What would happen to my house

MS_Dolphin

Hi All,

I've read through all the guides, but it is still unclear to me. Can someone please let me know what will happen to my house - in laymans terms please.

Current situation:

The house and mortgage are in my sole name, but I am married. My son lives with his mum, my ex-partner, but stays at ours two nights a week (don't know if this is relevant).

I have a mortgage with Halifax and a second charge with First Plus. Realistically with the current fall in house prices, the mortgage and loan probably equal the value of the house - on a good day, there might be a few thousand equity, but unlikely.

Would I lose the house or the interest in the house? From what I've read the interest might pass to the receiver, but not always, I didn't fully understand it.

If I don't have to sell it, at what point would it be mine again?

Any help would be appreciated.

maxmycardagain

have to spoken to the advice people (CCCS, national Debtline or CAB) yet?

if you go BR with zero or negative equity the OR can sell on the interest in the property for £1 plus £250 admin fees, which is ok if you can pay the mortgage and realise and secured debts or charging order will remain payable.

the staying access is probably not of interest to the OR

tigerfeet2006

As Max has said if you have negative or zero equity then he can offer to sell the beneficial interest (BI) to a your wife or a reletive. Which you can buy back from them later after discharge. This safeguards the OR coming back and asking for any BI in the next 3 years if house prices should go up.

Would you be able to afford to pay the mortgage and secured loan if you were not paying any other creditors? Are they excessive compared to rental?

As Max has said have you taken advice from one of the debt charities. The judge could delay your petition until you have.

MS_Dolphin

Thanks for the feedback.

I haven't spoken to any of the official debt helplines yet.

I've been partially burying my head in the sand and also paddling to get myself out of trouble.

My unsecured debts are around £600 per month - would be more but for juggling balance transfers etc. This will go up though every month outgoings are more than income and when I have nowhere left to move balance transfers because credit cards are full, then things get past the point of no return.

Could I afford the mortgage and secured loan? It would be difficult, but maybe. It's just that I love where I live and I want to do anything I can to stay there. I know this could well be taken out of my hands, but if possible I want to stay in my home of the last 15 years.

tigerfeet2006

Get on to one of the debt charities and have a chat. They are very busy at the moment so you may have to sit with a cup of coffee and your finger on redial for half an hour. There are some in my sig and some more in the first post of the Bankruptcy Help sticky. This is a useful resource and I would suggest you read it.

Ask any questions you need to, we will help and support you all we can through this.