A bit of help please!

Biogrove

Hello all, just a bit of guidence if you could please, i am booked in for a CCCS meeting again, but just wondered if you could advise whilst i am waiting (as i am pulling my hair out!)

I have recently had my house taken off me by the mortgage company (long story, failed business, borrowed the equity to bail it out again and again, until i couldnt borrow any more and couldnt meet the monthly payments) so i have moved into rented accommodation.

Now i can afford to live with my other half in this house, but there is still the outstanding payments due to the mortgage company. The mortgage was £183k, which is now around £200k with all their charges (ironically £1k of them was on a personal debt advice charge for 4 personal visits they made to me, none of which actualy took place! :mad:) From what i understand (please point out when i am wrong) they will auction off the house and come for the difference? There is also a £12k secured loan on the house with the same bank, which we cant meet the monthly payments to, we have been sending token payments of £1 per month to.

I am unsure of which way to turn, by looking at certain posts, i understand BR would be the best option. Is this true? If so, how do i apply, or do i wait for the mortgage company to do this to me????

Any help would be much appreciated!!!!! Many thanks!!!:eek:

alastairq

[QUOTEIf so, how do i apply, or do i wait for the mortgage company to do this to me????
][/QUOTE]

hi...retain your hair.....patchy hair gives the wrong impression!

Other, more knowledgeable folk will be along in a moment..but to start off..I doubt your mortage company will want to 'make you BR'...they'd lose any chance of recovering the excess owed...and it would cost them money.

There are stickies at the top of the page......including the Insolvency Service site..which allows you to complete the relevant paperwork, online if you wish.

The bank will sell the house....but whatever you do, do NOT sign anything from them...despite their pressures for you to do so.

If they cannot raise sufficient monies from the sale, to pay the mortgage, or loan, they will try and pursue you for the balance.

If you chose BR, then this balance will go into the BR pot....

Whether BR is the best option, will depend on all your other circumstances.

Biogrove

Thank you very much for the help, any other advice??

skylight

Is the place in joint names?? What other debts do you have? Any other property? Any other assets? Much debt in joint names?

Your liability to the mortgages shortfall (and other costs) would be included in BR in its entirity. So they will not chase you after BR. If the mortgage is joint then they will chase the other person instead. As with all other joint debts.

Your mortgage company is unlikely to make you BR, but then again, they might! Its not often but some are starting to; as it costs them money they do not recouperate. Their best bet is to just wait for a few years and slap a CCJ (for example) when things have picked up for you, harassing and chasing in the meantime. Usually its best to do BR yourself and just get everything out of the way and over and done with once and for all.

Biogrove

Thanks for the above help, would they accept our position as a reason to go BR. We would be prepared to do so if it means we could start fresh again, every day we are looking in the post and waiting for them to call, i dont think i can go on much longer living in fear of it!!!