house and BR

bobblebot

I have decided to take the plunge and go BR. I have 40 K of debt left through a distastrous divorce where i settled out of court and took on board 50% of ex's debt, oh how I wish I'd known then what I know now. I have the 4 kids living with me, which i don't regret but My income has now decreased as working FT and travelling 4 hours a day in a highly stressful job made me ill. All my savings have now gone and the reality is I am seriously short and a DMP would take 22 years to pay off and IVA is not feasible.
I had my house valued at £165000 but mortgage is 167000 so neg equity. i realise that OR will probably let me keep the house as no equity but I don't think I really want to as it is too small for my family and will be a difficult property to sell realsitically in the future also when my mortgage discount rate is lost in 2 years to 900 I won't be able to afford..
The good news is I am getting married to a lovely bloke but He is a student and only earns 6K so the possibility of him helping me is impossible and it isn't fair anyway to ask him as they are my debts. I have come clean and thankfully he loves me enough to deal with my bankruptcy-thanks god!
We would also like to have children so the house would not be feasible and safe for little kids, its lots of stairs. my question is what to do...The mortgage on this property is killing me £800 and that's only interest only. What should I do...I know we will have to rent as we won't get a mortgage until money is better and he can apply in his name only.
Should I look for somewhere to rent now?..my BR date is 20th June. I have seen a property at £650 which is in same area, bigger with a garden for kids which is ideal. What would happen if I stop paying my mortgage and moved now...would this be better or would this look bad to the OR and BR?? If is stop paying my mortgage with the help of a friend i could proably just afford the deposit its priovate so no credit check.
Any advice appreciated.

Cheers

gettingitsorted

bobblebot wrote: »

I have decided to take the plunge and go BR. I have 40 K of debt left through a distastrous divorce where i settled out of court and took on board 50% of ex's debt, oh how I wish I'd known then what I know now. I have the 4 kids living with me, which i don't regret but My income has now decreased as working FT and travelling 4 hours a day in a highly stressful job made me ill. All my savings have now gone and the reality is I am seriously short and a DMP would take 22 years to pay off and IVA is not feasible.
I had my house valued at £165000 but mortgage is 167000 so neg equity. i realise that OR will probably let me keep the house as no equity but I don't think I really want to as it is too small for my family and will be a difficult property to sell realsitically in the future also when my mortgage discount rate is lost in 2 years to 900 I won't be able to afford..
The good news is I am getting married to a lovely bloke but He is a student and only earns 6K so the possibility of him helping me is impossible and it isn't fair anyway to ask him as they are my debts. I have come clean and thankfully he loves me enough to deal with my bankruptcy-thanks god!
We would also like to have children so the house would not be feasible and safe for little kids, its lots of stairs. my question is what to do...The mortgage on this property is killing me £800 and that's only interest only. What should I do...I know we will have to rent as we won't get a mortgage until money is better and he can apply in his name only.
Should I look for somewhere to rent now?..my BR date is 20th June. I have seen a property at £650 which is in same area, bigger with a garden for kids which is ideal. What would happen if I stop paying my mortgage and moved now...would this be better or would this look bad to the OR and BR?? If is stop paying my mortgage with the help of a friend i could proably just afford the deposit its priovate so no credit check.
Any advice appreciated.

Cheers

Hi and welcome

i would look for somewhere to rent now also contacting one of the free advice givers ie ,payplan or the cccs or your local CAB would be advisable aswell.

bobblebot

Thanks for your speedy reply. I have spoken to CCCS and have been advised to go BR. If I stop paying the mortgage, which i would be doing this month anyway what would happen then with the house-would the bank repossess it eventually and what would the OR make of this?? Would it be ok to say I had to because the rental was cheaper and more affordable?
Thanks again

gettingitsorted

bobblebot wrote: »

Thanks for your speedy reply. I have spoken to CCCS and have been advised to go BR. If I stop paying the mortgage, which i would be doing this month anyway what would happen then with the house-would the bank repossess it eventually and what would the OR make of this?? Would it be ok to say I had to because the rental was cheaper and more affordable?
Thanks again

There is a poster whos situation was very like yours i will find it for you .

gettingitsorted

found it have a read it should help you alot

http://forums.moneysavingexpert.com/showthread.html?t=407394

bobblebot

Thanks so much, you guys are amazing

gettingitsorted

Your welcome,anything else just ask away

morveryn

We considered handing back our keys / letting the mortgage company reposess when hubby when BR last July. After we'd thought about it and looked into it we discovered that if the mortage company sell your house for less than its worth you are liable for the shortfall.
Also in most cases when a house is reposessed you have pay any court costs.

Obviously eveyones situation is different so this may not apply to you, but I thought you might like to be aware of it.

allofadither

morveryn wrote: »

We considered handing back our keys / letting the mortgage company reposess when hubby when BR last July. After we'd thought about it and looked into it we discovered that if the mortage company sell your house for less than its worth you are liable for the shortfall.
Also in most cases when a house is reposessed you have pay any court costs.

Obviously eveyones situation is different so this may not apply to you, but I thought you might like to be aware of it.

Wow, how awful. I'm surprised that as a BR you would still be liable for the shortfall. (I rent so this is not a problem for me). I would have expected the debt to be 'written off' with all the others, otherwise I don't understand the point of going BR if you might still have this shortfall debt hanging over you with no prospect of it getting repaid. It seems awfully unfair. Is this just the case if you hand over the keys? Or does it happen if the mortgage company repossess? At the end of the day the result is the same...you still lose the house.

bobblebot

Dopes anyone know the answer to the above-will I be liable for court fees and negative equity to mortgage company if I go BR?? I want to move out and am evebn thinking of relocating to cornwall-as always wanted to live there and now seems actually perfect time for fresh start.
Does anyone know if I will be made to pay the mortgage company if they repossess and sell at a loss even if I am BR??
Thanks in advance

gettingitsorted

Hi bobble , you could email the insolvancy service and find out the answer to your question as its something we dont know alot about .there website is

https://www.insolvency.gov.uk