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    • brightonbelle
    • By brightonbelle 9th Aug 17, 8:53 AM
    • 75Posts
    • 14Thanks
    brightonbelle
    Just one thing...
    • #1
    • 9th Aug 17, 8:53 AM
    Just one thing... 9th Aug 17 at 8:53 AM
    I posted a month or so ago but my situation, husband declared bankrupt 2015 now letter from trustee about selling out home or me buying the BI. I've had advice from as many places as I can find and it seems that even though this is financial abuse - I wasn't told the bankruptcy until days before the petition from HRMC and was lied throughout - there isn't anything I can do other than try to raise £83k!!

    One question I have though is if this equity doesn't actually cover his debts what's the point in making two children homeless, it makes no sense. The rent here is one thousand pounds a month more than my mortgage, my equity will be gone in a few years, and I will have to rely on benefits - we are now separated - will my ex have to pay towards the outstanding debts, this will seriously effect his ability to pay maintenance is that considered?
Page 5
    • silvercar
    • By silvercar 4th Oct 17, 10:37 PM
    • 36,062 Posts
    • 151,660 Thanks
    silvercar
    sadly we are now separated but too late for this, just seems to make a mockery of the whole process if the debts don't actually get paid and someone makes a small fortune for doing sod all...yet the debtor walks away debt free, surely the trustee should have a limit too.. the only joint asset we have is the house, never had a joint bank account or credit card - nothing.

    Its a life lesson I've learnt never trust anyone ever again, be independent financially, what i have from now on will be for me and the children x
    Originally posted by brightonbelle
    If the trustee had a limit, more of your OH's money share of the equity would go to his creditors. It wouldn't make any difference to your situation.

    You really should be focusing on whether you can raise a mortgage big enough to buy your OH's share of the equity off the OR and save your home.
    • brightonbelle
    • By brightonbelle 5th Oct 17, 10:50 AM
    • 75 Posts
    • 14 Thanks
    brightonbelle
    Yep, you are right @silvercar I have to raise the mortgage otherwise the only other option is to agree to a sale and have to hope it raises a decent amount of money, not enough to buy anywhere else though sadly so will have to move the kids into a rented house, never being on the property ladder again wasting all of my money on paying someone elses mortgage. Let's just hope there is a huge crash in the property market after hey :-)
    • FlowerGirl27
    • By FlowerGirl27 5th Oct 17, 12:03 PM
    • 80 Posts
    • 79 Thanks
    FlowerGirl27
    Maybe your equity from the house will be enough for a deposit for a flat out of the area
    • silvercar
    • By silvercar 5th Oct 17, 12:57 PM
    • 36,062 Posts
    • 151,660 Thanks
    silvercar
    Yep, you are right @silvercar I have to raise the mortgage otherwise the only other option is to agree to a sale and have to hope it raises a decent amount of money, not enough to buy anywhere else though sadly so will have to move the kids into a rented house, never being on the property ladder again wasting all of my money on paying someone elses mortgage. Let's just hope there is a huge crash in the property market after hey :-)
    Originally posted by brightonbelle
    Any chance that any of his family or yours could help raise the money? Trying to think out of the box here.

    Also wonder if a divorce solicitor may help. A separation agreement that he only is entitled to X% of the equity may have an influence on an OR.

    As I think I said before, I do have a concern that every £ you pay to reduce the arrears actually increases the equity in the property, so at least some of that £ goes to the OR. Finding out the score on whether you can raise a mortgage will let you know whether it is better you save your money for yourself and your children or use it on the current mortgage.

    I know you said that the lender is keen for you to reduce the arrears before they can make a decision on whether they will allow you to increase the mortgage, but they would say that wouldn't they? The function of the arrears department is to get pay back on arrears.
    • brightonbelle
    • By brightonbelle 6th Oct 17, 5:42 PM
    • 75 Posts
    • 14 Thanks
    brightonbelle
    Had valuation and letter from the trustees solicitors - they want £91K as his share of the equity....surely this can't be right as the sales costs will be deducted from his share not mine? they can't force the innocent party to pay to sell can they? Can they force me to sell? the stress is unbearable to be honest.

    I'm going to have to negotiate with them I guess, especially as they will be making children homeless I can't buy anywhere else, fingers crossed I can get the amount reduced and can borrow the money to buy him out....what a mess.
    • silvercar
    • By silvercar 6th Oct 17, 7:51 PM
    • 36,062 Posts
    • 151,660 Thanks
    silvercar
    Had valuation and letter from the trustees solicitors - they want £91K as his share of the equity...
    What do you think the equity is?

