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| T O P I C R E V I E W |
| s10 |
Posted - 27 February 2009 : 12:26:32
Hi all, S10 here !
I have been BR since last June, and I think I will be getting a BRU/O as Ive been back to the OR's office twice since BR, and she still asking questions via email.
During discussions with her, she has advised me that if I VOLUNTARY hand the keys back while I am in BR, any short fall of monies to (mortgage company) would be added to the Bankruptcy, hence I am not liable for any shortfall?!?
As my house is in approx £10000 negative equity and has a £4000 early redemption fee till Dec 2010 this seems a sensible option, as after BR I would be trapped in the house, due to redemption fees possible BRO etc.
Can anyone please give me their views on what the advantages and non- advantages of this situation would be.
Kind Regards
S10
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| 10 L A T E S T R E P L I E S (Newest First) |
| CMJ |
Posted - 28 February 2009 : 12:46:26
Thankyou for that Melanie,
I guess as many others we need to decide whether to stay in our current propert, and hope it eventually regains equity lost and begins to make money once again or hand back the keys, and start a fresh.
More thinking!!!!
Thankyou again
Michelle |
| s10 |
Posted - 28 February 2009 : 10:30:48
HI
Am I correct in thinking with this senario, if a third party buys my beneficial Interest, thus the OR has no Interest in the property, and in three, four, five years the house goes from Negative equity to having a equity in it, can any of the creditors that were listed in the original BR make a claim on the newfound profit in the house.
Hopes this makes sense
S10 |
| Melanie.n |
Posted - 27 February 2009 : 20:20:02
Michelle
After you have been discharged from the bankruptcy, that is basically the end of it. You will be able to downsize and providing you have keep your mortgage payments up to date I forsee little difficulty in you being able to 'port' your mortgage, and indeed know of many people who have done this. The difficulty comes from applying for a new mortgage with a new lender, and the fact that you will be asked 'have you ever been made bankrupt' will cause difficulty as you will be deemed a bad risk and as such pay a higher interest rate. Your current mortgage company will only be concerned with your payment history with them.
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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| CMJ |
Posted - 27 February 2009 : 18:45:38
Hi
With regards to this question we too are in a similar position, we were made BR last Nov and too are in neg equity, and have wondered about voluntary repossesion??
My question is does anyone know , if we stayed in our house and kept up with mortgage payments, if in say 6-10 years we decided to move possibly down size, would our lender [the Halifax ] allow us to port the mortgage with us to a new property, or would we be in a position where we have to find a new mortgage, having being declared BR years earlier?
Thanks would appreciate any views on this,
Michelle |
| Melanie.n |
Posted - 27 February 2009 : 14:32:14
thats what we are here for!
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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| s10 |
Posted - 27 February 2009 : 13:48:48
Melanie,
Many Thanks, it helps to get another perspective!
Thanks
S10 |
| Melanie.n |
Posted - 27 February 2009 : 13:45:16
It really is only a decision you can make - don't rush it ! If you do hand your keys back you will find it very difficult to get back on the housing ladder mortgage wise following a bankruptcy, you can do it, but you pay through the nose for the privilige! with high borrowing rates than 'non' bankrupts as this is always a question that will be asked..have you ever been made bankrupt....
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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| s10 |
Posted - 27 February 2009 : 13:19:06
Thanks Guys,
Its a hard one as I can afford the repayments, but I did do further borrowing on the mortgage over the years, approx 40K for various! So if I kept the house it will take a longer time to pay the mortgage off. But if I hand it back I do get a fresh start SO to speak.
A lot of thinking to do me thinks.
Thanks for the Input
S10 |
| wellerchic |
Posted - 27 February 2009 : 13:05:49
Hi
I think I will be in a similar situation because our house is £15,000 in negative equity however because my Mum lives oppositeI would find it difficult to move away. My Mum is elderley and I like the option of just being able to walk over the road to make her lunch or clean and care for her. We can still maintain our Mortgage payments so I am hoping we can keep our house.
Good Luck
G x
There is light at the end of the tunnel, I can actually see it !!!! |
| Melanie.n |
Posted - 27 February 2009 : 12:59:35
This is something that is down to personal choice - can you afford to maintain the mortgage payments and stay in the house if yes, look at that scenario. If you cannot feasibly afford to maintain the mortgage payments, voluntarily surrender it back and yes any shortfall would be contained within the bankruptcy giveing you a fresh start financially speaking
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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