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Help - complicated property issue after bankruptcy
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LJ82
Posts: 1 Newbie
Hi,
I'm hoping someone might be able to help with this cos I can't get my head around it!
Basically, I owned a flat and after several years of living in it moved in with my boyfriend (now husband). The flat had decreased in value so I obtained a consent to let from the mortgage provider (Northern Rock) rather than selling it.
I went bankrupt in July 2009 due to a combination of a business failure and the tenants in the flat not paying rent for 6 months (then leaving in the middle of the night when court action was being taken).
Because of this I had arrears on the mortgage, and since the property had no value the OR weren't interested.
After my bankruptcy Northern Rock instructed an LPA who have managed the property since. They've done some work to the flat, adding the costs onto my mortgage.
However, they haven't been able to rent the flat out, meaning further arrears are being accumulated and my credit record is looking a state (even more so than after the bankruptcy!) I can't afford to pay the mortgage since I'm contributing to our current household costs and paying an IPA. I used to pay a nominal amount to Northern Rock but the OR said to stop paying, since it made no real difference to the arrears or my credit record.
Is there anything I can do about this? My hands seem to be tied.
Any advice will be gratefully received.
I'm hoping someone might be able to help with this cos I can't get my head around it!
Basically, I owned a flat and after several years of living in it moved in with my boyfriend (now husband). The flat had decreased in value so I obtained a consent to let from the mortgage provider (Northern Rock) rather than selling it.
I went bankrupt in July 2009 due to a combination of a business failure and the tenants in the flat not paying rent for 6 months (then leaving in the middle of the night when court action was being taken).
Because of this I had arrears on the mortgage, and since the property had no value the OR weren't interested.
After my bankruptcy Northern Rock instructed an LPA who have managed the property since. They've done some work to the flat, adding the costs onto my mortgage.
However, they haven't been able to rent the flat out, meaning further arrears are being accumulated and my credit record is looking a state (even more so than after the bankruptcy!) I can't afford to pay the mortgage since I'm contributing to our current household costs and paying an IPA. I used to pay a nominal amount to Northern Rock but the OR said to stop paying, since it made no real difference to the arrears or my credit record.
Is there anything I can do about this? My hands seem to be tied.
Any advice will be gratefully received.
0
Comments
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not really, whilst the OR may not have seemed interested they do have a legal interest in the property, which because it was a rented out property stays with the OR indefinitly, BUT if in negative equity the OR will just let the Mortgagee and LPA receiver get on with it. BUT at the end of the day as long as you dont sign anything you will never be liable for the shortfall when the property is sold. The main thing to watch out for though is council tax liability which can be tricky if the LPA receiver withdrawsHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
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