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nathan_a
Junior Member
United Kingdom
173 Posts |
 Posted - 20 August 2008 : 06:23:02
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Hi
If a property is handed back to the mortgage lender and I go bankrupt, will I be resposible for the shortfall that may come if the property takes a few months to auction off by the lender
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 20 August 2008 : 08:14:32
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Hi Nathan
I am about to do the same thing.So long as it is included in the secured and unsecured poart of the form and you put possible shortfall it gets written off in the bankruptcy.
Hope this helps |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 20 August 2008 : 08:26:39
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Hi Morning,
I had to put mine in my SOA and place Possible shortfall and although we are still living here at present the house will be gone within the year as we wownt be able to afford it so it should all get added into the BR and cleared off.
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 20 August 2008 : 10:43:11
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Hi,
I'm currently thinking of doing the same thing. Has anyone any idea of the timescale or sequence of events?
Do I find somewhere to rent and then hand the keys back then declare myself BR in a short space of time? Or can I declare myself BR then hand the keys back next month or the month after (I haven't missed any mortgage payments)?
Don't really know what the best way of doing it is....
Many thanks |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 20 August 2008 : 10:47:29
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Grantspants,
We declared BR and we are just waiting now. The OR will put a charge on the house so they can get there bit and they are aware that we may not be able to afford to live here next year when out mortgage offer ends so then the house will need to be sold.
I will be looking to rent from May next year because i want to stay till then as eldest son has important exams and also i know we will be struggling and hopefully the OR or whoever takes it on will allow us to put it on the market. We wont get anything back as they want the equity in it and we wont be buying the BI as there is no point.
It all depends on if you pay your mortgage, if you get 3 months in arrears then the mortgage co can start repossesion proceedings and then that can take about 6 weeks or so before you will have to be out.
You could do it that way or wait and see what the OR wants you to do.
Do you have any equity in the property?
Hope i may have been of some help.
Jo
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
Edited by - Needafriend on 20 August 2008 10:49:46 |
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nathan_a
Junior Member
United Kingdom
173 Posts |
Posted - 20 August 2008 : 14:39:18
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| so will I have to write in the unsecured creditors list the possible shortfall from the secured lender. |
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John
New Member
United Kingdom
73 Posts |
Posted - 20 August 2008 : 15:46:35
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Hi
yes then you'll know the shortfall will be included despite the fact the house is not sold at the time of your BR.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 20 August 2008 : 16:06:38
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Jo,
I don't have any equity in it no, I owe 138000 and last valuation was 120000 but that could be less now. So let me get this straight, I can put any possible shortfall on the unsecured creditors list on the forms (guess the amount?) and then go BR and hand the keys back later (maybe one month)? If i'm going to rent, I will need to miss a months mortgage payment in any case to afford the deposit etc.
Does this sound like the correct sequence of events?
Sorry if I hijacked anyones topic here folks too
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BankruptC
Senior Member
1030 Posts |
Posted - 20 August 2008 : 17:00:57
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Hi grantspants,
We are in a similar position to you, but have done things in a slightly different order. We have now moved into rented and inted to go BR at the beginning of September (we also need to wait a while now we've paid the deposit etc on the rented house before we have the BR fees). The reason we did it this way was that we knew we'd struggle to finda rental property once BR (advice received on here). Most lettings agencies, if they will look at you at all post BR, will want up to 6 months rent in advance as well as the deposit.
We now intend to post the keys back to the mortgage company with a letter explaining our intentions for BR.
This is just how we've done it and as long as you're sure you can get a rented place ok then I don't see a problem with the way you plan to do it. As far as the SoA is concerned, I plan to write the words 'possible shortfall' for the amount for the secured loan and mortgage in both the secured and unsecured sections.
Hope that helps a bit.
CG.x
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 20 August 2008 : 17:15:32
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Hi Grantspants,
Like Ian says its up to you which way you do it, we wont be looking at the rental side till we are discharged next year as we will just muddle through till then and hopefully we will be discharged and it may be different. You can however just find a private rented place which unlike the agencies dont ask for many months in advance for deposits.
While it is a pain when you have become BR to get into rented its not impossible and like i have said its up to you.
We did not do it before BR because we just wanted the OR to take on the equity we have in the house and deal with it their way.
Good luck in whatever you decide its up to the indivdual, I looked at renting before but with the debt letters and calls mounting up I wanted to have the Bankruptcy done and out of the way and then think about the house.
I hope i helped in some way everyone does it their own way, which ever is best for you some do it before some do it after.
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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grantspants
Junior Member
United Kingdom
297 Posts |
Posted - 20 August 2008 : 19:10:22
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thanks v much for all the help folks, i'm in a bit of a pickle deciding what to do. I'm currently viewing properties with my wife so I can be sure she will be happy there. Its such a shame as the house we have has plenty of space and is really handy for us for work etc. I feel terrible about it, and the thought of missing payments doesn't sit well with me but its the only way I will afford the deposit on a rented place. But its all down to me really, I got myself into this mess, it's up to me to get out of it. We are newly married, just want a clean slate without my wife having to pay for my past, although she is in some ways already. What a life huh?
Thank you again folks, its nice to know i'm not alone out here |
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will I be resposible for the shortfall ?
