I visited Social Services today to put my name down for housing. They mentioned that I wouldn't be considered for re-housing until I had a letter of eviction from the mortgage company. She also gave me information about help with paying the deposit on private rental too.
My mortgage payments are up-to-date but my secured loan payment is one month behind. I have stopped paying the secured loan payment although they say they will ring me everyday because the bankruptcy does not cover secured loans.
Should I stop paying the mortgage too and wait for a repossession letter so that I can be considered for local housing or continue to pay the mortgage until I can find suitable private accommodation? If I pay the mortgage am I then obliged to pay the secured loan too? I cannot afford to pay the secured loan of £360 per month and the mortgage of £330 (hence bankruptcy.
Hi bellejane.....i am going to leave my property to go into a private rent. just saw the house yesterday with a mobile no in the window rang it went to view it today. Explained the position to him regarding intending to go bankrupt and he was fine about it all. he just checked my payslip and bank sta showing my wage going in. no checks or refs...went to see estate agents prior and was told i would have no chance of renting thro them..so dont give up there are houses around and people that understand
paying the mortgage and not the secured loan is pointless as either lender can file for repossession after 3 months of non payment.
The £690 per month total is not affordable for you but how much would a private rental cost in your area?
If that's unaffordable too then your LA has already advised you that you need to receive an eviction notice before they will house you.
That means that the repossession hearing would have to be held and you will then be given a further 28 days to settle the arrears. When you don't an eviction hearing will be set of which you will be notified. Once the eviction is granted you need to take evidence of that to your LA.
If you feel that is your best option from a financial viewpoint you should stop paying both your mortgage and the secured loan now.
I have assumed there is no equity in the property.
Hi bellejane yes you certainly can. Most people coming out of there own property and going into rental as a result of BR use this strategy to do exactly that and the OR will be fine with it.
If it wasn't for this site and people like yourself, I think I would have been lost in a daze and crippled with fear. At least I can be proactive now and move a step at a time in the right direction. I don't feel so panicked or scared. I feel more able to cope with all the coming changes ahead. I will play the waiting game for the eviction notice and put the money aside. I will wait to be rehoused by the Local Housing as I definitely can't afford private housing (spent most of night budgeting) but at least I know I'll get something I can afford and be in the black again.
Thanks to all for helping a single mum and 2yr old through scary bankruptcy onto a positive life-changes. When you're crippled with fear, its too easy to wait around and let things happen around you. With this site, it is nice to feel you can have a little control of your life and future at last.
Should I continue to pay mortgage post BR?
Posted - 22 August 2008 : 22:43:34
