| Author |
 Topic  |
|
Maz
Junior Member
United Kingdom
239 Posts |
 Posted - 16 January 2009 : 09:41:36
|
| We have included the potential shortfall in our SOA if our house is repossed but want to hold on to it even though it is negative equity. If we stay and pay the mortgage for a couple of years and then find we can't afford is it are we liable for the shortfall once the property is sold? thanks |
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 16 January 2009 : 10:05:46
|
Maz
Are you going to buy the BI in order to keep it or hold out and wait and see what the OR decide to do?
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
|
 |
|
|
Maz
Junior Member
United Kingdom
239 Posts |
Posted - 16 January 2009 : 10:08:09
|
| We have been offered the BI. The house is worth about £250K but we owe £390K. Don't know what to do. |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 16 January 2009 : 12:05:56
|
Its a tricky one, if you buy the BI then in the future it wont be included as it will be out of the bankruptvy, i think. I may be wrong but once bought its back to you and your liable.
So you will have to think about this one very carefully.
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
|
|
|
|
Maz
Junior Member
United Kingdom
239 Posts |
Posted - 16 January 2009 : 12:25:24
|
| So do you think if we don't buy the BI but in say three years time can't afford the mortgage the potential shortfall will still be included in the BR as it's on our SOAs??? Thanks |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 16 January 2009 : 13:13:48
|
Hi Maz,
The official line from the OR is that as long as the mortgage pre-dates the BR, then any shortfall that arises in the future from reposession will be included and written off retrospectively in the BR.
Having said that, with so much negative equity, do you really want to keep the property?
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 16 January 2009 : 13:18:24
|
Julian
What happens if you buy the BI then in a few years lose the house, what happens with the shortfall then.
How long will that be in place for so if your discharged, you bouth the BI but in 4 years you lose the house, then what, where do you stand then.
Thanks
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
|
Edited by - Needafriend on 16 January 2009 13:19:29 |
|
|
|
Maz
Junior Member
United Kingdom
239 Posts |
Posted - 16 January 2009 : 13:59:52
|
Hi Julian
The only reason to stay in the house is an emotional one, both our children like it here and don't want to move and I don't want to upset them unless it's absolutely necessary. In three years when my youngest starts secondary school it won't be so bad as the school isn't near our home like the junior school is. If we manage to pay for the next three years but then find we can't after that and let the house be repossessed then from what you said in your last reply, we won't be liable for the shortfall, is that correct? thank you |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 16 January 2009 : 14:58:41
|
Hi all,
As long as the mortgage pre-dates the BR, any future shortfall SHOULD be retrospectively included and written off in the BR, irrespective of who has the BI.
However, I always prefer to operate a "belt & braces" policy and ensure reposession has occured prior to BR, if not actually clearly identifying the exact amount of the shortfall.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
|
|
|
Maz
Junior Member
United Kingdom
239 Posts |
Posted - 16 January 2009 : 15:23:19
|
Hi Julian
Bit tricky that as we went BR in September. Will just have to hope it works out. Thanks. |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 16 January 2009 : 15:34:20
|
Hi Maz,
As long as the OR is aware that reposession is a possiblity, you'll be fine!
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 16 January 2009 : 16:05:28
|
Julian
That did not help me as pix i think it was said if you continue to pay your mortgage then your liable, i am paying my mortgage and gonna try and keep my house, in the future who knows, its on the SOA but in a few years down the line things may change, then if we default and the house gets repo'd then i take it we will be liable for that, as it will be past the bankruptcy date and past discharge.
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
|
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 16 January 2009 : 16:52:31
|
Hi Jo,
As I said, as long as the mortgage pre-dates the BR, any future shortfall SHOULD (allegedly) be retrospectively included and written off in the BR, irrespective of who has the BI, and without time limit (so in theory, repo could happen in 5 years time and shoprtfall still retrospectively written off).
However, I always prefer to operate a "belt & braces" policy and ensure reposession has occured prior to BR, if not actually clearly identifying the exact amount of the shortfall.
This scenario has still to be tested under the Enterprise Act. The worst case scenario is a repo in a few years time and another BR to write off the shortfall.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 16 January 2009 : 17:25:27
|
Thanks Julian
I dont intend to let it go but just wondered really.
Have a great weekend
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
|
|
|
|
Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 January 2009 : 18:38:51
|
Hi
I don't think this has been tested in court yet, however I have many clients who have initially decided to try to keep the house ( negative equity etc) during Br but on reflection X months in they have elected to hand the house back.
This is for a number of reasons but promarily because the negative equity is gust getting bigger and in reality it could be 5 - 10 years before they are at break even again.
I haven't had any issues with this but have not tried to do it AFTER the BI has been sold and the OR has technically eliminated the house and their interest in it from the estate.
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
Real People ..... Real Debt Solutions
www.revivauk.com |
|
|
|
Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 16 January 2009 : 18:55:20
|
TBH Paul,
My OH & I have talked about that and the fact that may take many years for the value to even out again and we feel that its a risk worth taking.
We are not here for an investment its just our home, we can afford the payments and at this moment in time we dont see any reason why we should line anyones elses pockets with rent when the rents where i am are the same as my mortgage.
If the value drops and drops then thats life, we have no secured debts on the house, just the mortgage and for us we dont in tend to give it up and let it get repo'd, regardless of the markets.
If it became necessary and out of our hands and had to be repo'd then we will cross that bridge then, if its after BR and it was not included then we would have to look at a 2nd bankruptcy but thats not even worth thinking about as it may never happen.
I know its a big decision to make and we have had 9 months talking about the house and what is best for us and we feel we are doing the right thing.
LOL
Jo
x
Needafriend says:
Just always remember one thing, Your not alone, your not the first and you wont be the last.
23 Weeks down
29 to go
For more info on how i have come through bankruptcy and for links to help with filling out the forms, I&E, Car Valuations, etc, etc, you can read my blog here called:~ Needafriend's Info on Bankruptcy :-)
http://debtfreejo.blogs.bankruptcyhelp.org.uk/
|
|
|
|
Topic |
|
timescales!!
