Warning about property from 1st Jan 2011...

eklynne

silvercar wrote: »

So has no-one paid the mortgage since Feb 2009! and the lender not repossessed? Even with all that equity in it??

What is the £9320? the money to be returned to you if the equity is used to clear your debts? Does that mean the bankruptcy is cleared?

Hi, the £9320 was my total debt when I was sequestrated plus, I assume, the fees payable to the AiB.It was council tax arrears of £8000 I was sequestrated for. The last payment made to the mortgage was in December 2008, and yes, it's still not been repossessed. I know, it's completely bizarre. So, I'm just wondering if the house sells, and the AiB take the £9320, will any excess go back to me or will the AiB take that too?

silvercar

In theory you would get the money back over and above the amount needed to clear your debts and the OR fees. In practice the outstanding mortgage arrears may account for a chunk of it.

Unbelievable that the lender didn't repossess. Just think you could have lived there rent free until now!

Did you hand the keys back to the lender? So is it a formal repossession? Or did you hand the keys to the OR? Was it cheaper to rent than pay the mortgage?

eklynne

I handed the keys over to the OR. I did not want to keep the house as it was jointly mortgaged with an absconed ex (7 years) and I was glad to see the back of it to be honest. It turned out much cheaper for me to rent as I received a small amount of HB as I am a student and single mum. I was paying £380 a month mortgage compared to £175 rent now.
I think the non BR absconded ex might have something to do with how long it's all taken. My OR told me that any correspondence from the mortgage co would be dealt with by him (he was a lovely guy!) and that I should just move on with my life, which is what I have done. I never thought I'd get anything out of this at all, but now I'm starting to think I might. How strange things turn out...:o

silvercar

eklynne wrote: »

I handed the keys over to the OR. I did not want to keep the house as it was jointly mortgaged with an absconed ex (7 years) and I was glad to see the back of it to be honest. It turned out much cheaper for me to rent as I received a small amount of HB as I am a student and single mum. I was paying £380 a month mortgage compared to £175 rent now.
I think the non BR absconded ex might have something to do with how long it's all taken. My OR told me that any correspondence from the mortgage co would be dealt with by him (he was a lovely guy!) and that I should just move on with my life, which is what I have done. I never thought I'd get anything out of this at all, but now I'm starting to think I might. How strange things turn out...:o

Makes more sense now. The non bankrupt absconded ex would be entitled to half the equity on the simplistic approach, so that may delay the OR in dealing with it. Still surprised the lender didn't just march in and repossess, but then there may have been conversations between the OR and the lender. The absconded ex would own half the equity so once the mortgage and arrears are cleared, half the equity should be used by the OR to clear your bankruptcy debts and the OR charges and the rest returned to you. I suppose someone must be in touch with the absconder - or they will be when there is a pot of gold waiting for him!

The bankruptcy has done you a favour in another respect. Had you not been bankrupt and the OR taken over the beneficial interest in the property, I don't think you would have been eligible for HB as the rules on equity in property would mean that either you are assumed to be getting an income from the equity or that you have it to bolster your savings pot. Either way it would effect your HB claim.

Glad you are getting on with your life now.:)

chinamonkey

chinamonkey wrote: »

hmmm intersting,....I hit the 2yr 3 months satge on 23rd Dec 2010....having had our mortgage statment and worked out repayment fees on our fixed rate mortgage... we would have about £8k in equity...we have heard nothing yet from the OR...would it best to keep quiet and hope for the 3 yr marker to go past and have it all vested back or say something?...

any advice anyone... its now been 2 yrs 7 months and still not heard back......

DON79

Well I have just called RTLU about my house after being told to call back around now to check that the property was being re-vested to me. It really annoy's me just how vague the person dealing with my case is - they don't know yet if it has been done, they don't know when the decision will be made and now they don't know when I should call back to chase it up and they don't know if the last valuation I had done still stands! grrrrrrrrr! so frustrating. She eventually said I should call back in one month to chase it up again. If in one month, still nothing has happened, then I am going to keep my head down and wait for the three years to come around I think - only another 8 months - been waiting this long already so what is another 8 months lol!

debtinfo

do bear in mind that they have just lost 25% of all their staff in the last month

Amanda-Wright35

Does this mean in laymens terms that people going through bancruptcy can stay in their homes for 2 years and 3 months following applications being filed.:j

debt_doctor wrote: »

Hi all,

The Insolvency Service are amending the way property is dealt with in BR. (Thanks to fatbelly who alerted me to something going on, but not sure what it was)

I have a document in front of me from an 'insolvency friend' that says property, even in neg equity, shall not be disposed of (ie dealt with by the IS) until 2 years and 3 months, were it will be re visited.They appear to be hoping that a property will rise in value during this time.

This is to be 'the norm' but with discretion if the property also has further charges after the mortgage.

There are other other issues too (some helpful, re not requiring an 'official valuation' in some cases)

I'll pass it to Fermi to get it posted up asap.

DD

kepar

If they can afford to pay the mortgage and any secured loans on the property yes. It will not get looked at until the 27 month point.

Amanda-Wright35

Thanks Kemar"!

Still a little confused about this whole thing though.
I have so much debt, in that we owe a huge interest only mortgage and 2 secured loans on top. Amoungst that we are £1900 in arrears with the council tax, as i lost my job and my husband is self employed. It came down to weather i pay the council tax or feed my family. Ive looked at benefits but my husband earns too much. Although this goes towards paying the mortgage and loans with little left over.

I now how the bailiffs threatening to levy my belongings and i cannot afford to come up with any money to give them either. The whole thing has been really distressing so much so that i cant sleep of a night.

My husband and i have talked about going bancrupt, i am an ex estate agent and know that my property is not worth more than the mortgage and loans. Where does this leave me. Will our mortgage company reposess us, or will the debt go towards the OR. Our credit is beyond bad and i just dont know what to do for the best. I have two children and live in a small village where everyone knows your business. I do not want them to suffer for my bad money decisions.

Please Help......:(