I have seen on a couple of posts about people buying a bankcrupts interest in the property, eg partner or husband. I was just wondering how this works? My house is possibly in negative equity (if you count the unsecured loan attached to my mortgage) but would still like to keep the house if i can. Any help you can give me would be greatly appreciated! This forum has been a godsend, and made me realise im not on my own!! xx
When you have negative equity the OR can ask you to get a 3rd party to buy the BI for £1 plus fees of £211 which can then be bought back by you after discharge. If both of you go BR then say your mum or dad or a friend could do this for u, i dont think your allowed to do it yourself im not sure.
If only ones goes BR then the other person ie: your OH can buy the BI again for the £1 plus £211 fees.
Hope that helps
Jo x
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Thanks, does that mean that you get to keep the property if you keep paying the mortgage? And any sale in the future you would get the equity from the property? Sorry, so many questions! xx
Hi yes if you keep paying the mortgage you will keep the property if it is in negative equity the process is as described by Jo. Once the BI has been sold by the OR he has no future recourse if the value soars and equity exists.
Just to add you cannot include an unsecured loan in the calculations. Only secured lending. I am presuming you have a "together" mortgage with Northern Rock?
buying a bankcrupts interest in property
Posted - 02 October 2008 : 19:16:59
