Hi, we have a 1st charge with Northern Rock for £300,000 and a 2nd charge with Barclays of £98,000. Our house is worth about £280,000. We were both delcared bankrupt last week. What would happen if we were unable to pay the 2nd charge but carry on paying the 1st charge as the house is in negative equity there would be no point in the OR selling it. This is very confusing!!!!
As you are in significant negative equity, if the property were to be reposessed during your BR, you should be able to get this shortfall written off (but ensure the OR is aware of it).
Julian Donnelly Spokesperson for www.Bankruptcyhelp.org.uk Don't forget the helpline on 0800 078 9367
2nd mortgage
Posted - 05 September 2008 : 12:41:45
