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Needafriend
Junior Member
United Kingdom
344 Posts |
 Posted - 16 July 2008 : 19:41:54
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We dont have any secured lending against our property only the mortgage and an equity of about £9k, If they decide they want our bit of equity what should we do. We wont be able to remortgage next year and if we did we would not be able to afford the repayments, so would lose the house anyway.
Whilst we are BK if they repossess our house, and only get say £120k and we are left with a shortfall of say £35k will that get written off in the bankruptcy as I have listed it on the SOA but surely that only applies to the debt whilst before we go BK or during and not after discharge. I want to know how it works, as i dont want to end up being then billed for the diference in the shortfall after the house has gone.
For the shortfall to be included in the BK from a repossesion does the house have to be repossessed before Bankruptcy or can this be included from the date of BK and after discharge as it was listed on the SOA. You say unsecured lending is that additional loans only or the mortgage too. Im so worried and confused. I have missed now 2 payments on the mortgage and its included in the SOA but I am so worried that if it takes the OR or Mortgage co a year to get us out that then say we are discharged in that time that any shortfall then wont be included, and if they say we can buy the equity and we cant then it still wont be included ever and we will still end up in debt.
Please please please tell me how they work it,surely if its on the BK from the start on secured and unsecured then even if its just after the discharge then it should still included and we wont be liable. My head is spinning and I cant cope with this tonight
What is our position on this. Please advise
Thanks
JO
"Lifes too short, Grab it while you can. Make each day count and live life to the full!"
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Edited by - Needafriend on 16 July 2008 21:24:55 |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 July 2008 : 22:36:11
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Hi jo
the first thing to do is try and remain calm. I know that's easy to say but I, like many on this site, have been exactly where you are right now.
Your post deals with 2 totally seperate issues.
The first refers to your property in the event of the OR wanting equity if there is any to be had.
The second refers to repossession in the event that you default further on the mortgage.
It would be easier if I knew what your plans are.
You are 2 months arrears with the mortgage now, can you recover from that or is it likely that arrears will increase? |
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melanie_giles
Senior Member
1191 Posts |
Posted - 16 July 2008 : 22:37:51
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The Trustee is only interested in the portion of the property that you actually own - ie the equity. If there is no equity your interest can be transferred back to you for a nominal £1 plus £211 towards the costs of legal transfer, and the asset is thus removed from the bankruptcy estate.
If your house is repossessed as a result of you not paying your mortgage, and you are discharged from bankruptcy at the time of a sale, then this debt will be deemed to be post bankruptcy and you will be held liable for it.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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John
New Member
United Kingdom
73 Posts |
Posted - 16 July 2008 : 22:49:43
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Hi jo
I have just read your blog which suggests you are resigned to giving up the house.
If that's the case then don't pay the mortgage anymore. You'll need to be 3 months in arrears before the lender takes action and it would take approx 6 - 8 more weeks for them to evict.
That means you can miss 3 more mortgage payments to get your deposit etc together before eviction.
However, if this is your plan you must amke sure that the property is is listed in section 4 (secured) of the SoA AND in section 4 unsecured.
In section 4 unsecured in the column headed "amount owed" just write "shortfall" as you don't have any exact figures.
I note from your blog that you have spoken to the local housing department. Have they given any indication that if the home is repossessed and you are evicted (therefore unintentionally homeless) you may be housed through them?
Assisting where I can. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 17 July 2008 : 07:20:04
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Hi Assist
I have done the forms on line and I have tried my hardest to write "shortfall" in that section but in the amount owing I cant put anything other than numbers, where should i put the wording and also what amount should I put as I have put the full mortgage balance.
I have not seen Housing Officer yet that is tomorrow, Friday at 10.30 she will then go through the information with us.
Once i have seen her I will know more about what we should do. If we dont pay anthing toward the mortgage as from now, how long do you think it will be before we have to go, we go BK on the 4th of August.
When I spoke to the HO on the phone and made the initial appointment she seemed ok just wanted to check that we were not intentionally making ourselves homeless. But we have been in such a mess for a few years that now it has come to a head. My hubby wants the house gone he said its been the worse thing we did and started all this and we wont get remortgaged and so we will lose it anyhow.
Should i just save the money then that we were paying and use as a deposit, how long will they give us before we have to go.
What if we find a house to rent prior to BK, how then do we just leave the house. What route should we take, as there is equity in the house and we dont then want to hand the keys back, as the OR wont take kindly to that, if we find a rental, then get into that, then go BK, then dont pay mortgage, will that all be included then.
Also if we are behind on mortgage payments already how are we going to get rental, we must tell them we are going to BK right, or not say anything.
Hi i have spoken ti some lettings places, how do i go about getting rental whilst technically we are still buying. This is so complicated. Should we just stay here and find the mortgage payments and arrears, then if we struggle after the BK has been discharged and cannot afford the higher mortgage in a year or so sell it. Then go into rented. We can find the money to pay back arears once agreed with mortgage co over a few months. I want to stay here. Is this our best option as no one will take us while we have the mortgage over our head, when the remortgage is due we can stay on int only and if then we find we cannot afford it then take it from there.
If the OR wants the equity then we can sell for them, then we will be asked to go and be homeless. Is that the best way forward.
Please advise
Jo
"Lifes too short, Grab it while you can, Make each day count and live life to the full. Dont Worry- Be Happy!"
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Edited by - Needafriend on 17 July 2008 09:15:01 |
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John
New Member
United Kingdom
73 Posts |
Posted - 17 July 2008 : 14:37:52
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[quote]Originally posted by josilverplayboybunnie
Hi Assist
I have done the forms on line and I have tried my hardest to write "shortfall" in that section but in the amount owing I cant put anything other than numbers, where should i put the wording and also what amount should I put as I have put the full mortgage balance.
