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skod
Junior Member
173 Posts |
 Posted - 27 April 2008 : 22:43:48
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Hi there
I will appreciate some help.
I had a job for 10 years and bought a house. Now I lost my job and am doing temporary jobs. However I found a job in USA that is a regular job and has some prospects. Unfortunately the salary is less than here and when I convert dollars to pounds I won't able to pay the mortgage.
Besides all my family are moving to US in around 6 weeks. I won't be able to pay for a rented house and living there as well as mortgage here. I have been trying to sell the house for the last 6 months. Unfortunately nothing so far.
I am now wondering about IVA or bancruptcy.
1] Can I apply for a voluntary repossession and then ask the mortgage lender for an IVA? Will IVA apply to single creditors?
I have no other debts.
2] Can I do this from abroad? i:e; USA.
3] I have a small house in bulgaria. Will that be included [eventhough it was bought for around £5000] in the IVA or bancruptcy proceedings?
I don't have any luxury or expensive items.
4] If the creditor agrees to IVA can I pay them with out involving my employer in USA?
Considering that my salary will be equivalent of £1300 per month and will just be enough to survive in US, should I expect the lender to accept an IVA of $400 that is around £200 per month which will be my only disposable income if you can call that :-( .
I will greatly appreciate if you can advise me whether IVA is possible at all and if it is whether bancruptcy or IVA is more advisable.
Many thanks
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melanie_giles
Senior Member
1191 Posts |
Posted - 27 April 2008 : 22:52:50
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Hi Skod and welcome to the forum
You can voluntary surrender your property to the mortgage company who will then get an order for sale and account to you for the balance of any sale proceeds - or charge you for the shortfall.
If you then subsequently go bankrupt, your remaining assets will vest in the Trustee and this will include the Bulgarian property.
If you are intent that the house must go, I would personally wait until the shortfall (if any) is known before deciding whether to declare yourself bankrupt. This can be done from abroad, and other experts on this forum can help you with that if necessary.
Hope you enjoy the US!
Do you only have one creditor? If so, and IVA will not work for you as you need to have at least three lines of credit in order to propose one.
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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Reviva UK
Advanced Member
United Kingdom
2452 Posts |
Posted - 27 April 2008 : 22:57:00
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Hi there and welcome to the forum.
you obviously have a lot going on here so hopefully we can help you through your concerns.
You can't apply for an IVA if you only have 1 debt and cannot apply if the debt has not materialised ( i.e. in the case of negative equity)
Also to have an IVA one needs to have disposable income to offer towards the debts for a period of 5 years.
What are you trying to sell your house for and what is the mortgage outstanding?
Perhaaps if might be worth selling at a rock bottom price and even if there is a modest shortfall it may be possible to enter into an agreement with the mortgage lended to repay over time.
Pls post details about the house so we an advise
thanks
Paul Johns
Assisted Bankruptcy Specialists
Reviva UK
www.revivauk.com |
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skod
Junior Member
173 Posts |
Posted - 28 April 2008 : 07:03:53
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Hi melanie and reviva
Thanks for the reply. Yes I will only have one debt, that is going to be the shortfall in mortgage. I know I am probably jumping the gun but we have been trying to sell for over 6 months and now we really have to go.
We bought the house for 222000. [ I know, stupid thing to do :-( ]
When we tried to sell it the best offer we had was 160000. So even if the mortgage company can sell it better and gets may be 170000 still it is going to be a big gaping hole of 50000 which I can't afford on my american salary.
With all the disappointment I will handover the house in bulgaria to the bank if they want it.
I suppose as you suggested I need to wait till the house is sold before deciding.
However the savings I have will cover the mortgage for around 2-3 months. What happens if the house does not sell in this period after I surrender the keys?
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m and v
Average Member
United Kingdom
760 Posts |
Posted - 28 April 2008 : 09:41:40
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| Is it possible to rent it out whilst you are out of the country - not even sure this is a sensible suggestion but could rental income cover the mortgage? Ignore this if it's a daft idea!!!! |
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Helpful Advice
Average Member
United Kingdom
646 Posts |
Posted - 28 April 2008 : 14:32:50
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Hi V,
I don't think that’s a daft idea, it could keep the mortgage paid whilst your out of the country Skod and in turn build some equity over a period of time as an investment depending of course on the market, however it could well be the life line you need to avoid insolvency proceedings and repossession.
I think its well worth a look into.
The worst case scenario is you try it and it doesn’t work out you will be in no worse position than you are now.
Kind Regards,
Brett England
Bankruptcy Specialist
England,Jackman & Spacey
WebSite www.ejands.co.uk
View my personal story & blogs at:
http://brettengland.blogs.bankruptcyhelp.org.uk/ |
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skod
Junior Member
173 Posts |
Posted - 28 April 2008 : 17:58:00
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Hi folks
Thanks for the replies. We have put the house for rent as well but so far no interest in this particular area. We had it 'for rent' for nearly 3 months. One viewer. We had several viewers for buying but only one offer that offered 170k which meant we will be £60000 in red including early repayment penalty, estate agent fees and solicitor fees etc.
Also my fixed rate mortgage will come to an end in December and the mortgage is going to be std. variable which is pretty high at the moment. So my rental income may cover just over half from december onwards and I can't see how I can cover the shortfall, assuming we get someone to rent it to and they rent it for the asking amount.
I am thinking of leaving the house on the market for rental and sale for a couple of months after we move out of the country and if nothing materialises by then I am toying with asking the lender to repossess [voluntary repossession].
I read that even after VR lender expects you to pay the mortgage and other maintenance expenses like council tax, insurance etc until the house sells. It is true?
Also when the savings run dry after VR, and the house is in the market through the lender, what are my options? I mean to ask in my disjointed way what are my options when lender is trying to sell the house and I can't pay mortgage anymore.
I hope what I am saying makes sense.
Thanks again |
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skod
Junior Member
173 Posts |
Posted - 14 May 2008 : 07:46:03
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Hi friends
any response?
Thanks |
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melanie_giles
Senior Member
1191 Posts |
Posted - 14 May 2008 : 08:01:49
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If you cannot pay the mortgage your options are actually limited - in that once three payments become outstanding the lender has the right to seek possession of the property and then will sell it independently. You will suffer any mortgage shortfall and be responsible for repayment of this. Once you have lost possession of the property there is no longer a need to cover the running costs, which become the responsibility of the owners - ie the mortgage company.
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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whether bancruptcy or IVA is more advisable?
