Selling house while BR.

Buitre

Quick question...

If I keep on paying the mortgage and the OR decides that I can keep my house while BR...What would happen if during BR I sell the house. Let's imagine 3 scenarios:

During BR see my house:
a) I sell my house and I get some profit from it. I think this money will go to the OR, wht is fair as I am BR.
b) I seel my house but I dont get any profit after paying mortgage+loan

skylight

Its a lose, lose situation. If you have NOT yet bought your beneficial interest from the OR.
If there is any profit, the OR will take your % as he "owns" your beneficial interest.
No profit, then no problem.
Deficit - then the secured loan company will block the sale as they do not get paid. They "claim" you can turn it into a standard loan, but this takes such a long, long, long, long (get it) time, that your sale falls through. I have not come across anyone here yet who has been permitted to sell and convert the loan.

As there is no benefit to you selling at all whilst BR, then why bother?? Its an awful lot of stress.


Now. If there is no equity in it now, then you can buy the beneficial interest from the OR £1 plus £221 fees (at present) if offered. After which you can sell and keep any profit. But if there is no equity in it now, then again, its not worth selling!! And my other points still apply (about deficit etc).

Of course, the OR may decide that he wants to retain the BI in the property and not offer it to you (not usual) but he does have up to 3 years to do this in. He does this if he feels the market will change sufficiently within that time frame. Its not usual at the moment as its felt markets are not likely to change.

Buitre

Thank you!

To be honest, I dont want the property...Actually I was thinking even in vol repos. However, one of my friends looks interested in the property but he cannot get a mortgage yet as he does not have enought deposit. He will soon get some money from his family for the deposit.

How can I buy the BI?
He also offered to pay the mortgage while he does not get the mortgage, it could be about 3 or 4 months,..., so I keep paying mortgage but he pays to me...Of course, he want to have a private contract with a lawyer to clarify the sell of the house.

Anyone has an idea how to do this?
1.-Buy the BI ( in case OR offers to me )
2.-Do a privte contract to seel the house, clarifying he will pay the mortgage to me until he get the mortgage

skylight

The BI - the official receiver may offer this to you once you go BR. It may take a few months to sort out though. Its something you need to discuss with your OR after your made BR.

As to selling, a private contract between you and your friend will have no bearing on the propertys BI, ownership etc. It will just be a contract for him to pay for the mortgage between yourselves that actually will be a bit meaningless - he gets nothing out of it unless he attaches an interest in the property at land registry which in turn will look dodgy to the OR.... And there will be a cost associated with this. If the value of the property means the secured loan is still not paid for, the secured loan company will block the sale regardless.

It makes no difference to you - bankruptcy or vol repo. Both look bad on your credit file and having both doesn't make it worse. Your friends best bet would be to get as much deposit together as he can and make your bank an offer to buy it after its repo'd - he would be able to get it much, much cheaper but its a gamble as to whether the bank allow him to buy it though - they may think an auction is better for them.

BR is stressful enough - I personally think that you trying to sell the house at all is going to add to the stress and in the long run is not worth it, to you.

Buitre

thank you!