Update to discharged bankrupt can't afford mortgage

taffalumpdog

Hi I'm hoping someone has some advice for me. I went bankrupt in May 2009 (discharged about 6 months later) due to large amount of unsecured credit, however decided to keep my house as could afford the mortgage and couldn't face the thought of having to move out as well as everything else. I was allowed to do this as there is probably at least 50k negative equity in it. Anyway fast forward to now and my situation has changed somewhat, I've had a baby and our household income is a lot less. (house in my name only, not husbands). We are struggling to meet the repayments currently and if interest rates go up at all (which is inevitable at some point) there is no way we'll be able to continue to. Added to this we have had a lot of anti social behaviour in the area recently which is now also being directed at the house which I can't cope with anymore. I feel the only solution which is best for us but most importantly our little boy is to move into privately rented accommodation away from this area.

The main questions I have are:
1) What do I do about repossession? I need to save up some money to pay for rented property and think that due to bankruptcy may need to pay 6 months rent in advance. I have only paid token payments to mortgage company this month - do I continue to do this or pay nothing at all to save up quicker?

2) How quickly will the lenders (mortgage company and secured loan) take me to court if I don't pay or will they send round baliffs?

3) How will this be viewed by the OR as it looks like I'll have to go bankrupt a second time due to massive shortfall?

I'm sure that there are a lot of other things to consider but can't think of them now.

Initial post above:

Just to let people know I spoke to the OR today who was very helpful and basically said that as they still have a charge over the house the mortgage shortfall will fall under my original bankruptcy! This is a major weight off my mind. I have also viewed a property and my Dad will act as guarantor so all being well we should be able to move very quickly. I should have let the house go initially but have an emotional attachment to it. (though this is going due to the amount of trouble we've had in the area over the past few months)

In relation to repossession he suggested best way would be to stop paying mortgage and let myself be repossessed (though couldn't say this 'officially' and suggested CAB for further advice). I have a neighbour who I know may be interested in buying house but as weren't sure whether I could end up in trouble if mortgage company etc suggested that I had sold under market value etc and have basically been told not to go down this route as he agreed this could be an issue. I am going to get further advice re: repossession as not too sure on best course of action.

Thanks again for everyone's expertise and advice!

MicheH

Aw that is good news.. just what ever happens whether you allow the mortgage company to repossess it for you or you push for it taken off your hands remember never to sign a thing with the mortgage company.

Also when you move out into rented let the council know. You'll get a 6 month exemption from paying council tax on the property that is empty. Here's to a speedy 'getting rid' I know it's a horrible thing to have to face up to but once the decision has been made you just want to get it all over with.. if you're anything like me!

Best wishes

BB&B

Thank you for letting us know what happened, and I be sorry for assuming you had bought back the BI - Next time I'll keep me gurt cakehole shut :silenced: until I've checked

Tim

MicheH

BB&B wrote: »

Thank you for letting us know what happened, and I be sorry for assuming you had bought back the BI - Next time I'll keep me gurt cakehole shut :silenced: until I've checked

Tim

No don't! I learned loads

TheCat_2

Taffalumpdog,

Thanks for the update it looks like we'll both be able to leave our negative equity behind.

I emailed my OR to ask basically the same thing and got an 'out of office until 4/1/11' auto reply.

Although I could've done with a pre-Christmas response, I see that as possibly a good thing as I get my AD on 18/1 on they'll only have two weeks to deal with my email and no time at all to revisit my SoA (:

Richie