| T O P I C R E V I E W |
| wellerchic |
Posted - 21 April 2009 : 21:32:11
Hi
I am going through some difficult times at home and may end up the sole payer of my mortgage which is very high £955.
If I was to give up the house would the negative equity (£15,ooo) be covered by my BR.I had my OR call 5 weeks ago.
Would this be the best way out of the mortgage or is getting re possessed at better option. I do not want to do either.
I could afford the mortgage if it was interest only £695 but my Husband will not sign the paper to allow this.
If I did not have the mortgage I would try and rent a house for myself and my two children 14 and 17.
Please help
G x
There is light at the end of the tunnel, I can actually see it !!!! |
| 6 L A T E S T R E P L I E S (Newest First) |
| Daniel Griffiths |
Posted - 22 April 2009 : 09:55:36
Hello Wellerchic I guess its tough times now for you and your children, but now at least you your financial problems have eased somewhat and now its time to sort out the house. After your bankruptcy the OR would have put a Form J restriction on the property as now its beneficial interest lies the OR and your husband. Whether that is a good thing depends how you view it, the property in negative equity by £15000 so it is a liability at present not an assett to its new part owner the OR. You are just living there maintaining a secrued loan upon it, which is effectivley paying rent with the option to buy back at an inflated price within three years, ask yourself what kind of property can I rent for £900 plus per month If you just stopped paying the mortgage I believe you would possibly have several months of free accomodation and that would allow you to save for some deposit for rented accomodation, the house would be repossessed and your husband may well then regret not playing ball in reducing the payments as he and he alone will be hit by the mortgagee for many thousands of pounds in the shortfall. You dont have to make any decison imediately the OR cannot excersise any option on the property for 12 months anyway as you have children living with you, however this is of course if you maintain mortgage payments. There are so many factors to give consideration to in this matter that this forum is not really the way to discuss it I suggest you get some free advice from the CAB, but I can tell you with some certainty that the house at present is not your responsibility financialy. |
| chester2005 |
Posted - 22 April 2009 : 09:31:33
Firstly don't worry about statements etc. The OR has the ability to get whatever he needs that you don't have directly from the Banks etc
If at the time of interview you don't have a tenancy agreement you havn't got one to show him if he wanted it anyway.
I think it would be more likely that he would just wantthe name and address of the landlord but if you are still in your house then that doesn't matter.
The length of time it takes for property to be reposessed you would likely be better off not paying the mortgage again and the money used for deposit and rent of new property straight away so that it can be counted as expenditure on your I+E
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
| ripski |
Posted - 22 April 2009 : 06:04:15
I am worried that my paperwork will not satisfy the OR. I thought about 3 -6 mths payslips and bank statements would be wanted . A friend has recently got advice re BR from CAB and was told definately - 3 mths bank statements. I only have 5-6 bank statements as changed 6 mths ago when into a DMP and Nat West was closed down. I had all the NW until last mth and then shredded them all in a clear out! I am a hoarder and this is the first time that I decided to be brutal and declutter ready for a move, typical now I need them.
Credit statements were all sent to DMP company.Should I ask for them back?
Does OR always ask to see tenancy agreements and which do they ask for eg Housing association or private landlords. Is there any criteria.
At the time of the OR interview I will be still in house and paying hefty mortgage, although missed last mth. I had intended staying for 6 mths or so but now think that I may be better going Voluntary repo I intended to discuss/ask advice of OR re this but I will not then have a tenancy agreement for about a month or two. My brother has agreed to get a tenancy for me so that I wont have any probs with checks etc. How would this work
ripski1 |
| chester2005 |
Posted - 21 April 2009 : 22:24:38
as long as the expected shortfall was listed on the SOA or you told the OR about it in your interview and you give up the home before you are discharged the neg equity should be covered.
I'm reasonably sure of this but stand to be corrected by an expert
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
| wellerchic |
Posted - 21 April 2009 : 22:09:18
Hi
I have already done all my paperwork and had my OR interview, can this be done after the OR call during the year of BR.
G X
There is light at the end of the tunnel, I can actually see it !!!! |
| chester2005 |
Posted - 21 April 2009 : 22:00:36
if you list the expected shortfall on your SOA then the £15000 would be covered when you give up the house
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
