| T O P I C R E V I E W |
| david_j |
Posted - 30 June 2008 : 17:57:18
I have a buy to let property which is a part of my debt problem. I have borrowed on it to keep myself above water, It has a terrible damp problem and I have spent £1000's trying to solve the problem with no joy.
One winter and any tenant wants to move on at end of their lease. I have been paying over £250 PER month above what the mortgage is since Northern Rock put me on there standard variable in Dec. Also it was empty for six month last year, I was paying full mortgage with no income. It is also now in negative equity.
I am renting at the moment so I have a roof over my head.
It has now broke my back.
I have other huge debts and my only option is BR.
My Question is when do I hand the keys back to Northern Rock, before I make myself BR or after.
I have no interest in keeping flat.
Thanks DAVE |
| 15 L A T E S T R E P L I E S (Newest First) |
| JulianDonnelly |
Posted - 08 July 2008 : 15:35:52
Hi Jo,
To be safe, I would suggest handing the keys back, getting into a rental and then going BR. By doing things in this order, you have a roof over your head and ensure any shortfall in the property gets written off in your BR.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Needafriend |
Posted - 07 July 2008 : 13:59:09
Hi Julian
Thanks for that and also your other kind words from my other questions.
I need to get a release from all of this and get on with my life. I have an appt with the council next week to see where we stand with them and on her advice we had to wait to see her before we went for the BK hearing. I am trying to find somewhere to live as i dont want to be homeless with my children esp as one is disabled and needs stability in his life. Will that go for us seeing as he needs that familiar surroundings as any thing other can cause distress, the other 2 are at primary school and looking forward to moving one day, we just said that we may be moving and named a few places that we may go too that way no one gets upset and its not there problem its ours and i dont want them dragged into it.
I so much want to put a sticky plaster on life and make it better but cant, i am just concerned about where we will go.
I dont care about the house or the car im glad that the finance co have agreed to take it, i know there will still be a debt but at least they can have there goods back.
Please put my mind at rest, should i just stay here and see what happens, my dad said he would help with any deposit and i dont want to do anything without speaking the the council adviser first, as she toldme they need to know if i have intentionally made myself homeless with the debts and i know that we have not and that now we have no choice.
Best regards |
| JulianDonnelly |
Posted - 07 July 2008 : 12:42:54
The key here is to get into a rental prior to BR as it will be very challenging to pass the credit check whilst BR (I've known agents insist on 6 months up front for an undischarged BR).
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Needafriend |
Posted - 07 July 2008 : 10:38:00
Hi me again how on earth do you give the keys back to the mortgage co before bk as i would love to do that but how do we stand in bk then, how do we get on with getting accomodation then.
I have 3 children and need to consider all things firstly. The car is going back and i would love to say to the C&G Take the house back but what do we do and what will the OR say or even the council and housing associations if we just go
There you go have it we dont want it.
Surely then we have intentionally made ourselves homeless
Should i just wait and let the OR do all that and let the BK cover the rest of the debt on the house
Cheers |
| Needafriend |
Posted - 06 July 2008 : 18:37:24
Thanks for that no at the moment we are ok, the house is estimated at 165000 the mortgage 153000 so when it goes to BK we should still be in the secured part with no shortfall, that is until they sell and depends on what they get for it, but from what you said before any shortfall after that once the BK is in place we are not liable for its covered under the BK notice.
Thats how i understand it from you.
Cheers Melanie
|
| melanie_giles |
Posted - 06 July 2008 : 18:33:33
You will have a shortfall if the value of your mortgage is greater than the value of your property.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Needafriend |
Posted - 06 July 2008 : 18:26:31
Hi when you mean shortfall do you mean arrears.
As i dont really understand what you mean by shortfall as at present we are a payment behind.
Sorry for the dumb question. Please advise
|
| melanie_giles |
Posted - 06 July 2008 : 17:59:44
If there is a shortfall on your mortgage, then you need to include the full amount on the secured creditor section and bring forward the shortfall to the unsecured section.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| Needafriend |
Posted - 06 July 2008 : 16:47:36
Hi in the SOA do i list my mortgage in both unsecured and secured sections |
| JulianDonnelly |
Posted - 04 July 2008 : 17:21:35
Great advice guys!
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| Ian Richards |
Posted - 03 July 2008 : 23:11:05
In a nutshell david, yes you can, but as others have said it is safer to do it prior yo going BR. It will be ok though, just a little more explaining to the OR. |
| melanie_giles |
Posted - 03 July 2008 : 23:10:19
The situation will not affect your tenant, assuming that he is in occupation under a short term assured tenancy, however any rent that is received after the date of surrender will have to be handed to the mortgage company.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
| david_j |
Posted - 03 July 2008 : 22:22:58
I told my building society I wanted to hand the keys back and they said they won’t accept the keys, there is no such a thing and that I have to fill out a voluntary surrender form and return it to them and ensure the property is empty.
My issue is that the property has a tenant that has to vacate property and will I cause myself any future problems by signing a voluntary surrender form or is it standard procedure when handing back keys.
Also can I go BR the day after handing the keys back. Had enough of having to deal with the phone calls...Thanks Dave |
| JulianDonnelly |
Posted - 02 July 2008 : 11:38:20
Hi Helen,
Ensure you list your mortgage/secured loans in the unsecured section of your SOA with "?" in the amount and "shortfall" in the purpose column. By doing this, you will ensure that any shortfall from reposession/sale will be included and written off in your BR. However, it is always safest to try and deal with the property prior to BR.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
| melanie_giles |
Posted - 01 July 2008 : 00:07:22
If there is equity in the property you should most certainly not hand the keys back to Northern Rock until the Official Reciever is in office and can direct what he/she decides will happen.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
