IMPORTANT - Voluntary repossession forms and bankruptcy

fermi

Sammy3008 wrote: »

Its been dated, but not signed yet. Do you think we should just send a letter alongside it instead?
There are people that have signed this before BR on here though isn't there?

Misread your post. I thought you were already BR given what they were saying in that email.

If you are not BR yet, in theory you can sign anything you want. It won't make you liable after the BR.

What is the exact wording though out of interest? Have they worded it in a way that might mislead you into thinking you will be?

Sammy3008

fermi wrote: »

Misread your post. I thought you were already BR given what they were saying in that email.

If you are not BR yet, in theory you can sign anything you want. It won't make you liable after the BR.

What is the exact wording though out of interest? Have they worded it in a way that might mislead you into thinking you will be?

Lol, no problem Fermi, I should have said before BR.

The wording the surrender letter that NR sent? Definately from what we read in the letter, it made it sound as though we'd still be liable for the shortfall if DH signed it, it mentions BR in it, one sec, will see if I can find the post, it shows the exact wording that was in the surrender letter.
The other thing, the insolvency people said something about the shortfall becoming a new debt, would that not stop it being included?

Here it is:
I voluntarily surrender posession of the above mentioned property to you and agree to the sale of the property,
The proceeds of the sale will be applied to the account to pay off in whole or in part the balance outstanding.
I understand that should the sale proceeds be insufficient to pay off the total amount outstanding, You and/or any insurer providing indemnity cover (If appropriate) reserve the right to pursue me to recover the shortfall.
If you have any unsecured balances with ourselves (have an unsecured loan too) in the event that the proceeds of sale of our mortgaged property, after deduction of the costs of sale and associated expenses, exceed the amount of the secured element of my loan, then I hereby confirm that those excess monies may be applied in reduction of my unsecured borrowing. I understand that the foregoing is subject to any third party charges there may be against the property or I becoming bankrupt or entering into a formal agreement with creditors prior to completion of the sale of the property and application of the proceeds of sale. (This bit about BR being mentioned, is this normal procedure? If DH signs this letter, if the property doesn't sell before BR, will the shortfall not go into the BR? With it saying as above, its confusing, lol)
If your account is in arrears or arrears accrue and the forms are not returned in 7 days we will proceed with appropriate action to take possession of the property.
On receipt of the completed declaration we will arrange to take possession, if the property has a communal door access, please supply the keys.
If you have any internal keys and an alarm code can you please place these in an envelope addressed to ourselves and leave in the property.
In addition, I note that you are at liberty to remove and/or sell any items of a personal or household nature remaining in the property after the date of my giving possession
Signed......
Date.....

fermi

Sammy3008 wrote: »

The proceeds of the sale will be applied to the account to pay off in whole or in part the balance outstanding.

Stating the obvious, but fair enough.

Sammy3008 wrote: »

I understand that should the sale proceeds be insufficient to pay off the total amount outstanding, You and/or any insurer providing indemnity cover (If appropriate) reserve the right to pursue me to recover the shortfall.

Well, yes. That is what would happen if you didn't go BR after this.

Sammy3008 wrote: »

If you have any unsecured balances with ourselves in the event that the proceeds of sale of our mortgaged property, after deduction of the costs of sale and associated expenses, exceed the amount of the secured element of my loan, then I hereby confirm that those excess monies may be applied in reduction of my unsecured borrowing.

Fair enough. If they actually get a surplus from any sale of the house, they can use it to pay off any unsecured debts you have with them.

Subject to the next part.

Sammy3008 wrote: »

I understand that the foregoing is subject to any third party charges there may be against the property or I becoming bankrupt or entering into a formal agreement with creditors prior to completion of the sale of the property and application of the proceeds of sale.

That bit is the part you mean then?

That is just saying that if you go BR, they can't take any "surplus" to pay your other unsecured debts.

In other words, they would have to give it to the OR.

Can't see anything to worry about in all that.

Sammy3008

Thank you Fermi, very much appreciated

nervousmother

yes a bump from me too, will be really helpful to some people

We_Are_The_Mods

Yes it's helpful for me as I've just had the repossession court hearing date through the door, much sooner than I anticipated.

