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House sold with negative equity

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  • 27-01-2009 10:25pm
    #1
    lmcd
    Closed Accounts Posts: 1 ✭


    Hi This is my first post and not sure if this is the right place for this.
    Also asking the advice on behalf of a friend.

    My friend is in the middle of splitting up with her husband, with whom she has a house.

    If a house is put on the market and is actually sold, but the money from the sale is less than the balance of the mortgage, are both parties liable for the remainder of the mortgage to be paid to the bank?

    Is it possible for the bank to allow one person to be liable for the debt if directed as part of a separation by a solicitor or court or can the bank object to this and ensure both parties pay?

    While the house is on the market do both parties have to pay the mortgage or do the bank care who pays once they get their money?


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    #2
    Show_me_Safety
    Closed Accounts Posts: 280 ✭✭Show_me_Safety


    lmcd wrote: »
    Hi This is my first post and not sure if this is the right place for this.
    Also asking the advice on behalf of a friend.

    My friend is in the middle of splitting up with her husband, with whom she has a house.

    1 If a house is put on the market and is actually sold, but the money from the sale is less than the balance of the mortgage, are both parties liable for the remainder of the mortgage to be paid to the bank?

    2 Is it possible for the bank to allow one person to be liable for the debt if directed as part of a separation by a solicitor or court or can the bank object to this and ensure both parties pay?

    3 While the house is on the market do both parties have to pay the mortgage or do the bank care who pays once they get their money?

    i believe these are the answers, altho im open to correction from others

    1. if both are named on the mortgage then both a liable, the remainder will be in the form of an joint unsecured personal loan and assessed as that accordingly or secured on some other asset.

    2. yes, but that the single person repaying will be assessed.

    3. from my experience, once its paid it doesnt matter by who. if one party is not paying-up, the bank can't do anything to enforce both parties to pay equal parts. i only some or none is repais then the bank will go after both parties.


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