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carl
Junior Member
115 Posts |
 Posted - 12 October 2011 : 22:56:58
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Hello forum
Ive been discharged from my BR now for about 3months with no IPA/IPO and Im in the process of clearing up my credit report for the future.
I have a query regarding my property which is current approx £20,000.00 in negative equity due to a mortgage and one secured loan against it.
I soley own the property and understand that the BI in the property now lies with the OR.
My question is what would happen with the property should I die before the OR revests the property to me around the 2yrs 3month stage? Does it just go to the banks for repossession?
Am I right in thinking that techniqally the property is no longer mine?
I have a life assurance policy whicch the OR had no interest in and I purchased there interest in it for £50. This policy easily covers the outstanding amount of mortgage and secured loan.
Would the OR want any of this?
Thank you
Carl |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 13 October 2011 : 06:43:07
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I imagine that if the OR had no interest in the policy then in the event of your death it would probably go to pay off your mortgage and secured loan before anything else.
However, I do stand to be corrected though.
Hopefully this will remain a hypothetical question!!!
Follow through
Make your dreams come true
Don't give up the fight
You will be alright
'Cause there's no one like you in the universe
Jan
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debtinfo
forum expert
2826 Posts |
Posted - 13 October 2011 : 09:49:42
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| The question here is whether the policy is assigned to the mortgage which i am guessing it is not |
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carl
Junior Member
115 Posts |
Posted - 13 October 2011 : 10:19:25
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Hello
The policy isn't assigned to the mortgage and is a cash payment in to my estate on death.
Carl |
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debtinfo
forum expert
2826 Posts |
Posted - 13 October 2011 : 11:18:26
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| Then you are in the clear |
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carl
Junior Member
115 Posts |
Posted - 13 October 2011 : 12:48:48
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Thank you Debtinfo - but I am still alittle confused by it all!!
I understand the the OR has no interest in my Life Assurance Policy because i have purchased there interest in it back for £50.00 and I am now discharged with no IPA etc.
My query relates to the property and are as follows:-
1) As I understand it, technically the property is no longer in my name and the interest in it is now held by the OR until they decide to deal with it? Is this right exactly?
2) If I were to die before they have made a decision to deal with it, am I right in thinking that my Life Assurance Policy will be used to repay the Mortgage/Secured Loan company of any outstanding Balances. So technically the property will be mortgage free until my family decide what they intend to do with it? But how can they deal with the property i.e sell it I presume when the interest in it still belongs to the OR? Im presuming the OR just wont re invest it back to my family for free?
Not sure that makes any sense and Im sorry for the morbid post but I am just updating my Will and have just thought about this issue relating to my property.
Thank you again
Carl |
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debtinfo
forum expert
2826 Posts |
Posted - 13 October 2011 : 18:32:51
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ok, since the policy is not assigned to the mortgage, you need to think of them as 2 totaly separate things, the life policy has nothing to do with the mortgage even if that is what you originally intended on when you took it out, so since you bought it back, it is yours and if you die it pays out to your estate and whoever inherits that.
Now the house is a separate matter, it currently vests with the trustee (so basically hie property. If you die before it revests then it wiyll just continue to be part of the bankruptcy estate with the full value and the full mortgage so part of the estate but not worth much, you could just leave it like that and since you would not be paying the mortgage it would get repossessed and the shortfall written off because it is still part of the bankruptcy, or if it had sentimental value the beneficiary of the estate could ask the trustee if they could buy out the interest, Bearing in mind it still has the full mortgage against it, that would not cost to much |
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Property where the OR holds the BI
