A little bit help and info please

TDMum

Not sure if this helps but I'm in scotland too. We sold our flat before declaring bankruptcy and if I knew I could have just handed the keys back then I would have done that. The stress of not knowing if the flat would sell and having to keep trudging back and forth to check it was OK and clean for prospective viewers was horrible. Fortunately ours didn't take an awful long time to sell but we had a shortfall of 15k to get that quick sale. We waited until it had sold before going bankrupt but had I known we could have moved into rented accomodation and just handed the keys back to the mortgage company I would have done that. Job done, end of story. Not everyone will have the same opinion and I am by no means an expert I am just going from personal experience.

Good Luck

silvercar

Question is the bank likely to accept a reasonable offer knowing there will be a shortfall and that we wont be paying as it is planned to add to bankrupcy or are we being stupid and just hand the keys back.

Who knows? They could accept a reasonable offer in the hope that you will pay up the shortfall in time. With missed mortgage payments, they know you have no money at present, so they are more likely to agree a sale. Problem is you sometimes hit a wall and they aren't helpful.

Is the only reason you are not handing the keys back and walking away that you are worried what the neighbours will think? If so, I think you need to balance your potential embarrassment against the hassle of dealing with the sale.

mirabel25

Thank you for the replies, TDMUM did the bank accept the shortfall or did you sign anything? Silvercar, If the bank refuse to accept sale if a good offer then i will hand back keys and let them get on with it.I am quite willing to have a wee bit hassle of dealing with the house sale and yes it a pride and shame thing thats making me try and do the right thing and get as much for the house and minimise any shortfall for impending bankrupcy.

alastairq

and yes it a pride and shame thing that's making me try and do the right thing and get as much for the house and minimise any shortfall for impending bankruptcy.

truly pointless exercise...the lender will not thank you for it, one way or the other.

It did occur to me there may be another [un-thought-of?} reason for trying to get a sale, rather then repo...and that is, would the OP have a better chance of obtaining a mortgage again at some distant point in the future?


Or would the subsequent BR [which will happen anyway, apparently]....to include the unsecured shortfall, mean that this fact alone will inhibit granting a mortgage again?

This is a general question, not aimed at the OP.

mirabel25

I am merely trying to do the right thing and get enough money for the house and have less a shortfall, we have no intention of ever buying again, infact its the worst thing we ever did.The simple fact is i couldnt face the shame of a repossession but if the bank dont accept any reasonable offer then we will be left with no choice.

ghostfinder

Hi Mirabel,


We gave up our own home to move into a rental.

It was the best thing we have done in years. Nice area cheaper rent than we paid in mortgage.

Our shortfall was around £24,000

We did try to chat to our lender but they were unable to help us and we were in negative equity anyway.

Hardly any of our family or friends no what we did with our house. We just say we sold it, they don't even no if we own this house or not.

None of there business

Please don't worry if you need to have your house repossessed.

Neighbours may gossip about it for a while but your good friends will be helping you move on the day

Good luck:)

silvercar

It did occur to me there may be another [un-thought-of?} reason for trying to get a sale, rather then repo...and that is, would the OP have a better chance of obtaining a mortgage again at some distant point in the future?

Of the 200+ mortgage lenders, there may be a handful that will not lend to anyone that has ever been repossessed on principle. There will also be those who would not lend to someone who has been made bankrupt in the distant past.

So theoretically, you may be reducing the pool of potential lenders, but after many years have past and with a good credit rating built, there should be enough lenders around who would consider you; enough that it is not a material fact in consideration's at the moment.

Katiejane_2

Hi Mirabel25, the quicker you file for bankrupsy the better, myself and my partner filled in June 2010 and had our first interview with the Insolvency Service about 3 weeks later who got the ball rolling straight away. We filled out an SOA each which included every debt we had, they wrote to everyone and stopped everyone pestering us and it was very much a piece of mind that we could tell debtors when they rung us to be able to just quote our Banckrupsy court number and date and refered them for any other questions to our insolvency officer. It was a weight off our shoulders. We could have sold the property we were in and bought another even though we were 6months in arrears with the mortgage payments but the insolvency officer informed us that the Building Society we had the mortgage with could put a court order on our new house that in the future if we sold the property they would have first refusal on the capital we made on the property, so think carefully, she advised us to rent and in six years after the discharge date we could buy without the worry of the order on the property. we are now two years after the discharge date three years after the first bankrupsy date and all is well we owe no money at all to anyone, I won't say its a struggle at first but now we are started to save for a diposit. As for what they will allow you to have to live on I found my insolvency officer very helpful, they will even allow you if you have a car on credit to keep the aggreement going as long as the repayments are reasonable. She didn't let us keep sky but there was no loss there we had to scale down our outgoings but we are still here to tell the tale, so chin up and do asap cause the sooner you do the 6years will go quickly. Good Luck

Katiejane_2

I would like to add Mirabel25 we feel we had the last laugh with our Building Society cause we managed to get an offer on our house of £180K before we filled for bankruptsy but them being greedy said they could get more, 5 months later they sold our property for £160K so great they lost another £20K

mirabel25

Whatr now? house valued at 85k morgage 119k, had offer today for full valuation and we accepted, we also have an endownment worth 9k that is tied to morgage so in theory the shortfall will be approx approx 25k.How likely are the bank going to accept the offer and allow us to sell knowing that we intend bancrupcy also if we signed saying we accept shortfall before BR can the shortfall still be included in BR.We are in Scotland.