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Sunshine_Girl
New Member
77 Posts |
 Posted - 16 February 2009 : 21:54:53
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Hi
I recently filed for bankruptcy and have a query about my secured loan which still stands.
First, some approximate figures:
Value of my home: £89 000 (valued by both Halifax and Whitegate’s)
Mortgage outstanding: £78 000 (Cheltenham & Gloucester)
Secured loan outstanding: £68 000 (Picture Finance)
My secured loan currently costs me around £700 pcm in instalments, which are due to continue for another 23 years or so.
As you can see, I’m in negative equity, so my home has not been repossessed as part of the bankruptcy. However, the OR has explained that, were I to stop making mortgage and secured loan payments, both these debts would be written off but, of course, I would lose my home. It strikes me that my secured creditor would lose out drastically if this happened, as most of the money from the sale would be given to my mortgage company and not much would be left for them.
Therefore, is it feasible that I could approach my secured lender and negotiate a compromise on what I owe them, i.e. write off a large portion of the debt? They wouldn’t get as much back as if I repaid the debt in full but they would be better off than if they and the mortgage company repossessed and sold my home.
I would appreciate some advice on this matter, as the monthly payments are so substantial that I am seriously considering stopping them and allowing repossession but, as you will appreciate, keeping my home whilst reducing my monthly instalments would be a much more appealing option. Moreover, do you know of any precedent to this proposal or other bankrupts who have successfully negotiated a reduction in the amount owed on a secured loan?
Many thanks for your time
RD |
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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 16 February 2009 : 22:32:37
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hi
a good idea in principle as it would clearly reduce you secured debt and therefore your monthly outgoings considerably.
In practice I strongly suspect that Picture would not be interested but always worth a shot.
It may be worth you considering whether actually want to pay £146,000 for you house which after interest over the next 25 years will be nearer £325,000.
You should also consider that after you sort out the beneficial interest with the OR that if you were unable to maintail the mortgage payments in say 2 years and had the house reposessed that this would create a new debt.
There is a lot to consider so alwats worth taking your time and thinking about all the options carefully
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
http://www.revivauk.com
Real People ..... Real Debt Solutions
www.revivauk.com |
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HiI recently filed for bankruptcy
