For all those who have managed to keep their house...

Rach2007_2

I was just looking for some stories about people who have managed to keep their homes after bankruptcy. It's the one thing that's holding me back, giving me the most sleepless nights IFKWIM.

I have researched this issue loads and loads, the beneficial interest thing (£1 if in negative equity), spoke to the insolvency service etc but am petrified that the OR might try and press for an order of sale, say if he thinks our mortgage is too high tho the CCCS have told us this is unlikely to happen.

So any stories please, good or bad outcomes, just to try and give me an even better picture of the procedure.

Many thanks

Rach

maxmycardagain

I think the OR may only insist the house goes if it looks like paying the mortgage post-BR is an issue, as they cant let you carry on as insolvent post-BR, preferring you downsize house and rent

Tinytim

Hi Rach,

If your property is worth less than that owed on it, it is virtually certain that you would be able to keep it.

The OR has two functions - he has to make sure that you didn't do anything improper in the lead up to your BR, and he has to secure as much money as possible for the benefit of your creditors whilst still allowing you the ability to maintain a modest standard of living. In securing money for your creditor, he will look at both your capital assets and your income. If your home is worth less than the mortgage, the OR will not force a sale - there would be no benefit to your creditors in doing so.

As far as your income is concerned, the OR will examine how much of your income is left after deducting your reasonable expenses, and if there is a surplus of more than £100, you are likely to have to pat an IPA/IPO. It may be that even though your house is in negative equity, the monthly mortgage cost is more than the OR considers reasonable. In this case, he would diss-allow a certain amount or the mortgage which you would have to meet from surplus or spending less on some other things. Even then, the OR would not force a sale.

The key thing to remember is that the OR and staff are civil servants who have a specific job to do, and that does not included passing judgement or meeting out punishment.

tigerfeet2006

How much is your mortgage in relation to rental properties in your area?

Beautifully put Tinytim:T

Rach2007_2

Hi, thanks for all your replies. The house is def in negative equity. Worth about £190k, the mortgage on it is £194k. We pay £904 per month, but could rent for about £700 per month. Surely such a small difference would be OK?

The insolvency service have told me on several occassions that they are not in the business of turfing families out of their homes (we have a pre-schooler and a baby), but just to be certain of the value of our home before we go br.

Does anyone know how quickly the beneficial interest can be bought back? Emotionally I can cope with everything else but I would not sleep a wink until the interest could be transfered back to my husband and I.

thanks again

Rach

nervousmother

It may not be quick, as there is no money to release from it it may not be first on the list for the OR to deal with.
The OR has 3 years to deal with his interest in your property. If you have a family he could not 'turf' you out for the first year anyway

tigerfeet2006

Rach2007 wrote: »

Hi, thanks for all your replies. The house is def in negative equity. Worth about £190k, the mortgage on it is £194k. We pay £904 per month, but could rent for about £700 per month. Surely such a small difference would be OK? Nope they won't turf you out for that amount and as you have said it is in negative equity.

The insolvency service have told me on several occassions that they are not in the business of turfing families out of their homes (we have a pre-schooler and a baby), but just to be certain of the value of our home before we go br. Believe them

Does anyone know how quickly the beneficial interest can be bought back? Emotionally I can cope with everything else but I would not sleep a wink until the interest could be transfered back to my husband and I. How long is a piece of string? Some OR's will sort it in a month or two but some will take longer depending on thier workload.

thanks again

Rach

I know it is easy for me to say but try to not worry so much. (((hugs)))

roxy84

Hi, Oh & I both went BR and we have kept our house. At the time our mortgage was £900 with a £140 secured loan, we could of rented a similar house for about £700. The OR wasnt interested in it, didnt even speak to me about it just briefly mentioned it to OH.
We have about £15k negative equity now.

We were given the opportunity to buy our BI about 4 months into our BR, but at the time we couldnt decide what to do, we have only just done it (18 months after br) Like said before you get 3 years to do it

If you want to know anything id be happy to help if i can

Rach2007_2

thanks!

So he could just sit on it for anything up to 3 years then? As we are only £4k in negative equity there is a chance that before the 3 years is up our house could go back into positive equity? He would then have a case to look at releasing this equity wouldn't he?

Tiger thanks I am trying not to worry and thanks so much for the hugs but we have been here three years now and in the last 6 months only just feel settled finally. We couldn't bear to uproot again

nervousmother

You will worry, you have children. I doubt the OR would ask you to leave based on your mortgage payments.
If im honest I think they will deal with it within the year as they will want things 'wrapped up' although nothing is guaranteed that is the reason I wanted you to know about the 3 years, BTW if they dont deal with it within the 3 years the property automatically reverts back to you.. meaning they cant touch it so for them to leave it that long is rare.
When we went BR i was happy, but the thing that scared me most was loosing the 'family home' luckily ours was dealt with within 3 months, but they had equity they wanted our MIL had to purchase it back for us. But being a mother I know what your going through.
good luck.

tigerfeet2006

Being someone who has lost their family home and having to spend 10 months in a B&B with a baby all in one tiny room with an small ensuite shower room and no cooking or clothes washing facilities I know where you are coming from so please don't let the worry get to you too much, looking at your circumstances and having confirmation from the chaps on here and the IS you will be fine.