Northern Rock Selling House 55k under asking price!!!

tomterm8

nervousmother wrote: »

Bankruptcy is not really an option for sadnewmum. Yes she could go BR but then all of the debt would fall on her mum, as her mum has assets (her own house) she would loose everything she owned.
Take legal advice. I think your best bet at the minute is just to wait until the house has sold, Saving like made meantime (as you have stopped the mortgage payments) Once it has sold offer northern rock a sum as 'full and final settlement'

Bankruptcy IS an option for sadnewmum. The reality is, regardless of whether sadnewmum declares bankruptcy, they can still go after her mothers assets, and if they decide to do so the fact that sadnewmum decided to declare bankruptcy or not is irrelevant.

Our best advice should be that sadnewmum pursues the choice that costs her least. This may very well be bankruptcy. This would extinguish her unsecured debts, allowing her (after the bankruptcy period) to give preferential treatment to repaying the mortgage. Her mother could charge her a fair market rent for living in the house, so it would still be possible to help repay the mortgage during the period of bankruptcy.

nervousmother

Bankruptcy would not do anything at all to improve her situation. She has no other debts. She is more worried about her mum than herself. I think at this point Bankruptcy would only add to the stress and worry. Having to go to court having to see the official receiver. Going through her financies over the past two years and maybe having an income payments order put on her,

All for no use as Northern rock would not give a *monkeys* if she went BR as they have mum to chase and her assets.

I still stick by my advice for her to save like mad until the house has sold and northern rock contacts her on the hope they will take a smaller amount as full and final settlement, Even if they dont I doubt they would take mothers house if she agreed a re-payment plan.

I wish her all the best in the future, I really hope things work out. If Sadnewmum wishes to PM me again she is welcome to. I will not be adding to this thread anymore.

cat_lady_4

sad new mum, i dont have any other advice to give, except that your own health is really important. i hope you manage to get the professional advice you need. (((((((((((((((hugs))))))))))))

tomterm8

nervousmother wrote: »

Bankruptcy would not do anything at all to improve her situation. She has no other debts. She is more worried about her mum than herself. I think at this point Bankruptcy would only add to the stress and worry. Having to go to court having to see the official receiver. Going through her financies over the past two years and maybe having an income payments order put on her,

All for no use as Northern rock would not give a *monkeys* if she went BR as they have mum to chase and her assets.

I still stick by my advice for her to save like mad until the house has sold and northern rock contacts her on the hope they will take a smaller amount as full and final settlement, Even if they dont I doubt they would take mothers house if she agreed a re-payment plan.

I wish her all the best in the future, I really hope things work out. If Sadnewmum wishes to PM me again she is welcome to. I will not be adding to this thread anymore.

Why not add any more to this thread? You've only given helpful, kind and intelligent comment so far. We may disagree on the bankruptcy thing, but I do value your opinion. The content of the edit didn't relate in any way to your posts. I've removed the edit anyway beacuse it related to posts that appear to have been moderated away - none of which were by you.

nervousmother

Thank you Tom,
You were not the reason I had said 'I will not be adding to this thread anymore' so I am sorry if you think you were. I had noticed some comments made by people who had no valuable input, the comments were there only to add distress to an already awful situation. I have noticed these posts are now removed & that I am glad.
Alot of people will be reading this thread who are in a situation similar to sadnewmum. They may have a lot of negative equity & bankruptcy may be the best course of action for them. I urge anyone in this situation to get legal and proffessional advice.
all the best nervousmother

Nargleblast

Lessons to be learnt here I think. We should not get hung up about property values - a house is still the same pile of bricks whether it sells for £100,000 or ten times that amount. It is only ever worth what someone will pay for it. We don't know what will happen - after all, who would have thought a few years ago that some fanatics would drive a couple of planes into the World Trade Centre? Who would have thought just over 30 years ago that we would have a female Prime Minister? A few years ago I thought bankers were honest people who could be trusted with other people's money, now look what is coming to light. Certainly Sadnewmum needs to take advantage of one of the free half hour appointments with a local solicitor to establish the legal position of herself, other half and mother. How about reading some of the stuff on the Bankruptcy section of the forums? She may not need to go down that route but it does not hurt to get a bit of info.

