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pgpg
Starting Member
United Kingdom
4 Posts |
 Posted - 28 September 2010 : 20:05:49
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Hello, I am asking on behalf of a friend with 3 children at her wits end.
She has received a letter from her mortgage company saying she has a repossession hearing to attend in November. She has arrears of £5k on the house and is struggling to repay.
She had to declare bankrupt about 11 months ago, and the house was not ordered for sale but offered back, but not being able to afford legal fees it technically still is in the hands of the OR.
So question is, is the repossession hearing against her valid if the house is with the OR?
Is she better to work through the court process with the mortgage company or bounce it back at the OR?
Obviously with children needs to keep the house if possible.
Any advice gratefully received! |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 28 September 2010 : 23:25:35
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Hi
the House vesting with the Official Receiver and the reposession position are actually separate.
The Official Receiver will enjoy the equity in the house ( if there is no equity then there is no financial gain for the OR), however your friend needs to purchase the "beneficial interest" back from the OR to retain the house.
However the mortgage on the property needs to be paid each month as it is your friends responsibility rather than the OR's. If she can meet the mortgage repayment then she is likely to be able to make a payment offer to the mortgage company - say £50 per month - towards the arrears.
Has she been paying the mortgage during the bankruptcy period?
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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pgpg
Starting Member
United Kingdom
4 Posts |
Posted - 28 September 2010 : 23:28:53
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Thanks for the reply, and I understand what you are saying re. the separation.
I think she has been paying what she can monthly on the mortgage but I don't think it has been the full amount.
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pgpg
Starting Member
United Kingdom
4 Posts |
Posted - 28 September 2010 : 23:31:32
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I should have said - she has received a letter from the mortgage company mentioning the court hearing date but has not had any application served on her for completion of defence etc. Letter says 'posession hearing at which we will be applying for a possession order'.
It is from the mortgage company not solicitors. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 29 September 2010 : 00:25:04
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The OR may be the trustee of the house, however it is the mortgage company's security, and if they want to repossess it they can, all they have to do is inform the OR of what they are doing finally issuing the completion statement only on sale if no surplus, or if a surplus anything left over once the mortgage or other secured lending is paid.
As she is in arrears and in danger of repossession, but wants to stay in the house, it may be worth speaking to your local housing authority about the Mortgage Rescue Scheme, which is a Government run scheme,to help people stay in their home, and as someone with dependant children is one of the qualifying categories. Basically, the local housing authority purchases the property, then you pay the authority rent.
Big Al |
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RHB
Senior Member
1159 Posts |
Posted - 29 September 2010 : 15:20:34
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| If she can't meet the repayments it is likely that the only way to keep the house would be with the above mentioned scheme. |
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pgpg
Starting Member
United Kingdom
4 Posts |
Posted - 29 September 2010 : 21:15:31
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| thanks for the replies....... |
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Hello, I am asking on behalf of a friend
