House, mortgage, etc

ilovebanksMCMLXXXI

debtinfo wrote: »

I think this is wholly unrealistic, i have never seen a bank repossess if the mortgage is up to date, i dont think they actually can, you need to be in breach of the terms and they would need to get a repossession order which i am fairly certain a judge would not grant.

Please be careful what advice you give with a quote like that - do not underestimate what becoming bankrupt can do whether a person is up to date on their agreements or not.

The original post clearly states the mortgage is currently arrears even though there is a way of repaying them so the agreement has already been breached.

If you declare yourself bankrupt you can be forced to sell your assets. The house may be in neg eq but it still remains an asset and may have to go.

When you declare yourself bankrupt all your assets (except day-to-do living items such as a cooker etc) become bankrupcy assets and even if you were up to date on your mortgage it would still be at risk.

Ultimately, bankrupcy is done on its own individual merits and elements can be different for different people so it's difficult to give an exact answer on "will you keep your home?"

That said, the piece of advice given above is incorrect because the situation certainly is not "wholly unrealistic" and even if a mortgage payer was 100% up to date on their agreement, if that property becomes a bankrupcy asset it is at risk - that is a fact.

skylight

ilovebanksMCMLXXXI wrote: »

Please be careful what advice you give with a quote like that - do not underestimate what becoming bankrupt can do whether a person is up to date on their agreements or not.

You sound reasonably knowledgeable.

However, everyone here has either been through the BR proceess or has worked in it (Your circumstances unknown). No-one here underestimates what happens in BR; both actually and emotionally. BR is horrific and everyone gives there best advice on what is likely to happen.

A property that has arrears that are being paid off PLUS has no equity is not likely to be taken. The OR has no interest in a dead duck. If you renage on the agreement with the mortgage provider to repay those arrears then its up to them if they want to repossess or not. If they decide to make a repossession, that is ultimately up to the court judge. The words "not likely" does not imply that is what will definitely happen, but its based on many years worth of knowledge from a number of sources. Therefore it is wholly unrealistic.


Oh, and lastly, something that has a huge amount of money owing on it that far outweighs its worth is not an asset. It's a liability.

somadjoe

This had made me even more confused.

I'm worried that I'll go bankrupt and we'll lose the house
My other worry is that I go bankrupt and we keep the house but interest rates go up and as I wont be able to get a fixed rate we'll lose the house and have to go bankrupt again.

I met with CAB today and they said that if I can get a job in the next few weeks they can possibly put something together to avoid bankruptcy but I need a consistent income to do this.

My head is just in bits at the moment. I was supposed to make payments to Citi and Barclaycard yesterday. I called both and told them I was unable to pay and was seriously considering bankruptcy. Both have offered to look at lower rates and agreed to hold until 2nd July.

It was my little ones birthday yesterday and after they'd all gone to bed I felt as though I was standing on the edge of the abyss just waiting my turn to fall in.

skylight

How little equity is there? Could you sell up and get something smaller - at least it would reduce your mortgage and ease the pressure. (Before BR though).


You are right with the conundrum. The OR is likely to let you keep it, but mortgage rates are going to go up (they cannot possibly fall, so will never get cheaper for you) and you may find that a huge problem there. But this is one thing no-one here can answer for you.


It's just a house. Bricks and mortar. Your well being and your family are far more important. Would life really be that bad if you let it go?? Plan for the worst and hope for the best.

somadjoe

Thanks Skylight

We've no equity, we're in negative equity and my income is so inconsistent I wont get a mortgage.

At least my insurances are up to date to clear everything for the family should anything untowards happen to me.

I realise IP can only deal with the here and now but the different advise you get from different sources just ends up making everything more confusing.
My wife goes back to work in September(teacher) so if we could hold out we'd know that from October the mortgage and household bills are covered.
It's just one big mess