House repossession - can anyone clarify some things pls?

MrsST

We had our telephone interview with CCCS on Monday so are now racing forward with our plans

On their advice, I have now spoken to both Northern Rock and First Plus to let them know what we are doing. NR have said that they are going to send us some forms to fill in to state that we are voluntarily surrendering the house and to give them a date at which time the property will be vacant.

Both companies said that any shortfall from the sale of the house will not be covered under the BR, although I have spoken to the Insolvency helpline who said it would. Bit confused about that.

The big thing I want to ask though is, should we hold off signing these forms for NR until after we have gone BR? Should we be signing anything at all?

Thanks

ETA: We are going to be out of the house within 5 weeks and plan to go BR in the first week of Sept.

peachyprice

Hi Mrs ST,

Firstly the shortfall certainly will be included in BR, secondly the forms they send you to sign will probably be to say you won't include the shortfall in BR and will be liable for it yourself, needless to say, DON'T SIGN anything that suggest that!!!!!

If there are statements in the form you do agree to, you can cross out the bits you disagree with before signing.

HTH

Richard_S

Hi MrsST,

As Peachy has said don't sign anything that Northern Rock or First Plus send you. Some members on here have crossed out the relevant parts and sent the letter back, others have written their own letters, but by far your safest option is to do nothing and let them reposses the house.

And it doesn't matter whether you declare bankruptcy before or after the house is repossessed and sold, you won't be liable for any shortfall.

Regards

Richard

fermi

Peachy and Richard are dead right, and their advice is spot on.

The people at Northern Rock and First Plus are either ignorant of the legal position, or they are being deliberately deceptive.

This is a link to the Insolvency Service FAQ:

Link: If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?

You can see that any shortfall will be included in the bankruptcy.

The only problem can occur is if you sign any forms with the sort of wording that states you are still liable.

Have you read Scarlett.1974's diary? They have been through the same thing, with the same issues.

MrsST

Thank you all.

I did have a read of Scarlett's diary when I first came on here but didn't think to check there for this

The person that I spoke to at NR did quickly stop talking to me about debts not being covered after I told her that I'd spoken to CCCS, National Debtline AND the Insolvency helpline Sounds definitely like she was trying to set me on the wrong path.

Looks like our best course of action will be to ignore all the forms that come through, then just ring them after we have been to court to say that we are BR.

I'm so glad I found this site!!

MammaCas

Hiya Mrs

Yes, everyone is dead right - dont sign the forms. The one's our mortgage co. sent to us had all sorts of clauses in - I rang them and said I was going to cross bits out and sign, and they said if I signed they would disregard the fact that I'd crossed anything out and take that I'd signed/agreed to all clauses. :eek:

I just let them repossess. Its virtually the same anyway at the end of the day. Both my sec loan and mort. co. also tried to tell me that BR wouldn't include the secured debts...WRONG :rolleyes:

Good luck with everything, take care

MC x

MammaCas

Meant to say -

when I got the court papers for the repo hearing, I wrote to the Court and cc'd the mortgage co, sec loan co and mortgage co solicitors saying that I wasn't contesting the case, had already posted my keys to them and that we were BR.

They scrapped the court hearing and took 'quiet posession' whatever that means...

Just got it over and done with a bit quicker I think.

But was still 7 months AFTER I had stopped paying them and 5 months AFTER I'd moved out....