The best advice for anyone is - to get the best advice. This site has loads on offer from its contributors, CCCS also, solicitors, local library, CAB. Go out there and grab it and start taking control. This could be day one of a brand new start.

ghostmadlittlemiss

You will get through this in the end. There's one woman on here (Hypno06, look her up) who started off just over 2 years ago with £64,214.73 worth of debt. She's now down to £36475.34, so she's almost halved her debt in two years. So it is possible. And you could end up with less debt then 55k, depending on what the house goes for in the end.

A couple of questions. What job did you do before you become redundant? I'm asking because I'm curious as to how easy or hard it would be for you to get into another job once your maternity leave is over. Also, does you OH work and if so, what does he do?

There will be an end to this one day and paying off huge debts doesn't mean scraping by for the rest of your life. Yes, you'll have to cut back but there are ways to cut back and still have a decent standard of living. At the moment, it's mostly a waiting game to see what your house sells for, then you can determine the best way forward. I'll keeping dropping in here to see how things go. Good luck.
Kaylegh

ad9898_3

There really is only 2 choices, bankruptcy or pay off the debt (which might actually be more when the house is sold)

The consequences of bankruptcy are clear, the OP's mum will be dragged down with her, my view would be to pay off the debt if what the OP's can offer, the bank will accept. If the bank won't accept then, unfortunately her mum will have to stump up.

I know people like the hugs and stuff on here, but seriously the OP needs to shape up and face the future, the fact that she has a new baby should quadruple her resolve to get through it. Get a job (2 if necessary), her OH should take some responsibility to help his family, again work 2-3 jobs if that is what is required.

If this thread does anything, it might help some other DFW's, not to get into this sort of situation, to have you're parents go on a mortgage on a house that you can not afford is...... well...... I don't need to say it do I.

CCCS_Amanda

Sadnewmum wrote: »

My home has been repossessed, and Northern Rock have put it back on the market 55k under the asking price... can they do that. I have only just found out from looking through our local paper. It would leave me 60/70k in debt if they do that - will costs etc.

I feel suicidal.. I don't know what to do.
Please help

Hi there Sadnewmum,

If your house has been repossessed then the lender will market the property and when sold will calculate the ‘shortfall’ on the mortgage. This is essentially the amount left outstanding after fees are added and less the proceeds from sale. The bank will then contact both mortgagees to advise them of the shortfall and they will want payment.

There are a few ways that you can deal with this and I advise you to take advice before you proceed.

• You can petition for Bankruptcy. This will mean that you will no longer be responsible for the shortfall and any other unsecured debts. Your mother, however, has to be careful because of the equity in her property as this would be taken into account in bankruptcy. If her equity in the property exceeds the shortfall then this would not be an option for her.

• Check your paperwork to see if a Money Judgement was set at time of possession. A money judgement stipulates how much you should have to pay on the shortfall as agreed by the court. If no money Judgement was set you can make an offer of payment based on your Income and Expenditure. If the creditor is unhappy with the offer then they will try to collect a monthly instalment from your mum to bump up the amount paid. If the creditor is still not happy with what is being paid then they can apply in the High Court (as the debt is over 25K) for a High Court Judgement (HCJ). This would probably be one HCJ for you and one for your Mum. You would respond to the HCJ and make an offer of payment based on your budget. As the lender knows that your mum has equity in her property then they may apply for a Charging order at time of Judgement to ensure that the debt is protected. It will not mean that your mum will have to sell the property nor lose the property but an instalment agreement will have to be reached.

• If you have access to a lump sum then you could see if the creditor will accept a Full and Final settlement. A Full and Final settlement offeris when a debtor offers a creditor a one-off lump sum payment, of less than the full amount owed, in return for the creditor agreeing to write off the rest of the debt.

Again, I would really advise that both you and your mother take some advice. The way that you deal with the situation may be totally different than how your mum will have to deal with it.

I am sorry if our wires have been somehow crossed, but I hope that this clears things up. If you have any other queries feel free to reach us at [EMAIL="contactus@cccs.co.uk"]contactus@cccs.co.uk[/EMAIL].

Regards,
CCCS_Amanda