New Zealand Law
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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.