I have not seen Housing Officer yet that is tomorrow, Friday at 10.30 she will then go through the information with us.
Once i have seen her I will know more about what we should do. If we dont pay anthing toward the mortgage as from now, how long do you think it will be before we have to go, we go BK on the 4th of August.
When I spoke to the HO on the phone and made the initial appointment she seemed ok just wanted to check that we were not intentionally making ourselves homeless. But we have been in such a mess for a few years that now it has come to a head. My hubby wants the house gone he said its been the worse thing we did and started all this and we wont get remortgaged and so we will lose it anyhow.
Should i just save the money then that we were paying and use as a deposit, how long will they give us before we have to go.
What if we find a house to rent prior to BK, how then do we just leave the house. What route should we take, as there is equity in the house and we dont then want to hand the keys back, as the OR wont take kindly to that, if we find a rental, then get into that, then go BK, then dont pay mortgage, will that all be included then.
Also if we are behind on mortgage payments already how are we going to get rental, we must tell them we are going to BK right, or not say anything.
Hi i have spoken ti some lettings places, how do i go about getting rental whilst technically we are still buying. This is so complicated. Should we just stay here and find the mortgage payments and arrears, then if we struggle after the BK has been discharged and cannot afford the higher mortgage in a year or so sell it. Then go into rented. We can find the money to pay back arears once agreed with mortgage co over a few months. I want to stay here. Is this our best option as no one will take us while we have the mortgage over our head, when the remortgage is due we can stay on int only and if then we find we cannot afford it then take it from there.
If the OR wants the equity then we can sell for them, then we will be asked to go and be homeless. Is that the best way forward.
Please advise
Jo
"Lifes too short, Grab it while you can, Make each day count and live life to the full. Dont Worry- Be Happy!"
[Hi Jo
I'll try to take the many points one at at time.
On the SoA, put 0 in the amount owing then in the column headed reason for debt write unknown shortfall.
If you stop paying your mortgage, exactly how long you have before you are forced to leave, if repossessed,is difficult to say exactly but as per my last post I would say at least 6 to 8 weeks after you have missed the 3rd mortgage payment.
If you find a rental, and have the funds together, before BR then yes, just leave the current property. Whether or not it is best to let it go or rent is something only you and your husband can decide together. If you do rent it's best to start before BR if you can as obtaining a rental may be easier pre BR. However, it's still possible after. Let's hope if you decide to give up the current property (through repossession) your HO will be able to help.
Also remember, if you do decide to hang in there with the present property and someway down the line it doesn't work out then the shortfall, if you are later repossessed, is not captured in your BR and you're liable again for any shortfall.
It seems to me that both you and your husband need to try and decide what it is you feel is best in respect of the current property.
A difficult decision but, obviously, one that only you can make]
Assisting where I can. |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 17 July 2008 : 15:18:46
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Hi assist
I have made enquiries about renting. Do we lie about having the mortgage to the rental places. As i know they wont take us if we have a mortgage and then go into rental. But also our credit file is shot and we have the arrears to think about too. I would rather leave now and that be the end but I cant find a way round getting a place prior to going BK as the one i spoke to obviously wont take you if you have a mortgage. So how do i get round this.
Whats the best way to get round this. Any advice
Thanks
JO
"Lifes too short, Grab it while you can, Make each day count and live life to the full. Dont Worry- Be Happy!"
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Edited by - Needafriend on 17 July 2008 15:20:41 |
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John
New Member
United Kingdom
73 Posts |
Posted - 17 July 2008 : 22:57:55
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Hi jo
I'm not sure what to suggest. I have not come across a situation where the letting agent even asks the question as to whether or not you have a mortgage, let alone refuses your application purely on that basis.
Also a little confused, I thought I had read in another post that you had decided to fight to keep the current property. |
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melanie_giles
Senior Member
1191 Posts |
Posted - 18 July 2008 : 00:18:50
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If you look around your local market at the number of properties with "To Let" signs up, it is clear that their is more supply than demand. Some landlords may well be choosy about taking on new tenants with a history of financial difficulties, and others will not.
It is sometimes easier to get a tenancy from a private landlord than one which uses a letting agency. I am unclear why you feel that you will not be eligible for a tenancy if you have an existing mortgage. This should not affect your application, but you do have to answer honestly if asked. Many people are losing their homes due to possession proceedings at the moment - and therefore the only place they can go is either into private rented or local authority assisted housing - so there is nothing strange about your situation.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 18 July 2008 : 07:34:56
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Hi Melanie
Thanks for that advice. We have the appt with the HO today. So will see how we get on. If we did decide to let the house go to repossesion now which would be just after we apply for our BK would the debt of the shortfall be included in the BK amounts.
I am also going to go to some letting agents today and see what state of play is for us.
My main concern is the debt that we could end up with if the house goes to repossession and then does not get included in the BK.
If we fight to keep the house, then after BK discharge we manage for a bit then we find we are unable to meet the payments, then it gets repossessed and end up with a debt then what do we do.
What would you say would be the best solution out of this, go to letting agents, tell them house is going to repossessed and then just rent as we wont be paying 2 payments just rent not mortgage.
Please advise
Jo
"Lifes too short, Grab it while you can, Make each day count and live life to the full. Dont Worry- Be Happy!"
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melanie_giles
Senior Member
1191 Posts |
Posted - 18 July 2008 : 08:41:03
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Yes the shortfall would be included as an unsecured creditor. I personally would be looking for a rental property now, and then dealings with the bankrutpcy and handing the house back once you have found something.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Help Please Mortgages, Bankruptcy and reposessions
