Should we go for repossession and Bankruptcy???

occo33

Hi new to this but would love some advice.

My husband lost his job whilst I was on maternity leave and we were also taking a payment break from our mortgage. This was a blessing at the time but now means that we owe our mortgage company more than we origionally borrowed. We have just under £20,000 in debts which we are managing through CCCS but even that has been put down to the lowest possible payment. We are having our house valued tomorrow but going on how much the rest of the street are selling at we are going to be in about £30,000 negative equity. I am now back at work and my husband is looking for work but in the meantime as there is nothing available to him he is looking after the kids. We have to start payingthe mortgage again at the end of this week and would like some advice on bankruptcy and repossession. If we stop paying the mortgage as of now how long will it be before we are made homeless?? Is there any point in struggling to pay for a house that is not worth anything.

Thank you in advance :rotfl:

wallopadonkey

hi there, i'm sure there will be an expert along any minute to advise however in the meantime we stopped paying our mortgage (amber homeloans) end of june and with it the secured loan and still have not to today had any court paperwork or any notification of it pending.
i do know of people missing 3 payments and being in court within a cpl weeks of that

tigerfeet2006

With the new government guidelines a lot of mortgage companies are giving 6 months before starting things, not all it has to be said but most. From experiance on here it seems to be taking a minimum of 6 months to be evicted.

Quite a number on the board have done this very sucessfully and I am sure someone will be along soon to tell you how it was for them.

Meanwhile as you are with CCCS give them a ring and have a chat with them about going BR and all the pro's and con's. You will need to do this as the judge may postpone your petition until you have taken professional advice.

Meanwhile read as much as you can on here especially the Bankruptcy Help sticky at the top of the front BR page and ask as many questions as you need.

DON79

Hi Occo, I was in the middle of a reply to you but my whole computer crashed :mad: but I see TF has helped you out so all I need to say now is -

:j welcome!

peachyprice

Whether or not you give your house up just because it is in negative equity depends how you view it.

Is it a house you could spend the next 20 years in or did you intend to move anyway? If you intent to stay the fact that it is in negative equity now is irrelevant, sometime in the future house prices will rise and you'll no longer be in negative equity.

How much does your mortgage compare to renting a similar house in your area? If there isn't much difference would it be better to stay put having the security of not being at the beck and call of a landlord who could ask you 2 leave with 2 months notice.

On the other hand if you can't afford the mortgage and it's much cheaper to rent there's little point in hanging onto the house

If you were to go BR and all the rest of your debts were gtone would you then be able to pay the mortgage?

occo33

Hi

Thanks for you replys so far. We are on a fixed term for another 2 and half years with our current mortgage and could get to remortgage time and not be able to get a good deal. In 2 and a half years I do not think we will even be back to the figure that we origionally borrowed before we have to remortgage and it would be a real struggle to live in that time. It just does not seem worth it. To rent would save us a minimum of £200 a month which is a lot of money at the moment to us.

fiveyearplan

Hi and welcome occo. If you stop paying the mortgage it will be some time before they repossess - they have to go to court so I would say minimum 3 months. If you did rent then you could claim housing benefit.

Do you want to stay in your property or do you want to get shot of it?

wallopadonkey

we stopped paying our mortgage and secured loan on the advice of cccs at the end of june
and still not had them try to take it back yet
mortgage is with amber homeloans
and secured loan is with first plus
however he have friends in trouble and they missed 3 qnd ended up in court 2 weeks after the 3rd missed payment
so i spose it depends on the lender really
we were in negative equity and hated the house with a passion we now have a nicer house which cost less rent than our old interest only mortgage and we should get 200 housing benefit a month as well which will make us show a £2 SURPLUS PER MONTH lol
hth
dave

smilernpb

Someone I knew missed six months and then plucked up the courage to speak to the lender and they didn't get reposessed. That was Natwest.

sassyseph

we are in a very similar situation although i am now on benifits and my husband is looking for work we have been on a break with our lender and are due to pay this month, we can just about make that all other debts are the problem, we have no equity in the house mortgage and secured loan seen to that but we seem to have got deeper and deeper in trouble, my other debs are now with payplan but if i though i could go bankrupt and keep my home i would is this possible/ can someone tell me, if we had no debts we would be able to pay the mortgage and the secured loan on top is this possible to do we live in scotland i believe that might make a difference, can anyone help please? i think i may have put this in your question sorry new to this

Lensman_2

HSBC took 5 months of missed payments to pass it on to a solicitor. It will be another 2 months before the solicitors said they will actually start proceedings. My last payment was June. Proceedings may start 12th Jan.