VIC Bank Home Loan unsigned

[Ratty]

I have a home loan with Westpac with my spouse. I signed the contract but my spouse did not. Now we are basically but not legally separated. The home loan was taken out in 2009 at a fixed rate. How legal is this loan? My spouse and I don't want to have anything to do with each other, and as he is in a nursing home and unwilling to sign anything, what are my options?

 

[Rob Legat - SBPL]

How legal is the loan? No way to tell from the information given. But basic considerations that need looking at are: Are you both named as borrowers? Do you both own (ie on title) the home used as security? Does he have some other role (eg guarantor)?

 

[Ratty]

Yes to all of that, but not a guarantor. Looks like the loan would still be legal. Also he has paid off some of the loan but has since stopped. Thanks for your views.

 

[Rob Legat - SBPL]

Given that he's an owner of the security, and it's a house, Westpac would surely have taken a registered mortgage. And, if that's true, your spouse would have had to at least sign the mortgage or it would not have registered.

 

[Ratty]

Interesting that; will have to check again.
Your comments are most helpful.
Thank you

 

[Rod]

Even if the mortgage is deemed not valid for registration purposes due to a bank error, it is still likely you need to keep paying the mortgage or pay off the balance. If you received the money, then you need to pay it back. Not much you can do to avoid paying the bank one way or another.

What did you want to happen re: Ex and house?

 

[Ratty]

Many thanks, yes both parties are repaying the loan at routine intervals, with interest; the loan is being paid down so we just continue the way we are. Thanks for the help to clarify the situation. Appreciate your input.