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sleeplessnights
Junior Member
United Kingdom
256 Posts |
 Posted - 04 October 2008 : 16:37:44
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Hi all,
Me and OH have BR Court on Monday 6th October at 0915 & 0930.
We have been discussing things and were initially worried that we would lose the house.
Having looked at everything and thought things through, we have decided that we would be better off giving the house up.
This is were the problem arises.
Current market value £110K - £120K
1st Mortgage Northern Rock £110K
2nd Mortgage Picture £ 53K
Q1 - What do we need to do - is it as simple as finding alternative rented accomodation and ringing NR & Picture and advising them we have gone BR.
Q2 - What happens with the shortfall of c £43K with picture.
Cheers
Matt |
Edited by - sleeplessnights on 04 October 2008 16:51:26 |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 October 2008 : 17:17:44
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Hi Matt,
You will need to ensure you detail NR and Picture in the unsecured section of the SOA as well as the secured section, with "shortfall following reposession" as the reason for the debt. This way, you can ensure that once the property has sold at auction and the shortfall crystalises into a new unsecured debt, it can be included and written off in your BR.
Having said that, you may well find getting a rental a struggle as most (if not all) letting agents perform a credit check. It is not uncommon for an undischarged BR to be asked to provide a guarantor and/or 6 months rent in advance.
I would suggest that if you are serious about giving up the house, you may want to postpone your BR for a few weeks in order to get a rental organised etc.
This can be managed effectively, but the timing of the events will be crucial. Please feel free to discuss this further with one of my colleagues on the helpline who should be able to advise you further.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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BankruptC
Senior Member
1030 Posts |
Posted - 04 October 2008 : 17:18:10
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Hi Matt,
We did exactly the same thing. We decided it best to move prior to BR though, as we were concerned about not passing credit checks for the rented house after BR. There are ways round this though, by finding a private landlord through the small ads or in a newsagent's window etc (as they don't do credit checks) or by approaching lettings agents to see if they can help you (they may ask for a guarantor or a few months' rent up front for example).
We then went BR, ensuring we included the mortgage and secured loan in BOTH the secured and unsecured sections of the petition, and making sure we wrote the words 'possible shortfall' next to it each time (we had to hand write this as there was no space for it onthe online form). This will ensure you are not liable for the shortfall.
Then, once we were BR, we wrote a letter to the mortgage company (enclosing the keys, recorded delivery) and the secured loan company, saying something like :
'Re Account Number _________, Property Address ___________. Please accept this letter as written confirmation that I am handing back the above property to you, the Mortgage Company, as I can unfortunately no longer meet the monthly repayments. Please find enclosed the keys to the property, and please direct any further correspondance to the Official Receiver's Office, (Name of City and address of office).'
A tip I got from here was NOT to include our new address on the letter. Although the creditors can find us on the insolvency register if they really want to, I'd rather not make it easier for them! ;-)
We went to the house a week or so later and the mortgage company had taken possession. Now we're BR, the OR deals with it all for us. It really was quite simple (or it has been thus far anyway!)
Hope that helps a bit and let me know if I can help more! :-)
C. x |
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BankruptC
Senior Member
1030 Posts |
Posted - 04 October 2008 : 17:24:14
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Oooh you just beat me to it, Julian! I could have saved my 'War and Peace' for another time, if I'd known! ;-) (teehee)
Hope you're enjoying your weekend!
C. x |
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got there
Junior Member
United Kingdom
461 Posts |
Posted - 04 October 2008 : 17:27:38
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| Do you have to write to the mortgage company and send keys back?? - not got anything sorted yet rental wise and council say they cant help until I have court papers from mortgage company. TIA. x |
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sleeplessnights
Junior Member
United Kingdom
256 Posts |
Posted - 04 October 2008 : 17:32:04
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Many thanks, we can move in with parents if needed as a temp measure if any of the letting agents wont entertain us.
My OH brother said he would rent a house in his name stating we are all 1 big family living under one roof. I suppose that is another way around it.
Thanks for the replies, and especially the 'possible shortfall' in the Secured and unsecured sections.
Regards
Matt
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BankruptC
Senior Member
1030 Posts |
Posted - 04 October 2008 : 17:37:11
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No worries, Matt. Let us know if there's anything else we can do.
Good luck with it all!
C. x |
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BankruptC
Senior Member
1030 Posts |
Posted - 04 October 2008 : 17:39:15
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Hi gettingthere,
Yes I believe you will need to let the mortgage company know your intentions and post the keys back to them. As I said it was totally painless for us-they just took possession.
Let us know how it goes! :-)
C. x |
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got there
Junior Member
United Kingdom
461 Posts |
Posted - 04 October 2008 : 17:46:42
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Thanks C
from what i have gathered from here 3 payments have to be missed before they can start legal action, and them send me any legal paperwork, which the council need from me. Do i have to inform them now, as apart from cancelling the DD I have made no contact with them thus far. I would rather hold out for a council property as would be more secure for kids. thanks for your advice and hope you are feeling better today. x |
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BankruptC
Senior Member
1030 Posts |
Posted - 04 October 2008 : 17:53:25
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Hi again getting there. Thanks for asking, I'm ok
:-)
Are you waiting for them to repossess then? In this case they'll know to repossess. Both Matt and I were talking about voluntary repossession.
C. x |
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got there
Junior Member
United Kingdom
461 Posts |
Posted - 04 October 2008 : 18:02:15
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| Hi C, yes going to sit tight hopefully til January, first payment missed 1 oct, so anything after 1 dec they can start proceedings. I am a bit apprenhensive as dont want an unsettled xmas, and am thinking of possibly moving into a private rental before xmas (not sure what would be best for kids)Council wont help until I have court papers so a bit of a catch 22. Glad you are feeling better. x |
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BankruptC
Senior Member
1030 Posts |
Posted - 04 October 2008 : 18:08:52
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Yeah that is a tricky one. Maybe have a look round and see what you can get privately while you wait and see what comes up? Have you gone BR yet?
C. x |
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Nicola.j
Junior Member
United Kingdom
267 Posts |
Posted - 06 October 2008 : 14:10:32
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Hello Matt
I too have just done the same thing and had a secured loan with Picture.Just to let you know you may get phone calls threatening income payment orders which I did before I went BR and then the day I was moving out they rang and said how was I going to pay thge secured loan until the house was sold.I basically said I had no money to do so and I havnt heard from them since.
Kind regards
Nicki
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sleeplessnights
Junior Member
United Kingdom
256 Posts |
Posted - 06 October 2008 : 15:17:10
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thanks Nicki,
I already called Picture today to tell them I am bankrupt and my a/c manager was really really helpful. He told me that he deals with bankruptcy problems everyday and that could I call him when we vacate the house so they can then get in touch with Northern Rock.
Cheers
Matt |
Edited by - sleeplessnights on 06 October 2008 17:24:30 |
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Drastic but true to oneself
