Secured Loan & Equity

mtysocks

Hi All

I just have a quick quetion that's been niggling me about my bankruptcy.

My house is roughly £10k - £20k in negative equity. The mortgage is in my name only. However, the house has a secured loan on it as well. I am declared bankrupt, but my wife is not.

When the OR calculates the price/equity in the house, what would happen in the above scenario, and how would they value it to see if there was any equity in it.


All help appreciated.

Cash_Waster

Whos name is on the joint loan?

Also my reading is you would have to be out of the house to get it all dealt with by your OR

mtysocks

I dont think I made my post very clear.

The amount outstanding on the mortgage is about £70k. This is in my name only. In addition, there is a secured loan of about £17k. The secured loan is in joint name (me & wife). We were hoping that we would be able to keep the house.

mtysocks

Has anyone got any thoughts/advice on this matter? Many Thanks

EnslavedByDebts

If your house is in negative equity then the OR is unlikely to take the house form you. This would mean that you could keep the house so long as you can keep up the mortgage and secured loan payment and also that the two monthly amounts are not hundreds of pounds more than rental of a similar house in your area.

It would make no difference as far as i am aware that your name is on one and both names are on the other. The house is still in negative equity.

EBD

P.S. If i am wrong then someone will correct me but this is how i understand it.

Merry_Gentry

If you are planning on keeping the house, then it makes no difference - continue making payments to the mortgage and the secured loan. If you don't want to keep the house, and the mortgage is just in your name, your partner will be chased for the secured loan as it is in joint names.

mtysocks

Thank you for your reply. It is very much appreciated.

We do want to keep the house, and have been paying the mortgage & secured loan payments.

All we need now is the OR to say that it is negative equity!

peachyprice

The OR will have a rough idea of house prices in your area, and may do a drive by valuation just to make sure yours isn't the only house in the street with a big extension/designer garden etc., Other than that if it's alot of NE they won't bother asking for valuations.