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friend helping out with mortgage


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Hi,

I think this is a legal issue.

 

In trouble with lots of debts and dealing as they surface. Got one CO on my house for £14000 I think.

 

House is either zero or negative equity.

 

Now a friend of mine has suggested she pay off £30000 of the mortgage and have a prorata share of the house as an investment or a loan ( will be my choice).

 

My question,

will she have to go on the mortgage( she doesnt want this).

If all fails and I walk away, she loses her money( she said don't worry) but is she liable for any outstanding amounts.

As she would be a co-owner, does that stop a compulsory sale for the CO.

 

Shes trying to help bless her, but don't want her to end up in the muck.

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If your friend wants to help you out, why not consider offering the creditor with the CO a reduced full and final settlement offer. If you are in negative equity paying nothing to this creditor, they might accept say £3k to pay off this debt in full and to remove the CO. A relative of mine paid off a £30k debt for £2k. Sometimes creditors prefer to take a percentage of a debt, rather than have to wait years to receive any money.

 

Once you get rid of this CO, you can decide what to do. Your mortgage company might not be willing to allow anyone to take a share in the house, whether on the mortgage or not. You would have to involve the mortgage company and fees may be involved.

 

I personally don't think it is a very good idea for your friend to be helping you out in this way, without you speaking to a qualified debt advisor. There may be other ways to deal with any debts, that allows you within a couple of years to get shot of them. If I were in your shoes, I would contact Stepchange with full details of debts and see what help they can offer.

 

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