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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 23065
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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If an innocent party in a co-ownership of a house that has

Customer Question

If an innocent party in a co-ownership of a house that has to be sold as mortagee sale because the other owner got into financial debt with their taxes - will the innocent partner have a problem with their credit rating please.
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.

Unfortunately yes, once there is a default on a mortgagee sale the bank can choose to log both parties or either as defaulting mortgagors. So you need to talk to the bank, and requested that they do not report you as a defaulting payer, because it was your partner who caused the problem, but that you did not have the resources to buy the partner out, and prevent the mortgagee sale. The bank may agree to this, but if they do not, then you may have to go to the next step of checking with the credit agencies, and requiring that there is a note beside your credit rating that identifies that it was your then partner who caused the problem. The problem with joint and several liability under a mortgage, is that your own liability remains even if your partner causes the problem which results in the default.