Bankrupt, Big mortgage shortfall, Advice on future....

desperate-dan_5

Hello Everyone,

Havent posted for a while but been thinking about bankruptcy and just seeking some further advice as starting to worry a little again.

Was decared BR in June this year house repossessed in August still up for sale not selling been reduced massively so shortfall will be massive! What I want to know is will it automatically be included in my BR? As the mortgage company dont know I am BR do I need to inform them as I have moved now and thy dont have my address?

Also how will this affect me in the future is it corrent my credit file will be clean in 6years meaning i can apply for another mortgagae if I have a deposit? or will this be an impossibility forever because of the repossession and shortfall?

Thanks for any advice x

fiveyearplan

Getting another mortgage won't be impossible but having a repo is worse than BR to a mortgage lender. Have you contacted your local council regarding reduction in council tax for 6 months? THe shortfall will go into your BR and your OR will have contacted the mortgage provider already - so they do know! You will be liable for your council tax if you don't inform the council that the property is empty. At the end of the 6 month period you will only be liable for 50% of the council tax as long as the council are informed.

desperate-dan_5

Thanks for prompt reply five year plan - can always count on u x

Yes I have let the council know that it was repossessed in August and they have accepted this - will I have to start paying again then if the property doesnt sell? I now pay c/tax on rented house 2?

In relation to another mortgage obviously I am just happy to be out of the situation but just like to know where I stand in the future. Mum and dad have said if I can save some money over the next 6 years thy would help me out to start again with my own house for me and my little girl. However doesnt seem to be clear where people stand who have been bankrupt. In your experience say someone is 6 years down the line since declaring BR with 20% deposit say, is there some lenders that do not ask about previous br or repossesion or is this jsut wishful thinking?

xx

fiveyearplan

Previously I would say that it would be possible with 20% deposit and BR 6 years behind you but at this stage I don't really think you can guess what things will be like in 6 years. I'm sure you will be able to get a mortgage again so please don't worry about it. I'm hoping to re-mortgage sometime soon but will just have to see whats available at the time.

In the meantime, enjoy your rented place without worrying about repairs etc and enjoy life. When you think you're ready to buy again you'll just have to see whats available at that time and work towards it. You'll do it!

Hope you had a good Christmas and are enjoying the festivities!

debtinfo

who can say where the mortgage market will be in 6 years, if you had told someone what had happened over the last years, 2 years ago, they would have locked you up in a nuthouse. The good thing is that there is no legal bar, it just depends on the willingness of the lender at the time

desperate-dan_5

I know silly really just cant help feeling like I have failed! Know its silly but I always put pressure on myself. Thanks for your advice I really appreciate it.

Where do I stand with the council tax then, I am confused with that?

x

debtinfo

if it has been reposessed, you are not liable anymore, its the time between leaving the property and an official repossession which is the problem

desperate-dan_5

Ok thanks I have had to pay that already! x

nervousmother

from what i have read is that the repo stays on the CML database (council of mortgage lenders) for 6 years, this is the same as any BR would stay on your credit file. Although I know you have to tell if they ask in 6 years wether you have ever bieng BR im not sure wether you ahve to admit to a REPO or not...

computershack

desperate-dan wrote: »

Was decared BR in June this year house repossessed in August still up for sale not selling been reduced massively so shortfall will be massive! What I want to know is will it automatically be included in my BR? As the mortgage company dont know I am BR do I need to inform them as I have moved now and thy dont have my address?

Also how will this affect me in the future is it corrent my credit file will be clean in 6years meaning i can apply for another mortgagae if I have a deposit? or will this be an impossibility forever because of the repossession and shortfall?

Thanks for any advice x

No your mortgage will not be included in the BR order as the repossession went through AFTER the date of the order. You only need to inform lenders when applying for credit that you're BR, not current lenders so the mortgage company don't need to be told but they will already know.

Your BR will affect you as long as its on your record, so 6 years. The repossession will affect you for far longer because until you've paid the shortfall, its down as a default.

debtinfo

Hi computer shack, im afraid this is incorrect. The shortfall will always be included in the bankruptcy regardless of when the property is repossessed as long as the bankrupt does not sign to accept any liability after the bankruptcy order is made