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mitsu8
Junior Member
272 Posts |
 Posted - 28 November 2009 : 16:18:12
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| hi i was br back in july.have a secured loan and mortgage on our house .we are in negative so waiting to buy bi back.my question is in say 6 mths time i couldnt carry on with payments would any shortfall be covered by my br.i hope it doesnt come to this but you never know as my job is a bit hit and miss.if it isnt covered will seriously have to look at giving house up.thanks |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 November 2009 : 16:38:58
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There are others with far more knowledge of housing than me, but I'm sure that once you have bought the BI back from the OR it's your responsibility and cannot be included in your BR.
Hopefully someone will be soon to confirm 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/
28 IPA payments made, 8 to go - in single figures! |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 November 2009 : 16:41:59
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I think you are right Skippy. Once the BI has been sorted out, if you cannot make your mortgage payments and the house is repossesed, you are responsible for that shortfall.
The glimmer gets brighter all the time
Jan
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 28 November 2009 : 17:10:56
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as above do not buy the BI from the OR unless you are happy to accept the negative equity in the property and can afford to maintain the payments
once you have bought the BI it is your neg equity not the ORs
Dave
Don't worry or know that worrying is as effective as trying to solve an algebra equation by chewing bubble gum.(Baz Lurman)
RevivaUK helped me through it all i can't recommend them enough!! |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 28 November 2009 : 17:25:15
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Hi Mitsu8 - the information that has been provided by fellow poster's is correct i'm afraid. As you have a mortgage and a secured loan, you and your family need to think long and hard as to whether or not it is an 'affordable' solution in the long term to purchase back the beneficial interest. If you do so and, say, in 6 months time cannot afford to meet the monthly repayments you may end up with a repossession of teh property and left with the shortfall - which is basically ending up where you stared prior to the bankruptcy order - in debt!
By the way - Nice to meet you last weekend!
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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debtinfo
forum expert
2826 Posts |
Posted - 28 November 2009 : 19:03:03
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| Hi, sorry to go against the flow, and wouldnt want to doubt melanie but, When you go bankrupt the mortgage is entered as a contingent liability. When you buy the beneficial interest you do not change the liability in any way, all you do is change who any equity would go to. What makes everyone think that this would land you with the shortfall again. |
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 November 2009 : 19:16:18
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Surely if that didn't happen then you could decide a couple of years down the line that you no longer wanted the house and therefore it should be included in BR?
All the advice I've ever heard is to make sure you do want to keep the house before buying back the BI.
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/
28 IPA payments made, 8 to go - in single figures! |
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debtinfo
forum expert
2826 Posts |
Posted - 28 November 2009 : 19:24:47
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| i know thats the prevailing consensus, just never seen any info to show that |
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debtinfo
forum expert
2826 Posts |
Posted - 28 November 2009 : 19:28:22
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At any rate even if the the property was repossessed years down the line and the shortfall went into the bankruptcy, the Mortgage company would be in a better position than if it was repossessed straight away as prices "generally" go up over time and more payments would have been in the meantime.
Anyway lets see what melanie comes back with or even paul if he is around |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 November 2009 : 19:39:08
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I am sure that Melanie is right - if you buy the BI, this takes the house out of the bankruptcy and any shortfall thereafter resulting from you not being able to make the mortgage payments will be down to you and won't be captured in the BR.
The glimmer gets brighter all the time
Jan
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debtinfo
forum expert
2826 Posts |
Posted - 28 November 2009 : 19:43:50
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| By that measure if someone else but the BI for £1 such as your mother would they have taken it out of the bankruptcy and become responsible for the Mortgage |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 November 2009 : 19:45:17
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No, the mortgage is still down to you and not the person who buys the BI. They're not on the mortgage.
The glimmer gets brighter all the time
Jan
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debtinfo
forum expert
2826 Posts |
Posted - 28 November 2009 : 19:49:26
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| So at the date of the bankruptcy as a contingent liability any future shortfall falls into the bankruptcy. how can it be that if you buy the BI the liability transfers to you, but is someone else buys the BI it does not transfer to them, Can you see what i am getting at |
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mitsu8
Junior Member
272 Posts |
Posted - 28 November 2009 : 19:51:54
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hi melanie it was great to talk to you last week.i thought it was the case but what happens if we dont buy it back.if i carry on paying mortgage and loan what will happen in short term or longer term.work as i said is hit and miss and i dont want to have to go br again which is what i presume would happen.if we say we dont want to buy will they look toget us out asap thanksquote:
Originally posted by Melanie.n
Hi Mitsu8 - the information that has been provided by fellow poster's is correct i'm afraid. As you have a mortgage and a secured loan, you and your family need to think long and hard as to whether or not it is an 'affordable' solution in the long term to purchase back the beneficial interest. If you do so and, say, in 6 months time cannot afford to meet the monthly repayments you may end up with a repossession of teh property and left with the shortfall - which is basically ending up where you stared prior to the bankruptcy order - in debt!
By the way - Nice to meet you last weekend!
Melanie Nicholas
28 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 November 2009 : 20:05:12
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I'm not sure what happens if you don't want to buy it back. However, if you don't and the value of the house goes up and you end up with equity, I believe the OR can ask for it to be sold.
Hopefully Mel will come back and advise.
The glimmer gets brighter all the time
Jan
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Skippy
forum expert
United Kingdom
3290 Posts |
Posted - 28 November 2009 : 20:08:09
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As far as I'm aware there are 3 years from the date of your BR for you to either buy the BI or for the OR to effect a sale of the property.
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/
28 IPA payments made, 8 to go - in single figures! |
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mortgage /loan
