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| T O P I C R E V I E W |
| Jo.hdw |
Posted - 04 January 2011 : 11:18:56
Please does anyone know what is likely to happen to a family home which if sold would cover mortgage but not the charge and costs?
Would it be possible to buy the BI and keep it? would this decision be made anytime up to 3 years or could it be done at the start? maybe wishful thinking?! Thanks |
| 5 L A T E S T R E P L I E S (Newest First) |
| carl |
Posted - 04 January 2011 : 14:15:00
Thaks again BigAl we posted at the same time!!
Carl |
| carl |
Posted - 04 January 2011 : 14:12:00
Hello
Am I right in understand this new rule correctly?
My property is mortgaged and as secured loan against. It is in approx 25k of negative equity.
I understand that they have introduced a new rule in which they will wait until the 2yrs and 3months point to review the property situation to see if there is any equity, but can this also work the opposite way in that the OR may offer the chance early to buy back the BI (due to amount of negative equity) but me as the BR person can refuse at that point and can ask to wait until the 2yrs 3months point to see how the property market is and how the job market may be. I know there is a element of risk involved (incase property prices shoot up) but if the property is massivley in negative equity this would allow the BR person an element of protection against whatever happens in the future eg property prices not increasing, redundancy.
Or is it a case of when they offer you the chance to buy back the BI if you dont take it at that point they will start the process of selling the property etc.
It would be just my luck to be offered the chance to buy back the BR only to lose my job shortly after and then be liable for the shortfall in any mortgage arrears that may occur in the future and I would be back with a debt over me once again.
Thank you
Carl |
| Bigal4787 |
Posted - 04 January 2011 : 14:05:24
Hi,
my understanding regarding the new BI guidelines are that no MP1's will be sent out inviting a buying out of the BI in the property if in negative equity, instead once the OR has completed their enquiries, then it will be transferred to the RTLU, who will then review it at the 2 years and 3month point, to decide what to do with it, if the property is still in substantial neg equity at that point, the liklihood is that the legal title will revest to the owner. Currently, at that point, if the equity is £1,000 or less, the property will also revest to the bankrupt, as if the OR applied through the court for a charging order, the OR would in all liklihood lose(due to the enterprise act 2002), in which case the property would revest again to the bankrupt.
However,in cases where the equity is over £1,000 and the owner or a third party is unable to make a reasonble offer for the BI, the OR could either force a sale,or apply for a charging order.
Additionally, my understanding of the new rules regarding BI, is that if the property is in negative equity when first bankrupt, that although the offer to buy out the BI for £1 plus costs of £211(in jointly owned properties) no longer counts, the bankrupt could still make a reasonable offer for the BI. Say for example the neg equity was £5-10,000, the OR could view say an offer of £1,000 for the BI as being reasonable, and still deal with the BI that way, however it's not clear whether the legal costs would still be £211.
Obviously before doing so you would have to consider whether it was a risk worth taking, or hope that property values don't increase substantially within 3 years.
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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| Viki.W |
Posted - 04 January 2011 : 13:06:40
I believe that if your home has not only a mortgage, but a charge or secured loan which takes it into significant negative equity, then the OR may deal with the BI sooner than the 2 years and 3 months.
This may also be the case if there are no charges or secured loans, but they really don't think there will be any equity, ie, you're in a ton of negative equity now.
Also if there are disability/carer/old age issues.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
| Skippy |
Posted - 04 January 2011 : 12:02:59
The OR has up to 3 years to deal with the beneficial interest, and now the earliest that this will be dealt with is 2 years and 3 months from the date of BR.
I presume the procedure for buying BI will remain the same, but hopefully one of the experts will be able to confirm.
View my blog at http://skippy13.blogs.iva.co.uk/
Only when the last tree has died, the last river has been poisoned and the last fish has been caught will we realise that we cannot eat money.
Last IPA payment made on 28th June 2010 - it's over at last! |
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