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Maggie.wk
Starting Member
6 Posts |
 Posted - 24 March 2010 : 10:36:25
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| Went BR on 19th March, waiting for Telephone interview on 15th April. Our house is in Negative Equity and we also have a secured loan. We were advised by a 3rd party that we should be able to keep our house. Now someone else has told us that if the OR deem that we are paying to much in mortgage payments/secured loan they can make us give up the property? The Mortgage and secured loan takes up all my wage and we live on my husbands wage? Totally confused and worried now. |
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Jane.l
Average Member
511 Posts |
Posted - 24 March 2010 : 10:51:23
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How much do you pay monthly for the mortgage and secured loan? What percentage of your household income is this? How much negative equity do you have?
Do you have an idea of how much a similar house would be to rent in your area?
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Maggie.wk
Starting Member
6 Posts |
Posted - 24 March 2010 : 11:15:34
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Monthly total for Mortgage and Loan is £1740. This is just over 50% of our total income. The amount of Negative Equity would be £50,000 which takes into account the secured loan. I should imagine a similar house in our area would be around the £650 mark for monthly rental.
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debtinfo
forum expert
2826 Posts |
Posted - 24 March 2010 : 11:26:57
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| Im not having a go, but wouldnt it be better to go to a place that costs much less anyway |
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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 24 March 2010 : 11:36:00
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Hi
Sorry to lean of your problems.
As debtinfo has suggested, you are really better looking at the bigger picture for the way forward.
I see that you have filed your petition and are now BR.
The OR will be investigating your situation over the coming weeks and months.
Why not look to one of the experts that post here to assist (even though you are BR). I am thinking specifically of Reviva UK as a well established and respected firm that will look at your situation and help you through the next stage of your life. The details are on the left hand side of the page.
Good luck, Richard
quote:
Originally posted by Maggie.wk
Monthly total for Mortgage and Loan is £1740. This is just over 50% of our total income. The amount of Negative Equity would be £50,000 which takes into account the secured loan. I should imagine a similar house in our area would be around the £650 mark for monthly rental.
"There are no problems - only solutions" |
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Jane.l
Average Member
511 Posts |
Posted - 24 March 2010 : 11:55:14
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yes, that does seem to be quite high payments, I have to ask, is the house really worth it?
We had about that level of negative equity and a secured loan and the payments were £1300 per month, which at the time was just less than 50% of our total monthly income but we decided the house was not worth it. It needed work too. We rented privately for about £570 per month and then got a council house for £320 per month so a BIG saving there and a far better, bigger house in a nicer area. It was tough at the time but was the best thing for us to leave the mortgaged house. I think you need to think long and hard about the future and at what cost to stay in that house. Just my opinion but be prepared that the OR may bring this up |
Edited by - Jane.l on 24 March 2010 11:55:53 |
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Maggie.wk
Starting Member
6 Posts |
Posted - 24 March 2010 : 12:51:12
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Thanks for your advice. How can we sell the house when we are BR? We would have no money for moving,deposit etc and what about the shortfall that there would be?
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debtinfo
forum expert
2826 Posts |
Posted - 24 March 2010 : 13:56:12
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| Aby shortfall would fall into the bankruptcy no matter when it is repossessed and sold as long as you dont sign an agreement to become liable for the debt again. If you stop paying the mortgage they will repossess the property eventually, this normally takes at least 3-6 months and so the money saved from nt paying the mortage could be used to put a deposit on a rental property, if you tell the OR you are doing this then sometimes they might give you a few months befre taking anything of you to get yourself sorted |
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Maggie.wk
Starting Member
6 Posts |
Posted - 24 March 2010 : 14:06:03
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Thanks very much. That has cleared up a couple of things for me. Does that include the secured loan or would we need to still keep paying that? Tough decision to make. Wish I had found this forum before we went BR.
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Jane.l
Average Member
511 Posts |
Posted - 24 March 2010 : 15:00:14
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yes, if you are going to give the house up, stop paying the secured loan as well as the mortgage, be prepared to be hassled though from them as they will say anything to get you to pay.
Hindsight is a wonderful thing, did you get professional advice before going bankrupt? was the house issue not brought up at that time? we took our time deciding on giving the house up and then going bankrupt, we researched it on here and other forums and went to CAB and did what was best for us, looked into an IVA but decided bankruptcy was the better option |
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waiting for Telephone interview Totally confused and worried
