how safe is house with secured loan and mortgage

Mike_St_Helens

shameless-about-money wrote: »

Work the figures out

Blunt as usual.

silvercar

wallopadonkey wrote: »

we have a letter from first plus saying that it is agreed and the only sticky point is the wording of the deed as sent to our solicitor which they are working on

I'm glad thats going in your favour; sorry if I worried you.

wallopadonkey wrote: »

nearly all the debt in in my name only so is it possible for me to go br without my wife losing everything?

Yes, in fact your wife may be able to buy out the beneficial interest in your house after bankruptcy. This would mean you could keep your home, provided you kept up repayments. As the valuation is less than the (new) mortgage + secured loan, the Official Receiver would have no reason in keeping your share of the equity in the home - as there is none, your wife may be able to buy it off the OR for £1 + legal costs giving you your home. Not automatic but a distinct possibility. That low valuation will then work in your favour.

Post BR, with all the non-secured debt out of the way, you could concentrate on keeping up with the repayments on the mortgage and secured loan and the way forward currently looks brighter.

Hope it works out for you.

Sorry if I worried you with my earlier posting; still think it may be worth phoning FirstPlus and hurrying them along.

Mike_St_Helens

shameless-about-money wrote: »

Work the figures out

Hang on - there is every chance that they could keep the house. If neg eq is in place there are loads of routes to take. And you being a mortage advisor come all round expert should well know that !

wallopadonkey

Oldernotwiser wrote: »

Where on earth do you live??

82/week, not month. Doh!

shameless-about-money

The OP is wanting out of the house and the loan payments without involving his wife.

Yes, in negative equity he could keep the house.

What worries me is what he is intending doing with the cashback

Mike_St_Helens

shameless-about-money wrote: »

The OP is wanting out of the house and the loan payments without involving his wife.

Yes, in negative equity he could keep the house.

What worries me is what he is intending doing with the cashback

Over to you wollop

shameless-about-money

wallopadonkey wrote: »

82/week, not month. Doh!

If you could keep the house, would you want to do this?

Or are you just wanting out?

Are you paying the cashback onto the mortgage immediately, or are you going to pay your debts with it?

silvercar

If you increase the mortgage to clear your debts, bankruptcy won't help as all your debts will now be part of your mortgage and secured on the house.

If you use the cashback to live off, you will lose the money if you go bankrupt.

All I can see the increased mortgage doing is reducing your unsecured debts and replacing them with secured debt. This is a risky strategy.

Maybe I'm missing something...

I'll leave it to the experts to advise further. Good luck!

shameless-about-money

Silvercar - I agree with you totally on this

wallopadonkey

we were going to pay off a big chunk of the first plus loan and my wifes cc then use rest to bolster our income for the next few months