BI in property - What is 'Next Step'?

Mike_St_Helens

Sooty0404 wrote: »

Hi Rog

Sorry to hear about your situation. In this case the OR is in the same position you would be if you and your wife split up. One of you could force the other to sell the house to release the proceeds.
They do not see that your wife is being made to suffer as she will receive her full share of the net equity (although we all know the opposite is true).
If you let them take a charge over the property you will almost certainly regret it. If they apply statutory interest at 8% on the figures you are suggesting it will be a KILLER.
8% on £70k is £5600 so after the first year your debt will be £75,600. Interest on this figure is £6048 so after Year 2 you are over the £80k mark and rising. With house prices rising at approximately 5% per annum, and assuming they continue to do so your equity, or more importantly your wife's equity will be eaten away before you know it.
Remember one of my first posts where my brother borrowed £40k and ended up owing £100k 9 years later.
You have to get the OR out of your life NOW. With the amont of equity in your property the loan to value aspect is your secret weapon. Your son/wife could walk into any Building Society and get a Self Cert mortgage easily. Go for an interest only mortgage for now to keep the payments down if you have to. Extending the mortgage period may also help to keep things affordable.
Once you are rid of the OR you only have to deal with the lender if things go wrong and they are usually far more reasonable. Plus it would add at least a year to your 'breathing space' if they decided to get you out. You also then have the opportunity to sell and downsize if neccessary.
If your wife refuses to consent to the OR's request to vacate he will have to evict her. This will be both costly and time consuming (and he knows it).
His job is to realise your assets for the best price possible in the shortest space of time so start off by offering him £50k. Its my guess you won't have to do too much negotiating before you reach agreement. Then get your wife to refinance in her name and you are left with 1 house + 1 mortgage + 1 lender - a far easier situation to handle in your circumstances.
You have to remove the Sword of Damocles (aka the OR) from over your head and the sooner the better. Good Luck.

Sound advice sooty - I like reading your posts.

So, If my 'letter' comes shortly to tell me to buy my BI, realistically right there is neg eq. Would the OR chuck me out if I 'didnt' want to buy it and the house would revert to me after 3 years ?

I just dont know what to do, one day I love my home and love the fact its mine.. then the next I think, stuff the OR they can have it... Its very hard on my tiny brain. :cool:

Rog & Sooty are you coming to the meet on Sat?

Mike_St_Helens

Jane_East_Yorks wrote: »

Sooty,

You sweep me off my feet sometimes with your faultless rational logic and poetic eloquence. You've made all Rog's problems seem as simple as you did mine.

Jane xx

Hi Janey ! How are you today?? Im suffering from last nights 'activities. Im not gona drink all week so im sparly eyed for Sat !

Jane_East_Yorks

Mike_St_Helens wrote: »

Hi Janey ! How are you today?? Im suffering from last nights 'activities. Im not gona drink all week so im sparly eyed for Sat !

Hi Mikey,

I'm fine ty and now I'm being a hippocrite cos I chucked my o.h off the computer to go and cut the grass, we're going out for tea and I don't want to be late. We're having a week of early nights to get over the last couple of months and I want to do some catching up at the gym.

Bi for now,

Jane xx

silkglade

rog2 wrote: »

Feeling brighter by the minute - Thanks.:beer:

Hi Rog, glad your now feeling happier about things.

I really hope you find the solution that's best for you and your family.

Sooty - Goodness you have a very excellent head on those shoulders. You really have the information that's needed here.

God I wish this place had been about 9 years ago - when this happened to us we were made to feel like scum, even by my family - though my dad hadn't been in my life since I was 16. My mum still throws it in my face now all these years later.

We felt totally alone and like criminals that had a nasty secret to hide. I still feel ashamed now about it.

But we had no other option. we have only within the last year got back on our feet, as back then it lasted 3 years when we went bankrupt. also upon checking my credit file with experian and equifax at the begining of last year barclays had not taken off my barclay loan or cc's When i checked they were still been marking each of them with a non payment default for the last 3 years - even though they had been paid in full by the OR from the sale of our house. spoke to equifax and got a letter to say it had been removed - only to have them put it back on the following month. but it is sorted now :T

*** Warning to all of you that once your released from bankruptcy to get your credit reports and make sure they are correct ***

Mike_St_Helens

silkglade wrote: »

Hi Rog, glad your now feeling happier about things.

I really hope you find the solution that's best for you and your family.

Sooty - Goodness you have a very excellent head on those shoulders. You really have the information that's needed here.

God I wish this place had been about 9 years ago - when this happened to us we were made to feel like scum, even by my family - though my dad hadn't been in my life since I was 16. My mum still throws it in my face now all these years later.

We felt totally alone and like criminals that had a nasty secret to hide. I still feel ashamed now about it.

But we had no other option. we have only within the last year got back on our feet, as back then it lasted 3 years when we went bankrupt. also upon checking my credit file with experian and equifax at the begining of last year barclays had not taken off my barclay loan or cc's When i checked they were still been marking each of them with a non payment default for the last 3 years - even though they had been paid in full by the OR from the sale of our house. spoke to equifax and got a letter to say it had been removed - only to have them put it back on the following month. but it is sorted now :T

*** Warning to all of you that once your released from bankruptcy to get your credit reports and make sure they are correct ***

Its such a safe haven having this site..

Can I ask you something Silk.. Please please dont think Im being pedantic or rude, Im not. Just interested. Can I ask why you now have / had debts at such a level after you have been to hell and back before ?

silkglade

Basicly I did not learn my lession, harsh to my self but true.

