House reposetion

mug098

Hi all

Just a few questions really, After going bankrupt 5th aprill 2011 i have as probably noticed from my previous post decided to cancel all payments inc mortgage, loans etc.
I am 1 payment behind on the secured loan and the i.v.a so at the end of this month it will be the mortgage aswell.

Do i just get out of the house as quick as i can and keep hold of the keys till it gets reposessed or just post them to the mortgage comapany or oficial receiver ?

How long aprox does it take before i get kicked out of the house (single parent with 3 children depending on me).

Also what is the process involved with the house reposetion?

Hope that all makes sence

Many thanks

sizzler

Hi sorry, just logged on after work.

With ref to house the OR would not move you within the first year of BR.

Each Mortgage company are different and will take ussually at least 3 months.

If you are going to rent private save all your mortgage money you would of paid for deposit and tell the OR.

Have you had your interview with the OR yet?

With regards to loans and things you stop paying as soon as you are BR. Any debts are part of your BR.

More info required to advise sizz:)

mug098

ye had interview with the official receiver who also told me to save all the money for a deposit , he did not mention any thing about a year though

sizzler

yes the OR if you have a mortgaed property will allow you a year to sort your self out before forcing a sale.:)

Any help please ask away

kepar

sizzler wrote: »

yes the OR if you have a mortgaed property will allow you a year to sort your self out before forcing a sale.:)

Any help please ask away

So the 27 months doesn't apply in this case then?

sizzler

the 27 month rule is if you are keeping your house or trying to.

As the OP says they are stopping paying thier mortgage hence do not want to stay.

The OR will allways alow 12 months before they force a sale but the mortgage company will move quicker.

Please read threads hope this helps sizz:rotfl:

silvercar

kepar wrote: »

So the 27 months doesn't apply in this case then?

The 27 months you are refering to is for the OR to offer you to buy back the beneficial interest in the property.

It doesn't apply here because mug098 has stopped paying the loan and mortgage and so the property will be repossessed long before that.

mug098 there is no rule as to how long the mortgage lender or secured loan company will wait before repossessing. It could depend how busy they are. Some lenders work quicker than others. I would expect a minimum of 2-3 months before they even apply for a court hearing, though it could be 3 times that. Whether the secured loan people take action quicker could depend on how much money they will see when the property is sold - not much point going through the hassle and costs of repossession to find that all the sale proceeds go to the lender and they are left with nothing!

mel12

Do i just get out of the house as quick as i can and keep hold of the keys till it gets reposessed or just post them to the mortgage comapany or oficial receiver ?

If you're moving to private rented you can move out as soon as you've got a deposit and a place sorted (though it will probably take a few months for them to repossess as people have said, you could live there rent free for a bit).

The options are
- hand back the keys
- try to talk to the lender to agree an assisted sale (the house is put on the market, you live in it until its sold and help them sell it)
- wait till its repossessed.

Theres some information on the repossession process here. Ignore anything about you still being liable for the mortgage shortfall - it will be included in the bankruptcy.


Make sure you tell all the utilities (gas, electric etc) and council tax the house is no longer yours so you're not liable for any more bills.


If you need to apply for the council for housing then there are complicated (and stupid IMO) rules around what counts as making yourself intentionally homeless, so you'd be best giving shelter a call to get their advice about what to do.

kepar

Please read threads hope this helps sizz.

I am but where does 12months come in, we were told that as soon as there was enough equity he would give us 3 months to move out. Where did you get 12 months from. When we sent the keys back for a VR, the mortgage company took around 4 months before they put the signs up and changed locks etc.

fermi

kepar wrote: »

Please read threads hope this helps sizz.

I am but where does 12months come in, we were told that as soon as there was enough equity he would give us 3 months to move out. Where did you get 12 months from. When we sent the keys back for a VR, the mortgage company took around 4 months before they put the signs up and changed locks etc.

I don't think there is a 12 months limit they they have to give.

It's simply that once 12 months have passed, if push comes to shove, the courts are likely to consider that sufficient time has passed for an order of sale to be made.

33.186 Exceptional circumstances

Under section 335A, after one year has passed since the vesting of the bankrupt’s estate in the trustee, the court assumes that, unless there are exceptional circumstances, the interest of the bankrupt’s creditors outweigh all other considerations. The rights of creditors are also considered paramount to any matrimonial/civil proceedings home rights and to the rights of occupation of the bankrupt after the end of the period of one year from the appointment of the trustee [Note 2].

33.187 Examples of exceptional circumstances

The courts have largely taken a narrow view of what constitutes exceptional circumstances. Family hardship caused by bankruptcy is not considered an exceptional circumstance. The hardship suffered by a wife and children of a bankrupt when the family home is taken is deemed distressing but not exceptional [note 3]. However, more recently the courts have shown a greater willingness to consider family hardship when deciding what constitutes ‘exceptional’ under section 335A, 336 and 337. Exceptional circumstances were found to be present where the illness of a wife was sufficient to persuade the court to refuse an application for sale [note 4].

Mental illness of a spouse or civil partner can also be deemed an exceptional circumstance [Note 5]. The court has also found that a bankrupt’s wife’s interest in looking after her elderly terminally ill husband was an exceptional circumstance [note 6]. Exceptional circumstances were found where the bankrupt’s wife was disabled and in poor health. The court ordered the sale of the property to be postponed until either the wife chose to vacate the property or died [note 7].

The above examples demonstrate that certain types of family suffering are considered as exceptional circumstances but generally the trend is to favour creditors’ rights without regard to ordinary family suffering.

saff4x4cosworth

i would not rush or panic about the house ours was repossesed 12 months after we stopped payin, have you thought about Housing society we did and had a new house before ours was taken, the mortgage company will send you loads of letters we just ignored it and it seemed to delay the process, you will be given plenty of notice of the repo date so like i said dont panic....