Urgent help needed re vol repo

lisy37

Hi - I am really hoping that someone out there has the knowledge to help me as once again I am feeling very scared and confused.
Ok a little bit of background - long story but like most people on here I ended up in a lot of debt some of which with my ex husband although in my name only! Well last summer he decided to leave the country - I dont know where he is living now - had no contact and he has not given any maintenance since going so suddenly my income plummeted.
So Jan this year I declared bankrupty and in Feb moved out of a mortgaged property (mortgage in joint names with 2nd ex husband!) I have moved into a private rental and wrote to my mortgage company regarding voluntary repossesion. After 5 weeks I received a letter from them (redirected from my mortgaged address) stating that external field agents have been unable to contact me with regards to difficulties I am having in paying mortgage - so I phoned my mortgage company and explained that I have sent letter to them 5 weeks ago offering voluntary repossession - the chap on the phone has now informed me that in order for the property to be repossessed voluntarily I need to sign a letter stating exactly that. (I did not sign first letter following advice on here) they will then contact me with further correspondance for me to sign - if I dont then they will go for a repossession (not voluntary) but he has informed me that the voluntary will be the quicker option as oppossed to them taking possession but in either case I will be liable for any shortfall? He told me that it is part of the agreement that I signed when I took the mortgage and not even being bankrupt can prevent me from being liable for that shortfall. I explained to him that I would not be liable due to the bankruptcy - he said that I have been given incorrect information and that regardless of how they take possession they would be contacting me regarding any shortfall and would involve solicitors?
Once again I am feeling worried and low.
Please Help if you can
x

Sunnylooloo

Sorry you are feeling so low.

Can't help - but will bump you up so someone can

I think most people will say DON'T SIGN anything

xx

stevemarsh1976

hey Lisy keep your chin up and hope things work out for you. As for you house/mortgage as ive been advised by CCCS and on here dont sign a thing. Also im pretty sure any arrears will form part of your br tho someone else with more knowledge than me on these matters will confirm soon im sure.

diddly74

Lisy - I agree what the others have said and say DO NOT sign anything the mortgage company send you. From what I have read on here (and only from information gleened from here) is that once the house has been repossessed and sold on, any shortfall/arrears/secured loan then becomes unsecured and added to your BR.

As your home is an asset – once you are BR it becomes the "property" of the OR, who may sell it for the equity to repay firstly your secured borrowings and then with the equity left set that money against your other debts, paying off creditors of unsecured debts. If the house is in negative equity when valued the OR may offer you the option to buy back the Beneficial Interest or Equity in the house. The house then becomes "yours" again then and you are responsible for mortgage payments etc, but any further equity realised in years to come is yours.

So this means to me (and I am hope someone corrects me if I am wrong as I am very new to this BR lark and may have gotten the wrong end of the stick!)

· that once BR your house effectively “belongs” to the OR, they can sell it to realise the equity, or sell it to you if you can raise the money to buy it.

· If you “give” the house back or the mortgage company repossesses it and it is then sold on for a Loss, any secured borrowing/arrears then becomes Unsecured and is added to your BR (even if this happens after you have been discharged) as it is a debt originated prior to BR. Obviously if it is sold for more than what you owe – the OR will take the profit once all secure borrowings are paid.

I do not know (and hope someone can answer this one) what happens to any arrears you have built up prior to purchasing the BI from the OR??

I hope!!!! that I have got the information right, as my OH and I plan to “give” our house back too. But just to be sure the CCCS is only a phone call away and they should be able to answer any question.


D

fermi

lisy37 wrote: »

He told me that it is part of the agreement that I signed when I took the mortgage and not even being bankrupt can prevent me from being liable for that shortfall. I explained to him that I would not be liable due to the bankruptcy - he said that I have been given incorrect information and that regardless of how they take possession they would be contacting me regarding any shortfall and would involve solicitors?

That person is lying through their teeth. :mad:

As long as you do not sign anything acknowledging liability, then you are not liable for any shortfall upon the sale of the property.

Your ex OH may be, but not you.

To be honest you may as well let them get on with possession proceedings themselves.

Don't sign any possession forms that they send you that you are not sure of.

pinksnapdragon82

Hi Lisy,

like others have said - DONT SIGN!!!!
our mortgage was with Northern Rock (though I take the R and replace with C)!!! we offered our house for vol repo, but they said you have to sign blah blah blah, we wont reposses with out it blah blah blah - well we didn't sign and they did reposess, still waiting to hear from them about shortfall but as the hosue isn't sold, plus we are now BR i guess we wont.

i'd just wait it out and they will repo.
good luck xxx

lisy37

Thank you all for your replies - I thought the chap on the phone was lying but just needed it confirmed - for my own sanity - by you helpful guys on here!
X

diddly74

diddly74 wrote: »

Lisy - I agree what the others have said and say DO NOT sign anything the mortgage company send you. From what I have read on here (and only from information gleened from here) is that once the house has been repossessed and sold on, any shortfall/arrears/secured loan then becomes unsecured and added to your BR.

As your home is an asset – once you are BR it becomes the "property" of the OR, who may sell it for the equity to repay firstly your secured borrowings and then with the equity left set that money against your other debts, paying off creditors of unsecured debts. If the house is in negative equity when valued the OR may offer you the option to buy back the Beneficial Interest or Equity in the house. The house then becomes "yours" again then and you are responsible for mortgage payments etc, but any further equity realised in years to come is yours.

So this means to me (and I am hope someone corrects me if I am wrong as I am very new to this BR lark and may have gotten the wrong end of the stick!)

· that once BR your house effectively “belongs” to the OR, they can sell it to realise the equity, or sell it to you if you can raise the money to buy it.

· If you “give” the house back or the mortgage company repossesses it and it is then sold on for a Loss, any secured borrowing/arrears then becomes Unsecured and is added to your BR (even if this happens after you have been discharged) as it is a debt originated prior to BR. Obviously if it is sold for more than what you owe – the OR will take the profit once all secure borrowings are paid.

I do not know (and hope someone can answer this one) what happens to any arrears you have built up prior to purchasing the BI from the OR??

I hope!!!! that I have got the information right, as my OH and I plan to “give” our house back too. But just to be sure the CCCS is only a phone call away and they should be able to answer any question.


D

So have I got the right end of the Sticky stick then??? :T

shazbo

Hi Lisy, we have just had our house repoed, they also came out with the usual drivel, but none of it was true. We just let them take it to court because they wouldnt listen and refused point blank to speak to the OR, and to be honest i felt that if we had signed anything then we were giving them permission to sell the place for as little as they liked instead of actually trying to get a reasonable price for it.

They can do what they like now but we are not going to be paying them anything!!!

Tell them to go whistle the next time they ring