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Nina.39
Starting Member
10 Posts |
 Posted - 31 March 2012 : 15:12:23
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| Does anyone know what happens to the mortgage when someone goes bankrupt in that does the OR take charge and it becomes one of the assets ie; the mortgage company loses control and it is down to the OR to decide whether to sale or not? While we continue to pay the mortgage can we stay there until told otherwise by the OR - also what about the secured loans do we continue to pay them as well or do they lose there power to force sale when someone goes bankrupt? |
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 31 March 2012 : 15:16:11
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You need to continue to pay your mortgage and secured loan if you want to stay in your home.
The official receiver is interested in the bankrupt's share of the equity.
How much is the house worth and how much is owed in secured lending?
How much is your debt?
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Nina.39
Starting Member
10 Posts |
Posted - 31 March 2012 : 16:41:37
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The mortgage is approx £183000, the house is worth approx £250000, and the secured loans amount to £74000. A lot I know!
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 31 March 2012 : 17:04:32
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As it's in negative equity, if you want to stay in your home, then you need to carry on paying the mortgage and secured loan. The OR will value the property again in 2 years and 3 months from the date of the bankruptcy and deal with any equity then, if there is any.
If you want to hand the keys back to the mortgage company then they will reposses and an shortfall with be covered in the bankruptcy, however, if it's just your husband going BR and not you, then you would be chased for the shortfall.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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debtinfo
forum expert
2826 Posts |
Posted - 31 March 2012 : 17:16:55
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| how much are the payments on your mortgage and secured loan and how do they compare to a suitable rented property in the area |
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Nina.39
Starting Member
10 Posts |
Posted - 31 March 2012 : 17:56:36
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We think we will prob just hand them back cus with the mortgage and secured loans we pay £1700 per month and its crippling us! We cud prob rent a nice house for £800 per month the only thing I'm worried about is raising deposit and having to do the credit check for we will not pass it!
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Carolynne
Starting Member
7 Posts |
Posted - 31 March 2012 : 18:14:00
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quote:
Originally posted by Nina.39
We think we will prob just hand them back cus with the mortgage and secured loans we pay £1700 per month and its crippling us! We cud prob rent a nice house for £800 per month the only thing I'm worried about is raising deposit and having to do the credit check for we will not pass it!
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Carolynne
Starting Member
7 Posts |
Posted - 31 March 2012 : 18:16:27
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Sorry replied before I had put message on. I am no expert, but from my experience, we handed back our keys and decided to rent. We found a letting agent who did a basic credit check and as we had the deposit and one months rent up front, they were happy with that. Not bankrupt as yet, we wanted to be settled in rented property before applying. Good Luck!
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Nina.39
Starting Member
10 Posts |
Posted - 31 March 2012 : 18:32:55
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Thanks for that - Good luck 2 u as well - from what I can gather lots of people are handing their keys back!
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Viki.W
forum expert
United Kingdom
2211 Posts |
Posted - 31 March 2012 : 18:49:05
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As Carolynne has said, if you want to hand the keys back, get yourself into rented accomodation before the bankruptcy.
Stop paying the mortgage and secured loan to save up for your deposit.
With the monthly amount you are paying for your secured lending, and the fact that you can rent for half that amount, you more than likely would not have been allowed that expenditure.
Please make sure you speak to an expert before doing anything.
Viki Warbrooke
Vincent Bond & Co
If you would like free advice on all options available and help with your bankruptcy petition please contact me at http://www.vincentbond.com/about_us_Viki_Warbrooke.asp
Please read my experience of debt via my blog at http://vikiw.blogs.iva.co.uk/ |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 02 April 2012 : 09:36:06
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Hi Nina
as Viki as stated, if your intention is to hand the keys back on your property, you would be advised to cease payments on your mortgage and secured loan prior to filing for bankruptcy (anything up to 3 months prior) and use the money that would normally be used to meet your mortgage and secured loan to fund your rental deposit etc
Hope this helps, Melanie
Melanie Nicholas CertDR
30+years insolvency experience - 23 of which in the Insolvency Service and the past 8 years with a number of IP firms. I can be contacted at www.lifestylemoney.net or via the experts tab |
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What happens to the mortgage in bankruptcy ?