    And how does that compare to the amount you could raise?

    If you want to negotiate then you need to know that it is worth the effort. If you were hoping for 40k, then clearly it is going to be a struggle to convince the OR not to force a sale. On the other hand, if 80k is possible then it is worth the struggle.

    You could also pursue the idea of the OR putting a charge on the property for a portion of his share, at least then you have some breathing space until the kids are adult.

    I know I have said this before, but every pound you pay off the mortgage (arrears payments or a monthly repayment) is money you are sharing with the OR. I would find out the chances of the lender giving you the increased mortgage as speedily as you can. At least then if the answer is no you can stop paying the mortgage and save up for a move.
    • brightonbelle
    • By brightonbelle 7th Oct 17, 7:54 AM
    • 75 Posts
    • 14 Thanks
    brightonbelle
    Surely morally that's not the right thing to do - if I can afford to pay I should, got my credit score to think of and I have to pay my way otherwise I'm no better than him. I'm not paying any selling costs, or legal fees as it's not my decision to sell, so I think that only reasonable to deduct from the beneficial interest.

    I've cleared the arrears now so will speak to the mortgage company early next week...my oh thinks we should stay together, he thinks as it would give us a better chance of keeping the home l - with his income, but really how could anyone stay with someone who has done this to their family, I might need him to stay on the mortgage but sign the house to me - can this be done?
    • silvercar
    • By silvercar 7th Oct 17, 8:47 AM
    • 36,062 Posts
    • 151,660 Thanks
    silvercar
    You make your own moral judgments and good for you in holding your values high. It's difficult to hold onto your moral compass when swimming with the crocodiles. The only comment I would make is that the lender's arrear department may not have had the same morals when persuading you to clear arrears without promising you the mortgage in return.

    If you need to move and get a new mortgage elsewhere, then the bigger deposit you have the better.

    His income may help the lender agree to a larger mortgage, but his recent bankruptcy status will mean his credit rating is poor, so a joint mortgage elsewhere is less likely.

    If he stayed on the mortgage and you bought out the Beneficial Interest from the OR, you effectively do own all the equity. Him signing the house to you wouldn't be possible while on the mortgage unless it was as a result of a court order. If following this route, you need to sort the mortgage out first or his income won't be considered.

    So the order would be sort out a joint mortgage high enough to buy his equity off the OR, then have a separate legal document drawn up transferring the property to you. I'm not sure if you can get his name removed from the deeds while still having a joint mortgage, but it may not be necessary.

    Of course, him being on your mortgage will impact on him getting his own mortgage in a few years time. So that's another moral consideration.

    One more thing, if you have any joint finances, your credit rating will be affected by his bankruptcy. So sticking with a joint mortgage will effect your rating.

    I don't know whether his actions make a reconciliation possible, he would need to regain the trust you placed in him. That will take time and work.

    Good luck!
    • brightonbelle
    • By brightonbelle 9th Oct 17, 10:19 AM
    • 75 Posts
    • 14 Thanks
    brightonbelle
    thanks for that helpful advice I find it all a bit overwhelming to be honest, such a lot of things to consider and really important life choices that impact me and the children. I don't think reconciliation is possible, there is a lot more to it than just bankruptcy - years of abusive behavior and it's that I can not forgive, the money issue is really the icing on the cake.
    • brightonbelle
    • By brightonbelle 10th Oct 17, 10:35 AM
    • 75 Posts
    • 14 Thanks
    brightonbelle
    so got to start negotiating as mortgage company need to know exactly how much extra I will need to borrow - still less than it would cost to rent as apparently I won't get any benefits or help with housing costs because I'd have savings
    • FlowerGirl27
    • By FlowerGirl27 10th Oct 17, 12:06 PM
    • 80 Posts
    • 79 Thanks
    FlowerGirl27
    Good luck with getting a swift resolution.

    If the Trustee has written to request £91,000, they may accept around the £85,000 mark for a quick result I guess.
    • brightonbelle
    • By brightonbelle 10th Oct 17, 1:43 PM
    • 75 Posts
    • 14 Thanks
    brightonbelle
    I hope so @flowergirl it's still a hell of a lot although even with a mortgage of that amount it's cheaper than renting as that's £1600 a month at least it's madness!
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