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| Becks79 |
Posted - 14 September 2010 : 21:31:40
Hi, bit of a complicated one. I've had a good look and found only one similar post but my situation differs in areas I believe may be very significant.
Right, I was declared bankrupt last month. I'm currently working with my OR's office to decide whether I can afford an IPA as my income is due to drop next month. I'm a single mum with 2 small children (2yrs and 6mths) and am currently on maternity leave. My wage will drop to just SMP from next month (I'll be losing almost 50% of my income from employment) and my tax credits will be going down as my childcare costs are also going down. I fear this means I will no longer be able to afford my mortgage payments. I am sole (mortgaged) owner of a leasehold property so the title as well as beneficial interest (of which there is none as I'm in negative equity) has been transferred to the OR. I would like to buy back my 'interest' and the title but there's no way I can afford all the legal fees involved and am not entitled to any legal aid (not sure it would even apply in this instance) due to my overall income at present. So, my questions are:
1) If I don't buy back the title etc and then find I can no longer afford the mortgage payments what do I do? Who do I contact first?
2) I'm more than happy to hand over the keys and possession of the property if any shortfall would definitely be included in my bankruptcy but how would I go about doing this?
3) How long would it take the lender to repossess the property if I just stop paying my mortgage (because I can no longer afford it) and could this be sped up if I willingly relinquished the property?
4) Would any shortfall still be included in the bankruptcy if the property is repossessed and sold AFTER discharge? Would repossession proceedings have to start BEFORE discharge or is it the actual repossession date that counts?
5) If my home is repossessed, how long do I have to find somewhere else to live or should I find somewhere else (council?) first?
There are probably loads of other questions that I just haven't thought of yet so any answers to the above and/or general advice would be much appreciated! |
| 1 L A T E S T R E P L I E S (Newest First) |
| Blackie |
Posted - 16 September 2010 : 08:42:03
Morning Becks
Unfortunately it does sound as if you are in a dilemma!
First, as you so rightly say, there is no way that you will be able to afford to pay an IPA and therefore that will be stopped.
With regard to the property, if you can not afforrd the OR's legal fees for ransferring your house back into your name, he will keep his interest in the building on the land register for up to three years. The only problem with that is if the house increased in value and you suddenly had positive equity, the OR may require some of that. At the present moment though, due to the negative equity, the OR is not too interested and you would probably have to deal with the mortgage coompany. If you can not afford to make the monthly payments, you run the risk of being repossessed. However, as you have 2 small children, it could take about a year to evict you allowing you time to find rentedaccommodation. I woud suggesr that you speak directly to the mortgage company as they do not want to repossess your property and you may find that they will bend over backwards to accommodate you.
If you hae already decided that there is no way that you can afford the mortgage and wish to move, clear the house, move into alternative accommodation and hand the eys back to the mortgage company. Any shortfall in the house WILl be written off in your bankruptcy irrespective of when the property sells.
I hope that the above helps and please, of course feel free to make further postings on the site.
John Blackadder |
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