urgent advice buying the beneficial interest

longshot

hi guys,

need some urgent advice, as a sole owner in negative equity
i am buying the b.i. but have the option of someone like
family/wife/friends buying it - what is better for me to buy it
or someone else????

can any one help??

debtinfo

The only difference is that when you get into positive territory, if you sell the house the money will go to the person who buys the interest. So ake sure you trust the person, or buy it back yourself

longshot

thanks, what happens if someone else buys the interest and you default 12 months
down the line (after BR) - are they responsible for paying half the mortgage?

debtinfo

Hi, no the beneficial interest is not the same as the liability for the mortgage, although if you have not changed or re-signed your mortgage then if you defaulted then your liability would still be taken care of by the bankruptcy.

longshot

thanks but
what's the point in someone else buying the Beneficial Interest?

debtinfo

ok, say for instance a friend (lets call him bob) buys back the BI today, at the moment this is worth nothing as the property is worth nothing. if you continue to pay the mortgage for the next 25 years, pay it off, and lets say the house is worth £100,000. if in 25 years the house is sold Bob gets the £100,000, you get nothing. Of course in reality if you were going to pay the mortgage for the next 25 years then when you got out of the bankruptcy you would just buy the BI back of Bob.

If you can buy it from the OR yourself then it is best to do this. In some cases, say if the BI is worth £5,000 now you wont be able to buy it yourself now and so thats normally when you get someone else to do it for you