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CallMeAndy
Starting Member
11 Posts |
 Posted - 18 April 2009 : 15:45:25
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Both myself and my wife are filing for BR. But still I am confused about the possibility of holding onto the family home.
1) As we will both be BR can either of us buy the BI in the property or does it need to be a third party?
2) What happens if we don't buy the BI in the property, (currently I believe it to be in negative equity) does that mean we no longer own the property?
3) If we no longer own the property does that mean that the mortgage company can sell it from under us as and when they please?
4) As to whether we can afford to continue paying for the property at the moment we don't know as we are waiting to hear from the benefits office about how much of the interest will be paid on our behalf, we are both now on Job Seekers Allowance. The mortgage was converted to interest only a couple of months before we decided that BR might be our only route (now obviously so) and I am presuming they wont pay it all. Has anybody any experience with this?
We don't really want to wait any longer until we file as the CCJ's are about to start flooding in and presumably the bailiffs not long after that.
Thanks guys! |
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RHB
Senior Member
1159 Posts |
Posted - 18 April 2009 : 16:22:56
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| Is it just a mortgage you have or have you any secured loans as well? This could make a difference because obviously you would have to find any money for a secured loan. I would imagine the interest will be paid by the state, I believe this kicks in after 3 months now instead of the 9 it used to take.Whether there is some sort of limit to bow much they pay I don't knowI'm afraid. |
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CallMeAndy
Starting Member
11 Posts |
Posted - 18 April 2009 : 16:38:06
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| The mortage is the only secured debt. Yes it's 13 weeks now for this process to be effected but I was told by the department that process these requests that they work according to thier own formula and therefore the amount that they will cover is not neccessarily going to be the same as what the mortgage company charge in interest hence the question as to whether anybody has experience of this in practice. |
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ripski
New Member
United Kingdom
90 Posts |
Posted - 18 April 2009 : 18:04:56
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My house is in neg equity I was told that if you continued to pay the mortgage then they would or could not throw you out. Until you were ready to go. I am as confused as yourself re Beneficial Interest. Someone recently said approach the council as the govt were encouraging them to buy the home and rent it back to you Personally not done this but am sceptical unless you are a family and it would be cheaper to do this rather than rehouse, it's worth a try but my understading is that you are safe as long as you pay the mortgage. An expert will be along I am sure.
ripski1 |
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RHB
Senior Member
1159 Posts |
Posted - 18 April 2009 : 18:52:31
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| How much is the mortgage interest? If it is cheaper than paying housing benefit for you to rent a property I would imagine they would pay it. |
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CallMeAndy
Starting Member
11 Posts |
Posted - 18 April 2009 : 21:35:12
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quote:
Originally posted by RHB
How much is the mortgage interest? If it is cheaper than paying housing benefit for you to rent a property I would imagine they would pay it.
Yes well that seems a reasonable supposition and I think it works out at £503 so comparable to rent around here for a small fmaily place, at least when we last rented 2 1/2 years back. |
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CallMeAndy
Starting Member
11 Posts |
Posted - 18 April 2009 : 21:43:14
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quote:
Originally posted by ripski
My house is in neg equity I was told that if you continued to pay the mortgage then they would or could not throw you out. Until you were ready to go. I am as confused as yourself re Beneficial Interest. Someone recently said approach the council as the govt were encouraging them to buy the home and rent it back to you Personally not done this but am sceptical unless you are a family and it would be cheaper to do this rather than rehouse, it's worth a try but my understading is that you are safe as long as you pay the mortgage. An expert will be along I am sure.
ripski1
To be honest if I am going to loose it some months down the line I have no other choice for the moment anyway but if they allow me to keep paying for some years on and then pull the rug because the market has improved and they can make their asset liquid again it will be a kick in the teeth (I would rather rent a better proprty for the same money with the help of my mother for the six months rent in advance)
If they cant kick me out what am I buying with BI - what is that? |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 18 April 2009 : 22:28:32
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When you become BR the beneficial interest in your home then belongs to the OR. By buying the BI in the property you are effectively buying your home back and once this is done the house is yours and the OR cannot claim it in the future.
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/
22 IPA payments made, 14 to go - on the home straight! |
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CallMeAndy
Starting Member
11 Posts |
Posted - 18 April 2009 : 22:48:22
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quote:
Originally posted by Skippy13
When you become BR the beneficial interest in your home then belongs to the OR. By buying the BI in the property you are effectively buying your home back and once this is done the house is yours and the OR cannot claim it in the future.
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/
22 IPA payments made, 14 to go - on the home straight!
And the bankrupt parties are able to be directly in this transaction not third parties only?
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RHB
Senior Member
1159 Posts |
Posted - 19 April 2009 : 08:25:49
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| I think it woulld maybe be best in your situation NOT to rush to buy the BI until you have an idea of whether or not you can continue to afford the mortgage. If you buy the BI & after discharge you get behind with payments & are repossessed, the shortfall would not then be covered & you are back in debt again. You don't have to do it straight away. |
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CallMeAndy
Starting Member
11 Posts |
Posted - 19 April 2009 : 08:42:42
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quote:
Originally posted by RHB
I think it woulld maybe be best in your situation NOT to rush to buy the BI until you have an idea of whether or not you can continue to afford the mortgage. If you buy the BI & after discharge you get behind with payments & are repossessed, the shortfall would not then be covered & you are back in debt again. You don't have to do it straight away.
Meaning include in the SOA £1 for the unsecured shortfall but later buy the BI. Is it definite that the OR will sell it to me? and does this mean any time before discharge? |
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RHB
Senior Member
1159 Posts |
Posted - 19 April 2009 : 10:56:36
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| One person on here bought the BI quite a bit into her BR, she wasn't sure whether or not it was the right thing to do to begin with. |
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CallMeAndy
Starting Member
11 Posts |
Posted - 20 April 2009 : 19:31:02
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Thanks guys for the comments so far. the thread brought up some additional related questions then -
Is it definite that the OR will sell the BI to me?
Is it always for the some of £1 if in negative equity?
and does this mean I can make the arrnagement any time before discharge? |
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John
New Member
United Kingdom
73 Posts |
Posted - 20 April 2009 : 22:37:50
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Hi
it is the case you will be offered the opportunity to buy back the BI.If it is in negative equity then it will be offered to the joint owner for £1 a fees of £211. If you are the sole owner the BI will still be £1 but the fees are nearer £500.
You can make the arrangement before or after discharge as long as it is within 3 years of the date of the bankruptcy. You could gamble, watch the market and regularly reassess the equity situation in your property. If the negative position remains to the 3rd anniversary of your bankruptcy the OR will not try to sell to anyone else and if you haven't offered to buy the BI the property will automatically revest in you.
So basically, the whole idea of purchasing BI when in negative equity is to negate any risk of equity being present by virtue of an upsurge in market values before the 3 year cut off.
John White
England Jackman & Spacey |
Edited by - John on 20 April 2009 22:39:20 |
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CallMeAndy
Starting Member
11 Posts |
Posted - 20 April 2009 : 22:43:07
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Thanks to John and previous guys then,
you have all been most helpfull. I guess I am filing tomorrow then. |
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Topic |
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Mortgage/Property questions
