Hi Once I am discharged am I liable again for the negative equity if I sell the house in the future even though it was on my SOA? My BR is due to finish on 26th Feb and I am concerned that I will be left with this neg equity if house prices do not rise over the next few years.The neg equity is about £15,000 at the moment.
G x
There is light at the end of the tunnel, I can actually see it !!!!
It all depends on whether or not you have purchased the beneficial interest. If you have, then the property is back in your hands and any potential shortfall/negative equity is your responsibility. If you have not purchased the beneficial interest and lost the property further down the line any shortfall would come into the bankruptcy.
Melanie Nicholas 29 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
Does this apply even after the three years when the trustee may give me the ownership of the property back if it is still in neg equity?
In reality it seems that I am best not to buy the BI as I am worried that mortgage prices may rise again and I may not be able to afford the payments on my own. My rate goes back to a variable rate in Feb so does goes down initially but I am concerns for the future.
Gx
There is light at the end of the tunnel, I can actually see it !!!!
Negative Equity
Posted - 05 January 2010 : 09:30:46
