I have a mortgaged property but have not paid the mortgage in four months and do not intend to pay it again. The mortgage company is starting to talk about repossesion. I am intending to go bankrupt at some point but how soon I'm not sure. I have found a rental property and want to move into it asap.
What is the best thing to do with my mortgaged property? let it be repossesed? hand it back ?
Would what I do with it and jumping into a rented property make any difference to my bankrupcy or how the OR treated my case?
It's really up to you whether you give the property back or let it be repossessed. If you decide to give it back just make sure you don't sign anything that says you are liable for the shortfall. If you decide to have it repossessed then the mortgage company will continue to hassle you as it costs them a lot of money to go to court for the repossession.
If you move into the rented property before you declare BR then this address will appear in the London Gazette and be associated with your BR, which is why some people wait until a couple of days after declaring BR to move into rented accommodation. Also there is a slight chance that the OR will contact the landlord to check that the rental payments are up to date if you move prior to BR however if this is only 1 or 2 months then the OR may not bother.
What To Do With My House ?
Posted - 21 September 2009 : 17:36:48
