bankruptcy re repossion

deadinthewater

Hi again all
another question which has prob been answered b4 so sorry if its old ground for you
if and when i go BR but stay in mortgaged house how long roughly will it be b4 they repossess and evict us
the reason 4 this question is that once i have saved up for us both 2 go BR i then have to save 6 months advanced rent for rented accomadation
many thanks

Sunnylooloo

Hi

don't worry about asking a question that has been asked before.

Not sure of the answer but will bump you up - as I would be interested in knowing that myself

LL

deadinthewater

hi sunnylooloo thanks for reply
sorry to seem a bit dim but what is Bump still learning all the jargon

skylight

Are you in arrears? Have you stopped paying the mortgage?

BR and repossession dont always go together, but it depends on circumstances.

If, however, you are sure a repo is what you want, you have several months usually. Anything from 3 to 12! The golden rule is NEVER SIGN ANYTHING AFTER YOUR BR. Because many repo agreements have additional clauses that mean that you will be liable after BR for the shortfall.

Sunnylooloo

deadinthewater wrote: »

hi sunnylooloo thanks for reply
sorry to seem a bit dim but what is Bump still learning all the jargon

O sorry if you bump (or someone adds a post to your thread) it takes your thread back up the board - so more chance of someone seeing it.

themull1

My friend went br and they stayed in their house because it had negative equity. They didn't have mortgage arrears.

deadinthewater

ok thanks for that sunnylooloo i understand now

deadinthewater

hi skylight thanks for that
we are 1 month in arrears but there is about 20k equity in house which i know will go to OR for distribution amongst creditors dont have prob with that as debts are approx 43k unsecured and 84k on mortgage
it was the fact that as there is equity would they not force the sale asap to get their money back in case the market gets worse which it prob will

skylight

Its a double pronged attack here with a repo/sale. The OR will want the equity and with lots they are likely to force a sale - but the mortgager is likely to repo if you stop paying the mortgage payments on it. Are you SURE there is £20k of equity? Have you checked against house prices in your area and what they have sold for etc.

If you REALLY want it gone then stop wasting your money and stop paying the mortgage; you need to be really, really sure though as once you stop paying its difficult to go back if you change your mind.

Time scales can be an issue here. As mentioned, it can be a quick repo or a long one. You are "liable" for all costs until the place is sold on, not repo's. Like council tax/utilities etc (you can get a 6 months empty property exemption from council tax). You could move out before BR, hand the keys back and rent. Or live in the property paying no mortgage and wait for them to repo going BR before or after; but then you will find it difficult to rent with a BR on your file if you went BR after.

There are a lot of things to consider.

deadinthewater

thanks skylight
yer the equity is about rite give or take a grand or 2 have found letting agent willing to take us as BR or b4 but as my credit file shot to pieces will need 6mths advance rent then do vol repo was just hoping to have enough time to save up to get deposit obviously b4 BR as will be difficult after due to OR taking control
does that sound rite?
make sense to me but not sure of the implications as to having to explain to OR where all that money went ie 1200 for BR and approx 3K for deposit

silvercar

Do you definitely want to give up the house? If you want to stay in the house, you would need to continue paying the mortgage and plan on buying back the equity in the property. It is the market value of the property at the time it is bought back, so the big question is how much equity will be in it at that time.

If you definitely don't want the property and are definitely (both) going bankrupt, then saving the mortgage payments for rent in advance is probably the safest option. Timing is crucial as you don't want to be evicted before you have found a rental.