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Unpayable CS payments

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Guys,

thanks for the help so far…I'm staring at another issue coming down the road at me.

Recently seperated, i'm required to continue to pay the mortgage.
I have calculate what the CS payments are going to be, BUT - here's the problem..

If you add the mortgage payments to the CS payment, I do not have enough $$ to pay both!!
(Let alone pay for food/electricity etc)

The simple flippant answer would be "sell the house". but selling houses is not an instant source of $$, such as shares etc.  Oh yeah, she has put a Caveat on the house, so I can't anyway!!

Any advice - can you apply to C$A for relief??
If you are not living in the house and the ex will not agree for mortgage payments to come out of child support payment then stop paying the mortgage. The C$A will not care if you are making other payments to the ex's benefit unless you have a written agreement with her that C$A approve.
Can't do that for 2 reasons:
1. I'm living in the house and
2. I cant change the repayments as the account is "both to sign"
Have you approached the bank and explained the situation? they maybe able to grant you some leniency on the re-payments for a period time.
All the accounts are "both to sign", so she has to agee - not likely…….

But looking at this from a philosophical point of view, is there a mechanism that can be used to reassess the impact and thus possible change the CS payment?
Is the ex wanting to live in the house as part of settlement? Can she afford the loan with your child support payments?

Your child support liability will reduce your borrowing capacity so if you cannot get greater care of the children then you will have to sell the house to stay afloat as the bank will knock you back on finance if you try to keep the house. You need to downsize or rent I think.

Last edit: by Fairgo

Talk to legal aid or someone else allong those lines about the accounting problem you have and that it would sent you into bankrupcy if you were to pay tha amount of CS.

Have your CS payment account frozen, ( Pronto )  untill such time that your case can be herd.

taylor - there is little he can do with C$A. If he cannot afford to pay his mortgage he will have to either let the ex take it over if she can afford if, get care of the children so the CS liability is reduced, or sell. As it stands he will probably have to sell to pay out the ex as it is obvious that he will not be able to borrow anything to pay her out and keep the house.
If there is no equitidy in the house then get her to sign it over or seel it with a debt by both of them.  

I dont know what is involved as I dont know the finacial whole story.

A similar senario happened to me 12 years ago and the judge rulled in my favour.
This happened to my husband when his ex had left. He had to pay for 6 children (CSA) and the mortgage, so when I first met him we lived off my wages as he had nothing left from his fortnightly pay. In retrospect, he realizes that he should have rented the house out to cover most of the cost of the house and then put it on the market. He never received any monies back from paying all the mortgage, and also was never re-imbursed from CSA. Even though there is a caveat on the house is it has to be sold due to the Family Separation then the caveat must be lifted (I guess you have to apply to the Family Court for this and depends why the caveat is on the house in the first place.) The other alternative is to stay in the house (pay nothing) until the bank throws you out and let it go to a mortagee sale (although this will give you a bad credit rating for 7 yrs which I am sure you don't want) as I noticed this happened to the house down the road and the bank took 6 months to evict the mortgage holder. Hope this helps.
whatbus,

is your ex paying their share of the mortgage? If the loan is in both names, then the ex is liable for their share. You may need to consider fast tracking your property settlement so you can get out of being soley responsible for the debt.

I agree you should contact your bank and advise them of your predicament. Banks are interested in keeping their clients and will often try to help. They may allow you to convert to "interest only" until your property settlement is finalised.

Tell them the ex is not paying their share of the debt. After all the debt is in joint names. You may be surprised how helpful they are.

I can guarantee that C$A will not do anything to reduce your payments. Its in their business charter to squeeze paying parents as much as they can. Dont waste time with them.

Things you can do to reduce your C$A payments without their help are:
get more care of the kids, reduce your taxable income, give the ex a reason to increase their income (which will in turn reduce CS you pay).
As far as I am aware (though this may depend on the bank?) whomever occupies the house is responsible for the mortgage. If the house is empty, and it cannot be agreed to put tennants in it, then BOTH have to pay the mortage. You can contact the bank at this point telling them that the house is unoccuopied, going though a divorce etc and state that you Can you get someone in to share the house with you to help pay the mortgage, or is selling an option?

"When we long for life without difficulties, remind us that oaks grow strong in contrary winds and diamonds are made under pressure"
If the mortgage is in both names, in the banks eyes both parties are responsible for the mortgage. Not occupying the property does not release anyone from legal obligations with a lender.

If the bank where to foreclose both parties would still be legally responsible and both would end up with a poor credit rating.

In the family courts eyes, if one party moves out, they may determine that the party need not have contributed to the mortgage, and adjust settlement accordingly however that doesn't release that partie from their legal obligations to the bank.

If you are in dire straights and your ex won't sign papers to have the mortgage payments reduced, then you could talk to a solicitor about applying for an urgent settlement. You could ask the court to make interim orders in relation to who pays what. The court would look at both parties situation before deciding what is fair.

You can also ask the court to place an injunction on the bank themselves to stop the bank foreclosing until settlement is decided. The courts do have the power to make orders and injunctions that affect third parties like banks.
Frenzy said
If the mortgage is in both names, in the banks eyes both parties are responsible for the mortgage. Not occupying the property does not release anyone from legal obligations with a lender.

If the bank where to foreclose both parties would still be legally responsible and both would end up with a poor credit rating.

In the family courts eyes, if one party moves out, they may determine that the party need not have contributed to the mortgage, and adjust settlement accordingly however that doesn't release that partie from their legal obligations to the bank.

If you are in dire straights and your ex won't sign papers to have the mortgage payments reduced, then you could talk to a solicitor about applying for an urgent settlement. You could ask the court to make interim orders in relation to who pays what. The court would look at both parties situation before deciding what is fair.

You can also ask the court to place an injunction on the bank themselves to stop the bank foreclosing until settlement is decided. The courts do have the power to make orders and injunctions that affect third parties like banks.
 

Frenzy - I have a very good friend who was in this situation and they spoke to numerous legal services and the bank and the information I have put before is what they were given. Yes youa re right in that legally and totally BOTH are responsible, but as far prior to the porperty settlement in a divorce matter, then the person who occupies the house is the one responsible for the mortgage at that time. Then percentages etc are worked out at time of settlement. If the couple can work some arrangement that both pay thgouh only one resides in the property then thats great.

"When we long for life without difficulties, remind us that oaks grow strong in contrary winds and diamonds are made under pressure"
Yes youa re right in that legally and totally BOTH are responsible, but as far prior to the porperty settlement in a divorce matter, then the person who occupies the house is the one responsible for the mortgage at that time. Then percentages etc are worked out at time of settlement. If the couple can work some arrangement that both pay thgouh only one resides in the property then thats great.
Yes that is settlement. The family law ramifications and lender ramifications are 2 very different things. If mortgage repayments are not made and there is a default on the mortgage the bank is entitled to sell the property. They don't care whether the default is because you or your ex didn't pay their share cause one of you wasn't living in the house. A court order / injunction, is the only thing that can alter the banks legal right to hold both parties responsible for the debt. 
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