Paying the shortfall to bank after house is sold

Hi,
I was hoping to get some advise or thoughts on a situation. I was discussing my situation with my home being in negative equity, with friend. She then became upset as she was
Explain her situation, I apologise before hand that I don't as yet have a great deal of information as I did not press the matter with her too much.
She separated 2 years ago, at the time the bank told them to sell the house , as the house was in negative equity the bank told them they woanduld have to pay 250 each which would be review in 5 years. She was fortunate to be able to get social housing and has 3 children and she is full time mom on lone parents. She is in receipt of maintanece
But she says she was not in her right state when signing the agreement as she had lost the family home and was having terrible trouble with her ex husband. My heart went out to her it just seems so cruel that she lost her home and financially struggling. Again sorry for lack of figures. Any thoughts on the matter would be greatly appreciated

Do you have her permission to publish this information? You have probably provided enough information for her former partner to identify her so it is important you have her permission before you go any further.

Hi Ryan

It would be best to get her to post the full facts in the case study format.

She can't do anything about the loss of the family home two years ago. But if it was in negative equity then, it would be in much bigger negative equity now.

If it was jointly owned with her husband, it would have been a nightmare to sort out and she would be tied in to her husband for years to come.

The agreement to pay off the shortfall means nothing, as she was legally obliged to pay it anyway. Unless the agreement was more favourable to her than her legal obligation.

It sounds as if she is insolvent and should now apply for a Debt Settlement Arrangement with a very short period. If the lender vetoes this, then she should simply go bankrupt.

Thank you for your advise, of course this is like alot of situations I will pass on your suggestion of seeking advise.
Hopefully this will help.