Help please - Figuring out a Mortgage shortfall
Discussion
I am trying to understand how to work out a shortfall on a mortgage.
Mrs T was put under pressure by their adult child J and J's spouse M to remortgage their property to help J and M out of a hole with a significant amount of money. It was probably more than half the value the house.
It seems that there were previous attempts by J and M to control Mrs T's property and money.
The story peddled was that J and M were repaying the mortgage payment to Mrs T.
Documents show that J and M made less than half of the remortgage repayments to Mrs T, so Mrs T paid over half of the mortgage repayments from their own money.
J and M have repaid less than 80% of the equity taken took from Mrs T's house via the mortgage they organised.
I am trying to work out how much J and M owe Mrs T due to their non-payments of the mortgage payments they were supposed to be making. Is Number One or Number Two correct?
Number One - I can tell how much Mrs T paid in mortgage repayments and how much J and M didn't pay Mrs T which I call the shortfall.
Should J and M be held responsible for all of the missing mortgage payments and any remaining balance?
Or
Number Two - Should I subtract J and M's mortgage payments to Mrs T from the equity J and M took, the repayments are under 80% of the equity taken from Mrs T's house, and add that to the shortfall and any remaining balance?
It's a repayment mortgage.
Mrs T was taken advantage of but I don't want to make matters worse by choosing the wrong method to figure out how much J and M took from Mrs T by not covering the remortgage repayments I was told they were repaying.
Number Two adding J and M's repayments shortfall and the difference between what they've repaid and the equity they took works out around 7% more than the total forecast cost of the mortgage when it was taken out IIRC.
My legal advisor seems not much help on this.
Mrs T was put under pressure by their adult child J and J's spouse M to remortgage their property to help J and M out of a hole with a significant amount of money. It was probably more than half the value the house.
It seems that there were previous attempts by J and M to control Mrs T's property and money.
The story peddled was that J and M were repaying the mortgage payment to Mrs T.
Documents show that J and M made less than half of the remortgage repayments to Mrs T, so Mrs T paid over half of the mortgage repayments from their own money.
J and M have repaid less than 80% of the equity taken took from Mrs T's house via the mortgage they organised.
I am trying to work out how much J and M owe Mrs T due to their non-payments of the mortgage payments they were supposed to be making. Is Number One or Number Two correct?
Number One - I can tell how much Mrs T paid in mortgage repayments and how much J and M didn't pay Mrs T which I call the shortfall.
Should J and M be held responsible for all of the missing mortgage payments and any remaining balance?
Or
Number Two - Should I subtract J and M's mortgage payments to Mrs T from the equity J and M took, the repayments are under 80% of the equity taken from Mrs T's house, and add that to the shortfall and any remaining balance?
It's a repayment mortgage.
Mrs T was taken advantage of but I don't want to make matters worse by choosing the wrong method to figure out how much J and M took from Mrs T by not covering the remortgage repayments I was told they were repaying.
Number Two adding J and M's repayments shortfall and the difference between what they've repaid and the equity they took works out around 7% more than the total forecast cost of the mortgage when it was taken out IIRC.
My legal advisor seems not much help on this.
Edited by carinaman on Sunday 30th November 21:51
carinaman said:
Thank you for your response. I may ask the lender how they would work it out.
Not sure the Lender is the best person to ask to be honest and may raise some red flags on their side.The calculation should be simple.
What was the payment based on "standard" remortgage. What was the payment based on the actual remortgage. The "owe" should be the difference x term
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