Can anyone suggest what my options are relating to my property?
As I have previously said my house is worth approx 80k. There is a mortgage of 73k and a secured loan of 22k against the property. Ideally I would like to keep the house but speaking to a few debt management companies this last few days whilst completing my SOA form, they have said that it might be better to include the property in the BR proceedings because of the negative equity I am in. This would enable me to have a fresh start and it would give me plenty of time to try and find a suitable house to rent and move in to.
My reason for keeping the house are that it is close to my daughters school and is only a few miles from work but I am mindful that trying to keep the property may slow down the process of being discharged. There is also the uncertainty of the housing market over the next few years which if property prices drop any further I may be even further into negative equity than I am at present.
Another reason for keeping the house was that I understand it is harder to obtain a mortgage once declared BR, but because I currently have one and I have never missed a payment to them I thought by keeping this going may help rebuild my credit history over time.
I can afford to continue pay the loan and mortgage on the property and with how the rates are at present when my fixed rate comes to an end I will probably be slightly better off going onto the standard variable rate instead of the high fixed rate that I am currently on.
Can anyone tell me what happens if I include the property in the proceedings and how long I would be allowed to remain there?
If your house is in negative equity then it is unlikely that the OR will be interested in it. You can then get someone to buy out the beneficial interest for £1 plus £211 costs and the house is removed from the BR.
It shouldn't make any difference to when you are discharged.
If you can keep up the secured loan and mortgage payments and are happy, then I would stay where you are.
House prices will eventually begin to rise again and you won't always be in negative equity.
Buckle your seat belt Dorothy, 'cos Kansas is going bye bye.
Property before and after BR
Posted - 16 July 2010 : 17:20:19
