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| joseph |
Posted - 23 February 2011 : 22:51:04
Hi I'm new and bankrupt early December 2010. Should I take the 'interest' in my house where I live alone and would wish to keep. Official rec has said I can if keep up payments that I can to mortgage and second loan company or should I wait to some other time in the future to do it that they said I could without paying £500 now? I would be grateful for any thoughts. Thank you |
| 3 L A T E S T R E P L I E S (Newest First) |
| Bigal4787 |
Posted - 24 February 2011 : 23:46:58
Hi joseph,
at £75k neg equity, it may be reasonable to speculate that there will be no return to equity in 3 years, but there again you never know with regional variations.
If you wanted to buy back the BI( you can't do it for £1 plus fees anymore), you would have to make the OR a reasonable offer, which could be anything up to £1,000(maybe more if not in so much neg equity) plus the OR's costs. So at £75,000 neg equity would it be worth the expense, especially as you will automatically get it back after 3 years.
The other consideration,is that if you did buy the BI back, then as expected interest rates rise and so the mortgage, and say fell into arrears, repossession etc, then you would be liable for the shortfall. I can't give a definite answer, just things to consider.
Hope this helps.
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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| joseph |
Posted - 24 February 2011 : 18:39:41
Thanks Richard P for replying.
Yes, the property is in about 75k negative equity and I can easily afford the repayments, I also wish to stay here.I wont be able to get a mortgage for many years at any rate especially in this climate.
What I was really qeurying was weather I/my mum/or partner need to take over the interest now or if I dont will I automatically be able to do so in the future (3 years?).How about if there were a price surge over 3 years (also taking into account mortgage payments x 36)it could come out of negative equity, what would happen then if I take on the property now or wait for the future? I don't want to stay and pay the mortgage but potentially then loose it. Would they get any equity in the future if I take it on now?
Many thanks for your thoughts and advice.
Joseph
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| Richard P |
Posted - 23 February 2011 : 23:01:19
Hi Joseph congratulations on your bankruptcy welcoem to the forum
i take it that the property is in negative equity ?
I also take it that should you decide to keep paying mortgage and second charge you can afford to do so ?
The big question is what do you believe will happen to the price of houses in the next few years ? (short term and long term). your beliefs will dictate your choice. Pesonally I believe house price will wobble for a few more years then have another steep climb, then crash property prices are on a progressive cycle
Richard |
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