What happens after a house repossession

[bancodegaia]

One of my relatives (not me honest!) is in a bit of a pickle over the situation with her ex-husband:
While still married, they were within 3 years of paying the mortgage off but were enticed by their building society offering to loan them ready cash against the house so they then borrowed a lot of money and lived the high life for a bit.
Situation now is they've divorced and both living with new partners.
The ex hubby lives in the house and can't afford to keep up the repayments on the loan secured against the house. Both of their names are on the mortgage/loan.
I believe the ex wife signed over the house to her ex hubby (the ex hubby tried unsuccessfully to get a mortgage in his own name)
The lendors have started proceedings to repossess the house. What happens to both of them now?
Ex hubby is getting married soon and is looking at going to live in the US.

Ex wife is worried that once he gets off, the full debt will rest on her shoulders. If the house is repossessed and does not realise the full amount outstanding on the loan what happens then?
She is also worried that she will be 'blacklisted' for any further applications for credit.
Told her she should have gone to the solicitor but would she listen?

[Loosehead]

They are both responsible for the outstanding amount. If the house fails to repay what is owed when it is sold they will pursue both (depending on who has what, not in equal measure) until they have recovered their money. As they have started proceedings, ie the payments have been missed then both have a bad credit record already. Repossessions have to be sold for a fair market price so unless there is no equity there is a good chance the lender will recover thier money, any balance will be refunded. If all the debt is indeed cleared then the credit records can be repaired.

The name on the land registry is irrelevant as far as the lenders are concerned they have a first charge and will do what they can to recover their money.

I am saddenned by the fact they where 'enticed' to borrow so much when they clearly where almost mortgage free.