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kj.g
Starting Member
1 Posts |
 Posted - 14 February 2009 : 14:04:39
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| my wife and I own a home with 3 children we are in negative equity of about 25000 we dont want to lose our home but my wife is in about 20,000 debt and we have both lost our jobs and we cant pay. firstly can my wife declare bankruptcy on her own and is it likely they will force the sale of our home even though there is no equity |
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RHB
Senior Member
1159 Posts |
Posted - 14 February 2009 : 14:11:43
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| How will you pay your mortgage if you are both out of work? This will probably be the main problem you have. |
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John
New Member
United Kingdom
73 Posts |
Posted - 14 February 2009 : 14:19:37
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Hi
if your house is in negative equity then the house will not be lost in bankruptcy.
If you have no debts then your wife can declare bankruptcy on her own and you will then be able to buy her beneficial interest in the property for £212 in total.
You will of course first need to find employment in order to continue servicing the mortgage payments, if not the mortgage lender will eventually repossess.
Depending on what your monthly mortgage payments are you need to consider whether the property is worth holding onto. With £25K negative equity you are effectively renting already, would renting a similar property be cheaper?
timendi causa est nescire
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pix1
Average Member
689 Posts |
Posted - 14 February 2009 : 15:41:31
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ky.g,
I would add that you should put in a claim for mortgage interest to be paid by the benefits service. You would have to wait something like 9 months for them to start paying but, if you are not yet in mortgage arrears, you may be able to negotiate something to tide you over until the state starts paying your interest. Rememebr, that the government has been cajoling mortgage companies to do all they can to KEEP people in properties and avoid repossession where possible.
Another possibility worth looking into is a sale and rent back BUT only one of the new schemes where a local authority buys it and rents it back to you. Private ones could just lead to being booted out a year or so later!
Make sure you maximise all possible benefits and emphasise you have 3 children.
As John says, you could also try to find work but that is against a bad employment climate.
Yes, you could do something along the lines of the above and your wife could still go bankrupt and you could buy the beneficial interest from her. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 15 February 2009 : 14:05:01
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Good luck with finding a job. I hope that you're successful and can stay in your home x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
View my blog at http://skippy13.blogs.bankruptcyhelp.org.uk/
20 IPA payments made, 16 to go - on the home straight! |
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hadenuff
Starting Member
43 Posts |
Posted - 15 February 2009 : 14:35:18
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Since January 5th or 6th this year they have reduced the wait for help with your mortgage from the DWP to 13weeks for new claimants. They have capped it at something like 6.08% until May. Pretty good considering the low interest rate now and a lot of people are still in fixed rates at 6% or 7%+.
Yes another new scheme is for the local authority to buy your house and rent it back to you. However they WILL NOT do it if you are in negative equity. |
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my wife and I own a home with 3 children
