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mitsu8
Junior Member
272 Posts |
 Posted - 28 November 2009 : 20:10:01
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hi jan im just worried ,feel like easy way out is to go rent somewhere and get rid of the mortgage and especially secured loanquote:
Originally posted by kallis3
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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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 28 November 2009 : 20:15:32
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Hi, and hope you are both well. I can understand what you are saying. Hopefully Mel or Paul can come on and lay your fears to rest. Otherwise I'd give Paul a ring on Monday as I'm pretty sure I remember you saying that he hade helped you with your BR. He'll be able to tell you for definite where you stand.
The glimmer gets brighter all the time
Jan
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RHB
Senior Member
1159 Posts |
Posted - 29 November 2009 : 09:10:22
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| You need to think that you went BR to end your worries about money. If keeping your house keeps you worrying about money is it worth it? Remember,home is where the heart is. |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 30 November 2009 : 10:53:16
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Hi there
The purchase of the BI by a third party does not affect in any way your liability for the mortgage, all the third party is doing is paying to remove the BI ie OR's name, they do not become liabile for the mortgage, nor is thier name used to replace the OR's all the third party does is fund the costs on behalf of the bankrupt
The mortgage and any secured borrowings, remain secured debts in the bankruptcy. The OR gives the opportunity to purchase back the BI if there is no equity in the property but the individual has to give thought as to whether or not they are going to be in a position from an affordability point of view to maintain the mortgage and or any borrowings on the property.
If someone wishes to buy back the BI it is best to sort this as soon as possible rather than wait, as the market may improve, placing the property in an equity position which the OR would then seek to realise any potential equity.
If someone purchases the BI this is done after the OR has established there is not equity available and in effect place the property outside the bankruptcy process and creditors reach. However once having purchased the BI if further down the line someone is then unable to maintain the contractual repayments on the borrowings secured against the property and the result is that the property is repossessed the individual would be liable for any shortfall.
Hope this answers your queries, Melanie.n
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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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 30 November 2009 : 12:07:51
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thats what i thought, the mortgage shortfall is only included in the BR if it becomes unsecured , ie. the house is sold and there is not enough money to pay all debts secured upon it.
once the BI is bought that removes that porential shortfall from your BR and you become liable again.
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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debtinfo
forum expert
2826 Posts |
Posted - 30 November 2009 : 14:39:02
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Hi Melanie
Why is it that if a third party buys the BI then they dnt become liable but if the bankrupt buys the BI then they do in both cases the same thing is happening, Both are buying the BI only ie the right for any profits to be paid to them. Neither are changing the contract terms under which the original liability was incurred prior to the bankruptcy.
By that measure if there is significant negative equity and the bankrupt just waits three years that the BI reverts to them without any conveyance again the same thing happening. Would you think that they were liable for the shortfall in that case as the BI has reverted to them but they have taken no action themselves |
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chester2005
Average Member
United Kingdom
786 Posts |
Posted - 30 November 2009 : 15:52:36
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when you or anyone buys the BI all they are doing is buying the equity but if that is negative the liability does not transfer away from the original borrower that signed the loan agreement that person is still liable for shortfall and any profit goes to whoever holds the BI . The OR has 12 months to decide what to do with the equity and 3 years to implement that decision
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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debtinfo
forum expert
2826 Posts |
Posted - 30 November 2009 : 16:17:27
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| hi dave that is precisly what i am saying the liability does not change, and that liability is not with the bankrupt it is a contingent liability in the bankrupty and always will be forever more unless something else is signed to change that liability |
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mitsu8
Junior Member
272 Posts |
Posted - 30 November 2009 : 16:29:09
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hi im more confused than ever.we have made decision at moment not to buy bi back .i spoke to paul johns last night and he said if i buy it then cant pay mortgage etc then i will be liable to any shortfall.at the moment not heard from or so not a problem yet .im just thinking to not pay mortgage etc to start getting deposit and rental monies together because i dont want to go br again within a few mths of getting discharged sayquote:
Originally posted by debtinfo
hi dave that is precisly what i am saying the liability does not change, and that liability is not with the bankrupt it is a contingent liability in the bankrupty and always will be forever more unless something else is signed to change that liability
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 30 November 2009 : 17:16:51
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It is NOT a continngent liability but a Secured Creditor and whilst the mortgage is paid, will remain a secured creditor. It the property is handed back or repossessed the shortfall on the mortgage and/or any secured loan becomes an Unsecured debt. I think you are getting confused (and also confusing others by stating contingent creditors - the mortgage is not a contingent debt)
and to clear the matter (finally) if as third party purchases the beneficial interest they are only doing it on behalf of the bankrupt at no time does a third party ever become liable for the mortgaqge NOR does the interest in the property go in their name just cost they paid the £211 plus £1 fee.
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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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 30 November 2009 : 17:18:10
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Mitsu8
If you are still unsure, please by all means contact me duirect and i will go through everything with you over the phone (see info on 'experts' button Melanie.n
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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mitsu8
Junior Member
272 Posts |
Posted - 30 November 2009 : 17:55:44
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i will give you a call tomorrow if thats okquote:
Originally posted by Melanie.n
Mitsu8
If you are still unsure, please by all means contact me duirect and i will go through everything with you over the phone (see info on 'experts' button Melanie.n
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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mitsu8
Junior Member
272 Posts |
Posted - 02 December 2009 : 16:51:13
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hi we have decided to give our house up.first missed payment on mortgage yesterday so will enjoy christmas and then look for a rental house.not the ideal end but need to have a life than keep paying big mortgage and secured loanquote:
Originally posted by mitsu8
i will give you a call tomorrow if thats okquote:
Originally posted by Melanie.n
Mitsu8
If you are still unsure, please by all means contact me duirect and i will go through everything with you over the phone (see info on 'experts' button Melanie.n
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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Housing
Senior Member
United Kingdom
1399 Posts |
Posted - 02 December 2009 : 18:02:45
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Hi mitsu8,
Just read your posting about giving up on your house. I am so sorry to learn of that.
It is not my business and I have not read all the threads - I understand the stresses - but your home may be able to be saved.
I have seen far too many lost when, with some more consideration, and innovative thinking, it could be saved.
Sorry, I am not sticking my nose in - just thinking of you and your situation - happy to assist with cyber advice - not sure if you did speak to Melanie in the end - she knows what she is doing...
Good luck, Richard
"There are no problems - only solutions..." |
Edited by - Housing on 02 December 2009 18:03:39 |
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mitsu8
Junior Member
272 Posts |
Posted - 02 December 2009 : 19:06:38
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hi yes have spoke to melanie.unfortunately business debts transferred to me and with loss of income we need to start again,not what i expected at 42.the thing is leaving the house will save us about 1200-1500 a month with everything going into my br.also we have a big mortgage so rental will be a lot cheaper]Originally posted by Housing
Hi mitsu8,
Just read your posting about giving up on your house. I am so sorry to learn of that.
It is not my business and I have not read all the threads - I understand the stresses - but your home may be able to be saved.
I have seen far too many lost when, with some more consideration, and innovative thinking, it could be saved.
Sorry, I am not sticking my nose in - just thinking of you and your situation - happy to assist with cyber advice - not sure if you did speak to Melanie in the end - she knows what she is doing...
Good luck, Richard
"There are no problems - only solutions..."
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mortgage /loan
