Voluntary reposession and bakruptcy and divorce

Merry_Gentry

I found it! :hello:

Doglover wrote: »

In your opininion would they be better to try and sell the property themselves rather than vol repo? I have heard stories of mortgage companies selling far lower than you could yourself.
If the intention is to go br, then there seems little point. The stress and strain of selling a house that you know isn't going to make enough money, combined with going bankrupt would make me yank out my hair! :eek: If the decision has been made to go bankrupt, I would stop paying the mortgage, and start looking for a suitable rental property. Use the money saved to pay bankruptcy fees, agency fees, removal costs, etc.

The mention about the poss of an iva after selling the house links back to the job - as i said I think he has approval to go br but I am thinking of a potential back up plan if the employers withdraw their authority.
The above doesn't apply if he's going for an IVA - I don't know much about them so wouldn't feel able to advise.

Also, as it's in their joint names, if he went br - would she be left in a position where she is being chased for all their debt unless she goes br too?
Yep - basically the position I was in. XHTB was advised bankruptcy by CCCS. The mortgage was the only debt that was joint, but unfortunately it was enough to tip me over as well. We went for voluntary repo, basically stopped paying the mortgage and moved into rented accommodation. We refused to sign the acknowledgement letter sent by the mortgage company (NR), and as far as I'm aware they have done absolutely nothing about repossession - in fact, my keys still work in the door despite us moving out in June 2008 :eek:

I would suggest your friend's wife get separate advice for herself, just to calm any fears she might have, and to reassure herself about her position. Even though I had little choice, I spoke to CCCS and asked about the things that were relevant to me so I wasn't a victim, knew what was going on at all times, and felt in control. Good job too, as we split up shortly after going BR and I have gone through my bankruptcy alone apart from the stellar chums on here :T

Hope that helps

Doglover

Merry_Gentry wrote: »

I found it! :hello:



Hope that helps

I am very grateful to you, thank you. :j Also, thanks for tracking me down!! I'll post on here again tomorrow or later once I know a bit more from him.

I'd be grateful if you'd keep an eye out for future posts as you really seem to know a lot and your comments are really helpful.

Merry_Gentry

Thank you kindly sir - I try to pay back some of what this fantastic set of people did for me when I was going br.

Doglover

Hi again, i wanted to say a big thank you to everyone who replied to my questions and offered their support. My friend had already decided to go br by the time we met up. I was able to help him with budgeting for life post br and whilst he left feeling pretty down, he did feel better for facing the problems and knowing what to expect. It's going to be a big culture shock for him but he's ready to face it and get on with things and make the best of it.

Thank you once again :rotfl:

nervousmother

Doglover wrote: »

If they decided to sell their house for a figure lower than the debt owed (for example debt is £200K and they sell for £50K) the land reg would allow the property sale to proceed regardless of the charge on the property for the mortgage - is that correct? It would be up to them to find the balance in order to repay the mortgage - am i right? Would the mortgage company expect immediate settlement of the total outstanding once the house has sold (because presumably the asset that they agreed to lend on would no longer be there).

I think they would find the mortgage company will not allow them to sell the house for less than the mortgage.
We owed mortgage co 269k had offer on property of 260k but they would not let us sell it. They then repossessed property and to rub salt in wound sold it for 190k to the guy who offered 260k. by this time with repo fees added interest ect they put our debt up to 310k. hence our BR.

If they have cash in order to pay the difference they would allow the sale to go through. If possible better to sell rather than repo as they sell at stupid prices, although if intention is to go BR there is no point having stress of selling.

Merry_Gentry

Doglover wrote: »

Hi again, i wanted to say a big thank you to everyone who replied to my questions and offered their support. My friend had already decided to go br by the time we met up. I was able to help him with budgeting for life post br and whilst he left feeling pretty down, he did feel better for facing the problems and knowing what to expect. It's going to be a big culture shock for him but he's ready to face it and get on with things and make the best of it.

Thank you once again :rotfl:

Glad it went well and thanks for letting us know

Doglover

nervousmother wrote: »

I think they would find the mortgage company will not allow them to sell the house for less than the mortgage.
We owed mortgage co 269k had offer on property of 260k but they would not let us sell it. They then repossessed property and to rub salt in wound sold it for 190k to the guy who offered 260k. by this time with repo fees added interest ect they put our debt up to 310k. hence our BR.

If they have cash in order to pay the difference they would allow the sale to go through. If possible better to sell rather than repo as they sell at stupid prices, although if intention is to go BR there is no point having stress of selling.

How horrible, what mean s0ds!! Thank you for the info though.