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| rdwyer |
Posted - 07 September 2010 : 23:01:58
My husband and I are going BR next week to the tune of approx 500K. We want to save our house. It's currently worth no more than 220K, we have a first mortgage on it with IF for 265K which we have been paying and have built up a reserve of £3500. The mortgage is interest only. We have a 2nd charge with Picture for 70K which we have not paid for 12 months. They have been unusually quiet and not chased us because of the negative equity and it would not be in their interest to contact the 1st mortgage lender and ask for a repossession. What steps should I take to keep the property? |
| 2 L A T E S T R E P L I E S (Newest First) |
| Melanie.n |
Posted - 08 September 2010 : 10:25:28
You would be given the opportunity to keep your house following the bankruptcy, byt way of purchasing the 'beneficial interest' But i would seriously advise you against this course of action. I only ever recommend the purchase of the beneficial interest from the OR when it is clear that the individual can afford to move forward with the ability to meet the mortgage and any secured borrowings on the property each month.
Your bankruptcy will only 'deal with' your unsecured debt - you will still beliable for your 'secured debt' this is your mortgage and Picture loan
You state that you have a Picture loan which you have not paid for 12 months which indicates that you cannot 'afford' to pay your secured borrowings on our property. If you were to purchase the beneficial interest and thus remove the property from the bankruptcy, you would still be liable for the secured borrowings/debt on the property, the fact that you have arrears with your secured lender may result in the secured lender taking action to recover theproperty ie repossession
It would be fat better to accept the seriousness of your situation and accept the fact that you cannot afford to remain in the property, file for bankruptcy and inform the OR that you wish to hand the keys back on the property - that way, any shortfall fromt he sale of the property (which would become unsecured debt) would come into the bankruptcy. If you were to go bankrupt, purchase the beneficial ionterest from the OR, you would still run the risk of losing the home due to your arrears and if that happened after you had purchased the beneficial interest you would be personally liable for the resultant shortfall - which may mean you having to go bankrupt for the second time.
My advice would be accept the situation, cease payments on the mortgage (and secured loan) find yourself suitable,alternative rented accommodation and secure the bond and rent from the money you would otherwise have paid to the mortgage company (you will find it easier to rent a property before you have the bankruptcy entered onto your credit file)and then file for bankruptcy, with the bankruptcy being able to give you a complete fresh start with no debt
Sorry if this is not what you wanted to hear, but it is importnant you realise and accept the seriousness of your situation, Melanie
Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996
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| debtinfo |
Posted - 08 September 2010 : 00:41:16
You could keep the house in the bankruptcy, The OR will contact you about doing so, The real question is is it wise to do so having got rid of all your other debt you are choosing to keep a £115,000 liability with high repayments |
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