I have a friend that when I went bankrupt got a credit card with me as a named cardholder which helped us to get through, as I had to give up work when i had my daughter.

by the time the bankruptcy ended the Halifax card was at a staggering £11K, which we were only making minimum payments on each month.

It was not till 4 years later that I had my "lightbulb moment 2nd time round" Hubby and I had done role reversal - him a house husband and me going out to work. I was then off work when daughter No2 came along, and loved having 8 months at home with hubby and family, also have 12 year old son from previous relationship. but money was so tight as the payment's were crippling us. so Feb 06 when I went back to work decided that I HAD to get the card cleared ASAP.

Which with the help of a friend it was gone in 6 months, we could not get our own card at the time to transfer the balance to a 0% as nothing was on our credit report to say that we had any other cards and also came to notice the above mentioned on our credit report, we then paid him back all that he had leant us (saved us a fortune in interest) but he would not take a penny more.

while we paid off huge amounts from the halifax cc and our friend back we took advantage of the 0% offers and then made sure they had a nil balance before the interest free peroid was over

I then started applying for cards as I knew they were the easiest to get so that we could get a credit history to apply for a mortgage which is our goal. and then spent things on them to pay them off and get a good credit history behind me.

They were not that bad really as the Egg one was costs of moving house and solicitors costs that we knew as soon as the move went through we would be able to pay it back straight away. the Capital one card we used for food each month and then paid it in full each month and the same with tesco until our slip up last month in getting a new sofa set in the sale. all the cards have been on 0% and we have never paid any interest on them - also got a dishwasher on 0% for 6 months on the Tesco card. ad all with be at Nil balance within 3 months.

Mike_St_Helens

silkglade wrote: »

Basicly I did not learn my lession, harsh to my self but true.

I have a friend that when I went bankrupt got a credit card with me as a named cardholder which helped us to get through, as I had to give up work when i had my daughter.

by the time the bankruptcy ended the Halifax card was at a staggering £11K, which we were only making minimum payments on each month.

It was not till 4 years later that I had my "lightbulb moment 2nd time round" Hubby and I had done role reversal - him a house husband and me going out to work. I was then off work when daughter No2 came along, and loved having 8 months at home with hubby and family, also have 12 year old son from previous relationship. but money was so tight as the payment's were crippling us. so Feb 06 when I went back to work decided that I HAD to get the card cleared ASAP.

Which with the help of a friend it was gone in 6 months, we could not get our own card at the time to transfer the balance to a 0% as nothing was on our credit report to say that we had any other cards and also came to notice the above mentioned on our credit report, we then paid him back all that he had leant us (saved us a fortune in interest) but he would not take a penny more.

while we paid off huge amounts from the halifax cc and our friend back we took advantage of the 0% offers and then made sure they had a nil balance before the interest free peroid was over

I then started applying for cards as I knew they were the easiest to get so that we could get a credit history to apply for a mortgage which is our goal. and then spent things on them to pay them off and get a good credit history behind me.

They were not that bad really as the Egg one was costs of moving house and solicitors costs that we knew as soon as the move went through we would be able to pay it back straight away. the Capital one card we used for food each month and then paid it in full each month and the same with tesco until our slip up last month in getting a new sofa set in the sale. all the cards have been on 0% and we have never paid any interest on them - also got a dishwasher on 0% for 6 months on the Tesco card. ad all with be at Nil balance within 3 months.

Sound... At least you can justify it... Not like my reckless spending pre B !

Im sorry to have asked that, just interested.

Mikey

allofadither

silkglade wrote: »

Basicly I did not learn my lession, harsh to my self but true.



I then started applying for cards as I knew they were the easiest to get so that we could get a credit history to apply for a mortgage which is our goal. and then spent things on them to pay them off and get a good credit history behind me.

Thanks for sharing your story. And well done to making such an effort to clear your debt. I am particularly interested to see how you attempted to repair your credit rating. To be honest, I hadn't considered this at all, too early in my own BR. But please tell me this isn't the ONLY way to repair a shattered credit record. I mean, having to get another credit card(s) as a means to getting a mortgage or a proper bank account just seems plain stupid.. that's asking for trouble. I personally don't want another credit card but I do ultimately want my credit record to be 'clean', especially if I want a mortgage in the future.

silkglade

Mike_St_Helens wrote: »

Sound... At least you can justify it... Not like my reckless spending pre B !

Im sorry to have asked that, just interested.

Mikey

No problem, the spending after bankruptcy was my fault no question, and to be honest I totally spoilt my son, spent tons on him as I felt guilty for throwing his dad out when I found out that he was mistreating him.

Reason for Bankruptcy. bought house with above mentioned ex - got doubleglazing put in straight away then found out about ex and son - threw ex out and could not afford house, which was old house that needed loads spent on it. Met hubby who had own commitments as he was single and care free before meeting me and could not help - so i dragged him down too both ended up bankrupt, but I can tell you I still remember what it felt like

Mike_St_Helens

silkglade wrote: »

No problem, the spending after bankruptcy was my fault no question, and to be honest I totally spoilt my son, spent tons on him as I felt guilty for throwing his dad out when I found out that he was mistreating him.

Reason for Bankruptcy. bought house with above mentioned ex - got doubleglazing put in straight away then found out about ex and son - threw ex out and could not afford house, which was old house that needed loads spent on it. Met hubby who had own commitments as he was single and care free before meeting me and could not help - so i dragged him down too both ended up bankrupt, but I can tell you I still remember what it felt like

You sound like a very caring sound person though !

Old OH... Hmmm...