy him out. I am happy to pay full mortgage, as I dont see any other option, but it annoys me to know that if I want to sell in 5 years, that he can come back to me after not paying it and demand any profit that he may be entitled too...

Can I do anything about this?
 
You need to get him off the deeds but you can't because you won't get a mortgage. In this case you should sell and cut your losses before it gets a lot messier. Why do you want to keep the house?
 
Contact your bank and explain the situation to them. You are jointly and severally liable for the mortgage but you should let the bank know the current situation.

You should explain to the bank that you want to transfer property and mortgage into your sole name.

Also do you have a co-ownership agreement with him in relation to the property?
 
If you can afford to keep paying the mortgage, and want to keep the house, it should be perfectly possible to either:

1. Get the bank to agree to the mortgage being in your sole name and get it transferred OR ( if bank do not play ball)

2. Get a written and legally binding agreement that will oblige you to make all mortgage payments and - subject to you having done so -will oblige your friend in the future to transfer his interest in the property to you on demand and upon you securing his release from the obligations of the mortgage.
 
Sounds like our friend has really screwed you over. If the house is in negative equity don't let im get away scott free by taking over the mortgage. You would be taking on his loss.

Make sure that he is aware that if the house is sold at a loss the bank will still chase him up for the difference. He can't just walk away and foget about it.
 
Joint owner has done a runner!

Hi All - at my wits end.

Took out a 305k mortgage 2 years ago with First Active. Fixed for 4 years. My friend (I use the term lightly) lost his job and decided to go and follow a dream of his... long story, not needed for this thread! In short he thinks he psychic. He decided that he didnt want to pay any more of the mortgage and wanted the bank to repossess our house. I work for a bank myself and no the importance of credit history. I also know that you can't just hand back keys and thats the end of it. After telling him all this he basically said "they can't get blood out of a stone"

Anyways I decided that after the 2nd month in arrears I would take over full mortgage payment. Its a constant struggle cos I only make 2k after tax and the mortgage is 1300. I'm in the process of getting it rented out so fingers crossed on that.

My questions is - is there any way that I can get him removed from mortgage/deeds. He's not returning calls and I dont know were he moved too. He did tell me though if it can be done he would agree to it. My fear is that I'll finally get this sorted and he'll turn around and want back in after me clearing arrears and paying mortgage since he had his psychic ephiphany. :)

I've been to solictor who said its up to bank and I've been to bank who said its upto solictor.

Any suggestions wud be greatly appreciated - - - btw, the saying "if you wanna know me, come live with me" is so true!
 
Re: Joint owner has done a runner!

Atreyu007 said:
I've been to solictor who said its up to bank and I've been to bank who said its upto solictor. !
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Well, neither the bank nor the solicitor can do anything unless you can first produce your friend, and he is willing to sign whatever needs signing.

But it should be perfectly possible to secure a situation whereby your friend immediately transfers his interest in the house to you. The part which requires the bank's consent is the release of your friend from his obligations to the bank - but if he is willing to 'long finger' this element on foot of your undertaking(s), then there is a clear way forward.

Alternatively, he can sign an agreement which legally obligates him to release the house in the future, once the bank likewise release him ( or upon the sale of the house).

My point is, there is more than one way to skin this cat; it is certainly possible to secure your position now - even if the bank won't play ball. If your solicitor can't see a way to do this for you, get another.

Expect to pay all transaction costs ( including cost of your friend being independently advised) for a total bill of perhaps €2,400.00 -€3,000.00 (ignoring any possible stamp duty here- I expect there won't be any if this is done right)
 
The issue of getting person off title while still on mortgage

Hi

I have also been advised by solicitor that they cannot change title deeds into my sole name without bank approval (and obviously ex approval). I think ex approval is organised - through divorce agreement but not anything signed beyond this yet - but the bank seem a bit clueless to the whole procedure. Would be great if anyone in the know could lay out the correct forms & procedures to follow when removing someone from title but not the mortgage as the issue with the approach of just a side agreement is that most of us don't want to have to be in touch again in 20 years when the mortgage is paid off to then try and change deeds.

Maybe a key post when we get the info on what options we have here when one party is willing to commit to all future mortgage payments but want to ensure they don't end up paying off mortgage to only have to give over half the house to ex in the future.

The above approach is, in the end, the only way for most people who are in negative equity and are getting divorced or similar to be able to move fwd without bankruptcy. This assumes they can afford to pay off mortgage -but still don't qualify for a full remortgage through the bank (with the new more stringent criteria).
 
Aw7666 said:
Hi

I have also been advised by solicitor that they cannot change title deeds into my sole name without bank approval (and obviously ex approval).

Hmmm With greatest respect I think your solicitor is wrong about the title deeds, I have recently gone through exactly the same situation with my ex. bascially there are two deeds 1. title deed to property 2. mortgage deed.
Once the partner is willing to play ball it is straight forward, in my case my ex signed a deed of transfer relating to the property disclaming all rights to the property- Ulster bank had no problem with this as it does not matter to them if one or both parties have ownership of the property because they bank always have first claim to the property regardless.

it is the mortgage deed which is a seperate legal document, that the bank will not let the parties out off to handy as this is the contract which gives the bank power to chase both parties jointly and severally for any money owing.
In my case the bank were agreeable to let me take my ex of the mortgage and keep my tracker, provided I could qualify for a mortgage in my own right, (which at the moment I can't) so for the present I gave my ex a deed of indemnity, absolving the ex from any liability for the mortgage and me agreeing to be fully liable until such time as I could afford to get my ex off the mortgage- NOW- a deed of indemnity for the mortgage does not prevent the bank from chasing my ex should I default on the mortgage, but it is the best legal protection/cushion that is available in a negative equity mortgage situation.
All of this was rubber stamped by the circuit court as part of a divorce deal- my best advice is anything is possible where the parties are agreeable
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beingfleeced said:
Aw7666 said:
Hi

I have also been advised by solicitor that they cannot change title deeds into my sole name without bank approval (and obviously ex approval).

Hmmm With greatest respect I think your solicitor is wrong about the title deeds, I have recently gone through exactly the same situation with my ex. bascially there are two deeds 1. title deed to property 2. mortgage deed.
Once the partner is willing to play ball it is straight forward, in my case my ex signed a deed of transfer relating to the property disclaming all rights to the property- Ulster bank had no problem with this as it does not matter to them if one or both parties have ownership of the property because they bank always have first claim to the property regardless.

it is the mortgage deed which is a seperate legal document, that the bank will not let the parties out off to handy as this is the contract which gives the bank power to chase both parties jointly and severally for any money owing.
In my case the bank were agreeable to let me take my ex of the mortgage and keep my tracker, provided I could qualify for a mortgage in my own right, (which at the moment I can't) so for the present I gave my ex a deed of indemnity, absolving the ex from any liability for the mortgage and me agreeing to be fully liable until such time as I could afford to get my ex off the mortgage- NOW- a deed of indemnity for the mortgage does not prevent the bank from chasing my ex should I default on the mortgage, but it is the best legal protection/cushion that is available in a negative equity mortgage situation.
All of this was rubber stamped by the circuit court as part of a divorce deal- my best advice is anything is possible where the parties are agreeable
Click to expand...

Thanks for this info - very useful.
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Hi - posting this here too. I am struggling to do what you suggest as my solicitor seems unable to contact anyone at Ulster Bank to allow this. I have a court order already which will allow me to transfer title into my name - so this should be fine. Is it true that the bank needs to approve it - as they are part of title - even if mortgage stays in two names? What solicitor/forms did you use to do the transfer? would be grateful for any advice.

Thanks
 
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