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adogillo
Starting Member
United Kingdom
25 Posts |
 Posted - 31 March 2011 : 17:40:28
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My wife and I were declared BR in Nov 10 and we voluntary surrender our house to the mortgage company, as we couldn't afford the mortgage and secured payments. Our mortgage company sent us forms for us to sign regarding any shortfall would be our responsibility,this was the second time that they sent out forms 1st time we filled them in but didn't sign them but before doing anything this time we rang the OR for advice they said just to sign it as any shortfall would go onto the BR. Is this the case as I've been reading other people's cases on here and they didn't sign anything. The mortgage company have put the house up for sale at a price below what we owed them now it has been reduced further.
Sorry for the long post, but am worrying myself to ill health. |
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glafy
forum expert
436 Posts |
Posted - 01 April 2011 : 07:26:02
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Not sure about this, I'll bump it up for the experts to comment.
"Good things come to those who wait".....I'm a patient person but this is taking the Mickey!! |
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Richard P
Senior Member
United Kingdom
1701 Posts |
Posted - 01 April 2011 : 16:15:39
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hi adogillo
technically any debt signed for after BR is a new debt.
with things like car loans and mortgages some of the lenders are prepared to cross out the print about we will chase you for shortfall and amend to included debt in bankruptcy.
if you are speaking to the OR and mortgage provider get names and hopefully letter to confirm it will be included. 9 /10 times it will be but you need to make certain as you do not want a fresh debt.
Good Luck Richard,
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Mike62
Starting Member
United Kingdom
31 Posts |
Posted - 01 April 2011 : 20:56:18
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Hi all,
I thought that ALL debt incurred before BR went into the "Pot", so how can a mortgage provider chase for the shortfall?, so long as a deed of acknowledgement isn't signed I thought that was the end of it?.
Mike.
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 01 April 2011 : 21:59:41
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As long as you refuse to sign the bit about debt not being involved in BR then you should be ok.
Otherwise, as far as I am aware, it will be dealt with outside of the BR and you will be liable for it.
These forms need to be read carefully before anything is signed.
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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Mike62
Starting Member
United Kingdom
31 Posts |
Posted - 01 April 2011 : 22:13:34
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Hi Jan,
Just following on a bit, why, if the debt is "covered" would you even send the forms back signed or not?. We have a couple of properties that don't have an LPA receiver over them (some do and will revert back to us) and we have to let these go as in lots of neg equity, and we have no intention of sending anything back other than the keys and a covering letter.
Mike.
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Edited by - Mike62 on 01 April 2011 22:15:57 |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 01 April 2011 : 22:20:32
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Hi Mike,
Some people do though as they haven't found the forum!
Double, double toil and trouble;
Fire burn, and cauldron bubble.
Jan
xx |
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adogillo
Starting Member
United Kingdom
25 Posts |
Posted - 02 April 2011 : 14:55:05
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| we initially sent the keys with a covering letter, which the mortgage company refused to accept the surrender of the house,they resent out the letter/forms, which was then when i contacted the OR who said it was fine to sign the forms as any shortfall with the mortgage would be covered in the BR as they will still be interested in it for 3 yrs. |
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Bigal4787
forum expert
United Kingdom
641 Posts |
Posted - 03 April 2011 : 00:09:17
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Hi,
when the RTC(report to creditors) goes out to creditors, it will list amongst the liabilities any shortfall from properties that are in negative equity, as the shortfall gets carried down from assets to liabilities.
So, if the property is in neg equity prior to bankruptcy, and the property subsequently sold the shortfall will be claimed in bankruptcy. However, in some cases the borrower may be asked to sign some forms amongst which will be a Deed of Assignment(D of A), however the simple fact is that you don't have to sign it(that's why they send a load of forms to sign, saying just sign and return!!...read them carefully first.
The following article may help:
http://www.debtwizard.com/blog/general/617-repossessed-borrowers-sign-a-deed-of-acknowledgement-at-your-peril
Hope this helps
Big Al
Insolvency examiner with the Insolvency service from April 2008 - July 2010.
If you need help completing SOA's(statement of affairs) or PIQ's(preliminary information questionnaire) if you've been declared bankrupt, or anything else and you're within 30 miles or so of Warrington, then please contact me via my contact details in the expert page for futher details"
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kentmikey
New Member
61 Posts |
Posted - 03 April 2011 : 19:19:55
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So wouldnt it be safer for adogillo to not return any of these forms he/she has been sent?
Mikey |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 03 April 2011 : 23:54:41
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If you get it wrong you could easily face bankruptcy AGAIN in a couple of years to clear the deed of assignment .
You also need to be VERY CAREFUL that even after posting keys back without signing a deed of assignment, some mortgage lenders ore extremely slow to actually repossess your property. We are seeing many cases with Northern Rock where AFTER bankruptcy folks are being pursued by a new council tax bill for the house they thought they had surrendered.
A previous poster suggested that using a company to help through the process is not necessary.
Depending upon your situation it could be the best thing. Either way everyone has a duty to themselves to be 100% sure that they know exactly what they are doing BEFORE going bankrupt because these are no safety nets .
Paul
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
08454 751 851
Real People ..... Real Debt Solutions |
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Panic has set in
