Mortgage Guarantor

I have my father as a mortgage guarantor with joint signed / no title status. I have a little uncertainty regarding how this applies in law and if the worst came to the worst how his liability is measured?

Did your father sign as a Guarantor? or did he sign for the Mortgage?With no title status, I assume he did sign as a guarantor.

If he signed solely as a Guarantor, you need to ask whether he was fairly informed before signing for you. If he was not properly advised that would seriously limit the enforcement strength of his guarantee on a worse case scenario.

Come on please, the rebuttable presumption surely has to be that the dad knew exactly what he was doing and made a choice to help his offspring. If he genuiely signed without having a clue what he was signing then fair enough he may seek to argue otherwise. But if the question is now being asked some time/years later in a situation where there is negative equity (only guessing there might be) and the owner is considering what happens if they walk away or in a worst case scenario - then the Guarantor issue comes into play.

What exactly is the question being asked and what is the context? I think that will help to allow a far better understanding and help with responses.

Gerard123;

I could only answer the question asked.
I didn,t yet want to go into presumptive scenarios.

You are correct,if Roadrunner wants a value response we need context.
Roadrunner, give us the context please.

To answer your question Gerry, he would have signed as guarantor but had no title.

OK, well cards on table and judgments spared please. I have been considering a move to the UK to avail of Bankruptcy. I bought in late 2006 and have of course suffered about 60-70% decline in value of an apartment. I owe twice the value of the unit and I am tied into ever escalating management fees as other unit owners / investors will not pay.

I have always operated in the black but feel like being the eternal 'worker bee' is a waste of my life for the next 25 years. I have been brought to the point of sickness with developers being able to 'ring fence' development debt in the property casino of 5 years ago and still look out form their 'principal private residence' and Merc.

I understand and subscribe to the social responsibility of a citizen, however I also have one spin through life!

My question is about the recourse back to my father under the co signed no title arrangement and how the bank would pursue if I went this route?

I presume you mean your father is guarantor on the mortgage but is not on the property title? If so then he is on the hook if you don't pay, he would have met with a solicitor when signing the documents as well as the bank so it would be a bit difficult to claim now he didn't know what he was doing.

Either way what is his financial position? Is he a good target for the bank to pursue, that is what they will make their decision on.

Wbbs, he would have 80% home equity but has taken a huge income whack like a lot of people so he is only paying bills.

The worst day of my life was the day I signed that mortgage. I enslaved myself!

And your father too....

RoadrunnerLK said:

.. judgments spared please....

I have been brought to the point of sickness with developers being able to 'ring fence' development debt in the property casino of 5 years ago and still look out form their 'principal private residence' and Merc.

Click to expand...

If you want us to spare you the judgments, please spare us the judgments as well.

It's fairly simple. The bank would not have lent you the money they lent you without your father's assistance.

You can go bankrupt in the UK, but the bank will get a judgement (sorry - but there is no other word for it) against your father and register it against his home.

Brendan

Well Brendan, I won't let that happen! I had better shut up and serve and give up any hope of any reprieve from this. I will pay all taxes present and future and maybe when I am 56 years old and i have finally paid for a 2 bed apartment I can be happy! There is a lot of us out there locked into this scenario!

Hi RoadRunner

Your repayments are probably lower now than when you bought.

You are in deep negative equity, which will last a long time, but not forever.

Brendan