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T O P I C R E V I E W
John.sp
Posted - 30 April 2013 : 23:22:48 I was made bankrupt on 10th June 2013 and am therefore almost on my third anniversary. I have a house which I have maintained the mortgage payments on during this period and has now been valued by the Trustee (via a local agent), and they are estimating the Beneficial Interest at £23k.
The letter I have received states that due to the timescales a possession proceedings are likely to be issued. This all seems to be a bit last minute to me? A previous letter mentioned the interest re-vesting to me in August this year so I'm wondering if they have made a mistake and "forgotten" about it till now.
I have asked about an acceptable offer and they have said £20k,(allowing £3k for court/sale costs) which is a sum I don't have. I've had my own valuations carried out and the estimate seems to be accurate.
Therefore I have a number of questions:
1. Do they need to get this into court by 10th June and have a decision or just start proceedings before then? 2. How quickly are they likely to be able to get this into court? 3. Although I don't have £20k, I am going to make an offer to make payments on a monthly basis for a period for up to 2 years. (I'm thinking c£300 month for 2 years maximum)Does anybody have any experience of this type of arrangement or are you able to advise on the chances of it being accepted or if this is too big or small an offer? 4. Rather than possession/forced sale are they likely to go for a charging order? 5. If a possession order is granted how long will I have to find another place to live?
A lot of questions I know, but trying to assess the options. Ironically just getting my head above water with a new job this month so the thought of making the kind of payments I'm talking about makes me feel like walking away from the house rather than live on the breadline for another 2 years, but I would hate to do that then realise there was another option.
Thanks
2 L A T E S T R E P L I E S (Newest First)
John.sp
Posted - 01 May 2013 : 17:26:40 Hi Richard
Thanks very much for the reply - The estimate on equity is actually low I think as I have had 3 valuations done myself and that would put it at £15-20K higher. This surprised me and probably makes me about the only person in the country who is less than pleased with the news! In light of what you are saying about the 10-15% below a valuation I wonder if they have factored this in already. I think I'll open negotiations and see where we end up!
Richard P
Posted - 01 May 2013 : 16:20:13 HI John
The OR are getting very hot on taking the equity from property it is about 3 years since the rules changed so every situation is open to negotiation
ref your questions
1. just start proceedings before then? although they must show why it has taken so long if enqs are protracted 2. depends on local court the process could still take another 6 months ? they have yet to have a big bad publicity with press involved .. evicting young family for equity of about 5 - 10K putting pressure on local housing associations and councils 3. all situations are open to negotiation.. start low 4. lots of publicity about charging orders but this needs to work for you as well as them so review carefully 5. depends on appeals. they have 3 court hearings to go through as well as time for you to reply to information requests. I would say 6 months.
As stated the rules, guidelines and legislation changed about three years ago, every thing is open to negotiation.
what does the mortgage provider say about the potential enforced sale ? if the forced sale means that the mortgage provider will loose out they may help you fight the OR.
The real question is what is the house actually worth ?.
I am currently dealing with the OR a situation with similar circumstances they have obtained the valuation from a desk top estimate.. This is not fair as if they are going to court for an enforced sale the valuation would be based on a 90 day sale price . which is normally 10 - 15% below estate agents sale valuation.
