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norma.fr
Starting Member
1 Posts |
 Posted - 17 January 2010 : 16:32:58
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| if i declare myself bankrupt and my house is in joint names with my husband (mortgage) with not enough money left in it will it have to be sold |
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debtinfo
forum expert
2826 Posts |
Posted - 17 January 2010 : 16:58:22
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Hello and welcome. I presume you mean negative equity. When you go bankrupt you Beneficial Interest (IE your share of any future equity) transfers to the OR. The OR will give you first shot at buying that back. If it is in negative equity you can buy it back for £1 plus £211 fees. That way you get to keep the property.
If there was equity in thr property you would have to buy it back for the value of the equity |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 17 January 2010 : 18:35:07
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Hi Norma,
Cannot add much to what debtinfo has said - sound advice.
Might be worth getting the property valued by three estate agents in the locality.
Do not say you are thinking of bankruptcy as they will not come to value the property! Say that you are thinking of moving to another part of the UK for work - the valuations will be free.
Then take the mean and see how it compares with the sum owed to your lender(s). If it is negative equity (less than you owe) then the BI can be purchased as said for £1.00 plus the cost of the ORs solicitor (TLT - based in Bristol).
If there is equity then your husband (who is not going BR)can buy the real equity - say there is £5,000 value over the sum owed, then he pays 50% - assuming there is a 50 50 split in the ownership.
The OR occasionally gets a valuation too - and then sometimes you negotiate with the ORs representative. They normally look on Rightmove or one of the portals that show house sales. Generally, from my experience, it is seldom that they actually commission a valuation.
I hope this is clear, Come back if it is not and I will try to clarify. Regards, Richard
"Life is generally something that happens elsewhere" (Alan Bennett - author and hero of mine!!) |
Edited by - Housing on 17 January 2010 18:37:33 |
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Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 18 January 2010 : 10:57:16
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It is also worth bearing in mind, that if you do get a valuation which shows equity in the property attributable to you, it is possible to negotiate that sum down.
The Official Receiver will generally look at any genuine offer that is put to him/her as the alternative actions such as taking steps to secure vacant possession, market and sell the property would almost certainly diminish the equity return for the OR
Steve Thatcher
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if i declare myself bankrupt
