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c.j
Junior Member
171 Posts |
 Posted - 05 April 2009 : 17:05:04
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what happens to a secured loan in bankruptcy?
My mortgage is approx. £110,000 with a secured loan of £12,000 {18,000 with interest} ive not had a recent valuation though i paid £125,000 4 years ago, would imagine worth a lot less at the moment.
Losing my house is my main worry about going bankrupt does anyone know if this mihjt happen. i am in an iva at the moment waiting for a variation meeting to lower payments. Bankruptcy may be my only option if this fails. |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 05 April 2009 : 17:50:01
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If you are in negative equity when you go BR the OR will offer you the Beneficial interest in the property for £1 plus costs (£211 i think)
If you want to keep the house and can afford the repayments then you buy the BI, if you don't want to keep it or can't afford it then the house gets repossessed and sold, any shortfall in what is secured on it becomes an unsecured debt and is covered in BR
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
Life's too short!!! |
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Sunshine_Girl
New Member
77 Posts |
Posted - 05 April 2009 : 18:23:32
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It's not £211 - it's £474, I'm afraid. And bizarrely, they require a cheque, which is impossible for a bankrupt! I'm sure there are ways round it, though, if you have online banking.
By the way, if you allow repossession by your mortgage company voluntarily, you can have the secured loan discharged along with your other debts, though I doubt that would be worth it for just a £12 000 loan.
SG |
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markm
Junior Member
United Kingdom
115 Posts |
Posted - 05 April 2009 : 18:31:27
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Hi cj...
My house was valued last April... In my bankrupsty... for the trustee to sell my house on the open market...
It was valued at £124000...
forced sale in december...
put it on the market £8999...
they were goner sell it for £70000... last week...
£29000 we owe on the morgage...
My regards lil shaza. (markm) |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 April 2009 : 19:55:46
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Hi Sunshine Girl
the fee is £211 for joint owners and approx £474 in legal charges for a sole owner. If you have been charged £474 as a joint owner this is high unless you are personally buying back your own BI rather than nominate a 3rd party.
John White
England Jackman & Spacey |
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Sunshine_Girl
New Member
77 Posts |
Posted - 05 April 2009 : 19:58:31
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Fair enough. I am the sole owner, so that does make sense. Thanks for clearing that up.
SG |
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John
New Member
United Kingdom
73 Posts |
Posted - 05 April 2009 : 21:12:51
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Hi
the bizarre thing is that if both joint owners declare bankruptcy the fee is still £211 (+£1 for each bankrupt party).
I'm not up on conveyancing legislation but I believe the higher fee for a sole owner is because the title deed itself requires revision whereas with joint tenancy or tenants in common this does not apply.
John White
England Jackman & Spacey |
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Topic |
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secured loan
