court date and neg equity

thegoodlife

I havent filled out my BR forms fully yet can I call the courts to get a date before I have them completed?
Also just had my house valued by an estate agent to get an idea of what to put on the form, and it looks like we are around 20,000 in negative equity, we can afford the mortgage and would love to keep our house which is modest, is there a problem with the neg equity?
thanks xx

wurzella

You could make the appointment but I wouldn't if I were you. There will likely be a few things you're not sure about and need more advice on, you don't want to get to the day before court and not have it completed.

As far as your house is concerned, as long as it's in negative equity they won't be interested in it, they don't want to make you homeless, they only want to get what money they can. No money in house = no interst

peachyprice

I would phone your county court now and see how long you're likely to have to wait, it could be upt to 6 weeks, so it's better to make the appointment now, you can always re-schedule if you're not ready. The forms should only take a day at the most to fill in once you have all the info.

As for negative equity, in BR it is your friend and the best possible position to be in.

HTH

tic_toc

Hi,

If your house is in negative equity then the OR will not have an interest in it.
Once you have gone BR the OR will ask you to get a couple of valuations done and forward them to him. This is his way of making sure it is in NE.
Once the OR sees it is in NE, he will write to you and offer you the opportunity to buy back your beneficial interest in it. This is because once you go BR, legally it is not your house anymore, it belongs to the OR.
Some OR's will insist on a friend or family member buying your BI until after you are discharged from BR, some will allow you to buy it back yourself. It will depend on your personal OR.
As it is in NE you will be able to buy back the BI for £1 plus you will have to pay the OR's solicitors fees which is about £200.
The house will then be yours again and you will not be able to include any shortfall in your BR if you sold it in the future (I think i am right on that bit, maybe someone could clarify it).

I am in the same position have gone BR in June. We have just had the letter re buying back the BI.

The most important thing is to keep up with your mortgage payments.

I hope this helps and good luck.

peachyprice

tic_toc wrote: »

hi,

if your house is in negative equity then the or will not have an interest in it.
Once you have gone br the or will ask you to get a couple of valuations done and forward them to him. This is his way of making sure it is in ne.
Once the or sees it is in ne, he will write to you and offer you the opportunity to buy back your beneficial interest in it. this is because once you go br, legally it is not your house anymore, it belongs to the or. This isn't quite so, the OR has a vested interest in the house, but this doesn't change the ownership. BI and ownership are different things entirely.


some or's will insist on a friend or family member buying your bi until after you are discharged from br, some will allow you to buy it back yourself. It will depend on your personal or.
As it is in ne you will be able to buy back the bi for £1 plus you will have to pay the or's solicitors fees which is about £200.
The house will then be yours again and you will not be able to include any shortfall in your br if you sold it in the future (i think i am right on that bit, maybe someone could clarify it). again this is not the case, buying the bi is only buying back the or's interest in the equity, any future mortgage shortfall is still a provable debt in your br.

i am in the same position have gone br in june. We have just had the letter re buying back the bi.

The most important thing is to keep up with your mortgage payments.

I hope this helps and good luck.

hth...........................

thegoodlife

Thanks I that was all very helpful! I am getting on with the forms tonight so will call the courts and see when I can go BR!
THANKS AGAIN

debtinfo

In a solely owned property it is the legal title that belongs to the OR, in a jointly owned property it is the beneficial interest, even if both both proprietors are bankrupt