Is it worth me contacting the solicitors acting on behalf of the mortgage company to try and sort out a voluntary repo, see if we can arrange a date for me to be out like that, rather than the whole court process? only I'm not too well mentally and just the thought of a court hearing has tunred my stomach. Or is it too late for that and I'd be better off letting the process run? can I ask for a bit of extra time to find somewhere to live, say a month or two? I'm tempted to fill all the BR paperwork in now and just be done with it all.

jmrance1

Hope this helps somebody. I have just had my property repossessed. I got free legal advice through the CAB and basically they just told me to ignore everything and don't sign anything. I was in the lucky position that I was not living in the property but I still got plenty of notice of the repossession date. I just kept getting letters from the mortgage company, their solicitors and the court. I just ignored all of them. It was a relief to get the free legal advice to say that it was ok for me to do this.

My OR has not been in touch since my interview so I have no idea what is happening there. My bankruptcy was March 4th so I am hoping to be discharged soon.

I have found the OR to be very unhelpful but I suppose they are working for the people I owe money to rather than for me. Still it would be nice to hear from them once in awhile to find out what is going on.

p.s. I did not go to any of the court hearings as I was afraid I would be forced to sign something.

angiebhfx

Sammy3008 wrote: »

Lol, no problem Fermi, I should have said before BR.

The wording the surrender letter that NR sent? Definately from what we read in the letter, it made it sound as though we'd still be liable for the shortfall if DH signed it, it mentions BR in it, one sec, will see if I can find the post, it shows the exact wording that was in the surrender letter.
The other thing, the insolvency people said something about the shortfall becoming a new debt, would that not stop it being included?

Here it is:
I voluntarily surrender posession of the above mentioned property to you and agree to the sale of the property,
The proceeds of the sale will be applied to the account to pay off in whole or in part the balance outstanding.
I understand that should the sale proceeds be insufficient to pay off the total amount outstanding, You and/or any insurer providing indemnity cover (If appropriate) reserve the right to pursue me to recover the shortfall.
If you have any unsecured balances with ourselves (have an unsecured loan too) in the event that the proceeds of sale of our mortgaged property, after deduction of the costs of sale and associated expenses, exceed the amount of the secured element of my loan, then I hereby confirm that those excess monies may be applied in reduction of my unsecured borrowing. I understand that the foregoing is subject to any third party charges there may be against the property or I becoming bankrupt or entering into a formal agreement with creditors prior to completion of the sale of the property and application of the proceeds of sale. (This bit about BR being mentioned, is this normal procedure? If DH signs this letter, if the property doesn't sell before BR, will the shortfall not go into the BR? With it saying as above, its confusing, lol)
If your account is in arrears or arrears accrue and the forms are not returned in 7 days we will proceed with appropriate action to take possession of the property.
On receipt of the completed declaration we will arrange to take possession, if the property has a communal door access, please supply the keys.
If you have any internal keys and an alarm code can you please place these in an envelope addressed to ourselves and leave in the property.
In addition, I note that you are at liberty to remove and/or sell any items of a personal or household nature remaining in the property after the date of my giving possession
Signed......
Date.....

Sammy3008

Am I correct in assuming your mortgage is with NR and you have a mortgage and an unsecured loan on the property?

angiebhfx

What a dummy, I meant Northern Rock?!!!**

smiales

Rach2007 wrote: »

Hi there

Hoping someone might be able to help me relating to this thread. Myself and DH have just gone br - family home is mortagaged but in a lot of neg equity. We don't know whether to buy back the BI or not as our fixed rate mortgage ends next month and we will be at the mercy of the SVR for I guess 6 years.

/QUOTE]

Could someone clarify the position you are in if you have bought back the BI please? I was declared bankrupt in Aug 07 and discharged Aug 08 and we did buy the BI back but the house went through repossession last May and sold this Feb. Had the odd letter from Mortgage company advising of balance (shortfall plus fee's) but more as an advisory thing than demand, mortgage company has been very good to be fair and know the full history but I still feel that this is hanging over us - but then with a shortfall of about £50k thats probably understandable!

Any advice greatly appreciated.