Mortgage conditions

sieve

Hi all,

Going through BR, looking to keep my house as it's in negative equity and going to get someone to buy the beneficial interest in it.

Had a look at my mortgage conditions and this is alarming me:

13. Immediate Payment of the Loan
13.1 If any of the following occur, we may demand that the unpaid balance of the Loan together with any interest and other charges and expenses which have accrued be paid immediately:

...

13.1.4 A bankruptcy order is made against you or we reasonably believe that one is likely to be made

...

Now it also says that they may do it if a monthly payment is not made on time, which has happened in the past. I also think that that would be stupid to try and do this as the property is in negative equity, and if they took posession of it, they'd have to write the surplus off because I am going BR. But it still begs the question, are they likely to try and do something funny or will they be ok if I keep my payments up (which I can afford to)?

TIA for your thoughts.

Cheers,

S

fermi

The operative word is "may".

Since you are in negative equity they would be NUTS to do anything.

I don't think I have ever heard of a mortgage lender being a problem as long as you can afford to keep paying.

sieve

fermi wrote: »

The operative word is "may".

Since you are in negative equity they would be NUTS to do anything.

I don't think I have ever heard of a mortgage lender being a problem as long as you can afford to keep paying.

Brilliant, thanks Fermi - big help. I guess it gives them the right to, but like you say they would be nuts to do anything.

Thanks again

DON79

I have to say that this is a big worry for me too especially since we are with a sub prime lender, I am just keeping my head down and hoping for the best. We can afford the mortgage and since we are also in negative equity (with a dodgy roof!) then I doubt they will want to take the property back since we can still pay it.

Donna

sieve

DON79 wrote: »

I have to say that this is a big worry for me too especially since we are with a sub prime lender, I am just keeping my head down and hoping for the best. We can afford the mortgage and since we are also in negative equity (with a dodgy roof!) then I doubt they will want to take the property back since we can still pay it.

Donna

Fingers crossed Donna. I've just had mine valued by an estate agent - 140/142 quick sale (I owe 165+10k redemption penalty) so that should hopefully be enough -ve to stop the OR having any interest in it...

DON79

most recent estimate on mine which I got online was £90,000 and we owe about £100k with an 8K redemption penalty before our fixed period ends.

so definitely fingers crossed!!

sieve

DON79 wrote: »

most recent estimate on mine which I got online was £90,000 and we owe about £100k with an 8K redemption penalty before our fixed period ends.

so definitely fingers crossed!!

You should be okay then. When is your BR date? I've got just under 5 weeks until mine so I'll let you know what happens when I speak to my OR shortly afterwards...

No intention of telling the mortgage company myself - can't see they'll have a problem if I keep paying them.

DON79

I already been to court and done the deed so I will let you know if I hear anything at all! Its been about a month since I went BR so not been very long really.

I am not telling my mortgage company either although I am still awaiting my OR interview.

Donna

sieve

I should have read your sig really shouldn't I

Fingers crossed for tomorrow! Let us know how it goes...