Was bankrupt but kept house..remortgage advise pls

Richard_S

shaunc196 wrote:

Wow so I am really up 5448 creak without a padel

Shaun,

Why don't you ring CCCS and ask them for advice and the options open to you, they're telephone based so you won't need to go into town.

Richard

tight_jock

Sooty0404 wrote:

Worry - Don't Worry!......

.

That , Sooty , is a quality post mate. Glad to have you around with good, sound advice.

:beer:
TJ

tight_jock

EDIT - IP posted twice OOPS!!

shaunc196

Richard_S wrote:

Shaun,

Why don't you ring CCCS and ask them for advice and the options open to you, they're telephone based so you won't need to go into town.

Richard

I filled in the form, and waiting a call from them. CAB visit is really to find out the legal side of things regards to housing and things.

Sooty0404

Shaun

I've been thinking.....

You only have a £50k first mortgage against a £100k house and that is small by todays standards. Why don't you try and buy off the second loan. For example: offer your second lender £40k to p*** off out of you life forever. Explain your problem and use the threat of bankruptcy as a lever. Start at £25k and let them 'beat you up' to £35-£40k. Think about it - if they force you to sell for £80-90k, pay off the first lender plus the selling fees, how much will they end up with? Look at it from their point of view - a guaranteed £40k now or the possibility of £69k some time in the dim and distant future. I bet they'll take it. If so, up your first mortgage to as much as you can get in respect of the house value (should be about £95k) - give the wife a few quid out of this if you want to.

What are you left with - a house with no equity (no difference there), a £90-95k debt secured against it (as opposed to £119K now) and an appreciating asset (as opposed to one that's going down the drain if someone repossesses)

Once that is all in place you can decide to go bankrupt to get rid of the unsecured debts and as long as you can service the mortgage you are safe. The OR will not force a sale because there is no money to be had and the mortgage company will not repossess because you are not in arrears. Bankruptcy makes no difference to them because their debt is secure. As long as you pay they will not bother you.

As long as you buy out the OR you can enjoy the gain when your house increases in value (and it will).

Worst case scenario - one mortgage - no other debts.

Another small step towards solvency for me

A store card collection agency called me today asking for full settlement of a £251 debt. I told them I could not pay as I was skint. They immediately offered to settle in full for £200. I asked for them to fax this in writing which they duly did and I called back to say I had borrowed the money and paid them. Another one off my list.

Although your numbers are much larger the principle is the same. Whether you drive a Ferrari or a Fiat they all work in much the same way. To recoup £40k to reinvest in someone else is a much better prospect to a lender than holding out for £69k which they may never see. Don't forget - they are borrowing that money from somewhere and paying interest too!

Give it a go..... what have you got to lose? I'm sure everyone on this forum would love to know how you get on (especially me)!

Richard_S

Sooty0404 wrote:

Shaun

I've been thinking.....

You only have a £50k first mortgage against a £100k house and that is small by todays standards. Why don't you try and buy off the second loan. For example: offer your second lender £40k to p*** off out of you life forever. Explain your problem and use the threat of bankruptcy as a lever. Start at £25k and let them 'beat you up' to £35-£40k. Think about it - if they force you to sell for £80-90k, pay off the first lender plus the selling fees, how much will they end up with? Look at it from their point of view - a guaranteed £40k now or the possibility of £69k some time in the dim and distant future. I bet they'll take it. If so, up your first mortgage to as much as you can get in respect of the house value (should be about £95k) - give the wife a few quid out of this if you want to.

What are you left with - a house with no equity (no difference there), a £90-95k debt secured against it (as opposed to £119K now) and an appreciating asset (as opposed to one that's going down the drain if someone repossesses)

Once that is all in place you can decide to go bankrupt to get rid of the unsecured debts and as long as you can service the mortgage you are safe. The OR will not force a sale because there is no money to be had and the mortgage company will not repossess because you are not in arrears. Bankruptcy makes no difference to them because their debt is secure. As long as you pay they will not bother you.

As long as you buy out the OR you can enjoy the gain when your house increases in value (and it will).

Worst case scenario - one mortgage - no other debts.

Another small step towards solvency for me

A store card collection agency called me today asking for full settlement of a £251 debt. I told them I could not pay as I was skint. They immediately offered to settle in full for £200. I asked for them to fax this in writing which they duly did and I called back to say I had borrowed the money and paid them. Another one off my list.

Although your numbers are much larger the principle is the same. Whether you drive a Ferrari or a Fiat they all work in much the same way. To recoup £40k to reinvest in someone else is a much better prospect to a lender than holding out for £69k which they may never see. Don't forget - they are borrowing that money from somewhere and paying interest too!

Give it a go..... what have you got to lose? I'm sure everyone on this forum would love to know how you get on (especially me)!

Sooty,

Sound advice (again) excellent post - I think the chancellor could do with some of your advice in a years time :rotfl:

Richard

Sooty0404

Thanks Richard

I've only just discovered this forum and am enjoying it tremendously. Hope my long winded posts aren't boring you all.

shaunc196

Yet again Sooty, I have had to say "thankyou" to you. Your advice is gold, and really clears things up. I never EVER thought of negoitating with the charge, as I always thought of being caught by the short and cirlies, as at the end of the day, I can afford both payments, its just the council refuse to house the wife, as this is the best solution for her, and me and the kids

They would rather see her in a house for 6months, only to loose it, and go into arrears and then get bankrupt, how crap is that? And for me, knowing that people might knock on her door, with my children there, its aweful.

I know this is a "special" case, as usually, people split, and hand in keys, but we are trying to help each other out. We are not on the lets screw this person, that person up. We are trying to sort this out, for the kids, so we are both happy. Its the council that are playing hard ball, and to me, thats unfair.

I will let you know tomorrow night, as I have finally secured work from home and going down CAB first thing in the morning.

I must say this though, my boss, has been a total god send. Small IT department, only me and him, and he has carried me for almost 2wks now, and well, to me, not alot of people you do that. He is a total angel
Also Sooty, best done by letter or phone call? I would hate for the rug to be pulled form under my feet, if I can afford it and save all that hassel

One thing is for sure, because of the help, support, and advice I have recieved here, I will let everybody know how much help they gave me, and also, my personal progress

shaunc196

Well just got back from CAB. They have advised me NOT to go the BR route, as they would more then lightly reject it, because I can afford to keep the repayments up. The wife can have me removed from the property, but only if she has a valid reason ( and she hasn;t got one ) and this would be only a temp measure. If I am removed, then get straight onto Mortgage and Loan company, and advise them, and stop paying them. I am going to look into your suggestion sooty, its just getting my head around the legal jargon ( not very good with words me ) and what to do first.

CSA, well they will catch up with me, and sting me, as the new rules DONT include mortgage payments or housing costs, although they used to. Best thing here, is to make payments to the wife, until CSA catch up so this will hold off the arrears. As for the wife, I feel sorry for her. She has 2 options. Move to Families. Get a Job and rent privately.

CAB advised me to sit tight, pay people as per normal, and get myself to the Dr's and they have also pointed me to Relate ( appointment next week ) to help with the emotional side.

Everybody on here has been FANTASTIC and I cannot thank you all enough.

Best wishes to one and ALL.

Sooty0404

Just had a letter today from a major credit card company (debt £2500) gratefully accepting my £6.62p per month offer and agreeing to freeze interest after the second payment. Agreement valid for minimum of a year.

When you have them by the b****cks their hearts and minds will follow!