Don't know what to do HELP!

JML453

Hi this is complicated. I am posting this on behalf of my son who dosn't have as much internet access as I do.

Last year he bought a property along with 2 "friends" the property was on a "Joint tenancy" which he has since been told should have been a "tenants in common". One of the friends left the property shortly afterwards and didn't contribute to the mortgage, my son and the other friend contacted the mortgage company and let them know, they also tried to continue to pay as normal, whilst they tried to find the third friend to ask them to sign the property over, however this was a struggle. So in October 2008 my son and the remaining friend posted (by special delivery) the keys back to the mortgage company and asked for voluntary repossesion, however we found out on Thursday that the mortgage company have only just started repossession proceedings in June and don't know where the keys are! now my son is liable for the unpaid council tax since last October 2008 and it would appear that this is being taken straight out of his wages. My son contacted National Debt Helpline who advised bankruptcy. My son and the other two "friends" are no longer in contact with each other.

The facts are:

The mortgage arrears are £10,000
The house is in about £30,000 of negative equity.
2 of the three mortgagees have disappeared.
My son is being pursued for council tax for the property which he didn't know he owed.
My son has no assets other than his car which he needs to get to work.
The only other debt he has is his car loan which he can't afford to pay if he moves back into the house.

These are my questions:

1 ) Should my son move back into the house?

2) Should he go bankrupt? - he has spoken to his employers (he works in a bank) about this and they are ok with it as he was a "victim of circumstance"

3) Would an IVA be a better solution

Grateful thanks for any advice.

I used to be an advocate for a charity and give benefits/housing advice to others but I am stuck with this one.

robpw2

if the house has remained empty since october 2008 it should get a reduction in council tax (i believe its50%)does he have proof of the original letter he sent to mortgage company ?

dalip

I would suggest you also get advice from CCCs(number in my sig) and your local cab. Always useful to get more than one opinion.

We do have a cab worker who is a member of this forum and you could maybe send him(debtdoctor)a private message.With any luck he will see this post.

It seems rather harsh that your son should go bc (along with all the implications for many years to come)and the other two get off scott free.BC is a last resort for anybody so it needs to be the right way forward.Dx

debtinfo

Hi, don't worry about the "Joint Tenancy", "Tenants in Common" thing, If he does decide to go bankrupt (and he needs to take further advice on this as dailp says) then the other owners will be liable for the full amount outstanding, it will catch up with them eventually

fiveyearplan

Sorry to hear of the situation your son is in. I would just suggest the same, contact one of the debt charities. He should also contact the council to get the 50% reduction in the council tax for 6 months.

JML453

Thank you very much for your help, I will pass on your replies to my son when he comes over later today, I am afraid he is learning the hard way!