Help with property and going bankrupt please!

fiveyearplan

Well, I'm still married and I was offered the BI in our home, we have never been contacted by the mortgage provider. I have never heard of any couple who jointly own their home to have problems with the mortgage provider providing they are still paying the mortgage. What I meant by that is, I'm not really sure how it would have affected us if we weren't both still living in the property.

PH1LL

Ah right - I understand.

So it looks like im worrying over nothing about her being able to buy the BI from the OR then.

fiveyearplan

Yes, worrying over nothing. If they don't offer her it straightaway you can ask them. It was 18 months after my BR that I got any notification of BI but I was grateful for the delay.

PH1LL

If by any chance there is equity in the property by the time the BR goes through - does that eman she will have to pay half of the equity to the OR?

She paid a higher deposit than me, although there is no way of prooving this. Any ideas how the OR will treat this?

The value of the property was £129k in 2007, we bought for £118k, mortgage is £116 and current value stands at about £105-110k.

Thanks for all your help by the way.

Phill

debtinfo

fiveyearplan wrote: »

Interesting, is that true in all cases or just when the property falls into the BR?

Yep this is the minimum contact for every person named on a mortgage who goes bankrupt regardless of what happens later to the BI. There may be more contact depending on the situation

fiveyearplan

PH1LL wrote: »

If by any chance there is equity in the property by the time the BR goes through - does that eman she will have to pay half of the equity to the OR?

She paid a higher deposit than me, although there is no way of prooving this. Any ideas how the OR will treat this?

The value of the property was £129k in 2007, we bought for £118k, mortgage is £116 and current value stands at about £105-110k.

Thanks for all your help by the way.

Phill

Proving that she has more than 50% of the equity might be difficult but if you get a move on things while property prices are low there shouldn't be a problem. Say the value of the property went up to £120k, that would be £4k equity so she would have to pay £2k.