My House

silvercar

So any arrears will be included in the mortgage redemption and paid off first, before the OR gets any of the remaining equity. So if there is going to be a surplus the message is to stop paying the mortgage to save up for a rental deposit. If there is going to be a shortfall that will be lodged with you, so by saving for a deposit you have really just borrowed against the old mortgage and this will be an unsecured new debt for you.

So by not paying the mortgage, you either save up some money (free of charge) or you have managed to raise an unsecured loan. Win, win or am I missing something?

Mike_St_Helens

silvercar wrote: »

So any arrears will be included in the mortgage redemption and paid off first, before the OR gets any of the remaining equity. So if there is going to be a surplus the message is to stop paying the mortgage to save up for a rental deposit. If there is going to be a shortfall that will be lodged with you, so by saving for a deposit you have really just borrowed against the old mortgage and this will be an unsecured new debt for you.

So by not paying the mortgage, you either save up some money (free of charge) or you have managed to raise an unsecured loan. Win, win or am I missing something?

Nooo.. as I understand, my question to my OR was :

As you point out below about any arrears become unsecured on completion and added to our bankrupt unsecured debt. is this the case if we accrue
the arrears now ie post bankruptcy ?

The relpy was :

So yes the arrears on a mortgage will be added to the charges and paid off by the sale proceeds (as the mortgage and arrears are classed as one)upon
completion - shortfall is then lodged with us.

I guess you are right in the 'raising' of a loan... Or am I missing something (Like a big fat BRU ?)

silvercar

So yes the arrears on a mortgage will be added to the charges and paid off
by the sale proceeds (as the mortgage and arrears are classed as one)upon
completion - shortfall is then lodged with us.

I read that as the arrears being classed with the mortgage and paid off before the remaining money goes to the OR. (That is how the solicitors work, they get a redemption statement that includes all the arrears and would pay that from the proceeds first.)

If there is no shortfall, there is nothing to lodge with you and you walk away having got a couple of months of arrears stashed. If there is a shortfall then you get it, but you could pay some of it off, if you had kept the arrears money? (maybe by offering a full and final settlement against it). Or raise a rental deposit with the stashed money.

I'm beginning to think it is going to be possible. You can't make a decision until you know the value. I would be asking estate agents 3 questions, current market value, price to go on market with and what price they think you could achieve if you wanted a quick sale. Have a story ready to back this last one up - potential job offer abroad etc.

Mike_St_Helens

silvercar wrote: »

I read that as the arrears being classed with the mortgage and paid off before the remaining money goes to the OR. (That is how the solicitors work, they get a redemption statement that includes all the arrears and would pay that from the proceeds first.)

If there is no shortfall, there is nothing to lodge with you and you walk away having got a couple of months of arrears stashed. If there is a shortfall then you get it, but you could pay some of it off, if you had kept the arrears money? (maybe by offering a full and final settlement against it). Or raise a rental deposit with the stashed money.

I'm beginning to think it is going to be possible. You can't make a decision until you know the value. I would be asking estate agents 3 questions, current market value, price to go on market with and what price they think you could achieve if you wanted a quick sale. Have a story ready to back this last one up - potential job offer abroad etc.

Thanks silver.. You have been a great help.

The valuers are coming tomorow !! I shall update you. my story will be... Ok.. Im a down and out bankrupt who wants rid of his rotting damp house as its gonna cost him in years to come, I want a decent pad in liverpool so I cn meet my mates. wwoooooo :eek:

Mike_St_Helens

Afternoon all....

Value has been set at £80k. Mort £73.5k so appx £6500 BI.

We were kind of hoping for neg eq, or as near to it as possible but this aint the case.

Guess Id best start packing now eh ! Anyone know where you can get decent boxes !

Mike_St_Helens

Well its up for sale now... No going back !

savagevixen

Ahh Mike, hope your feeling ok about that! Good Luck to you both, must be a bit of a shock.
Vix

Mike_St_Helens

savagevixen wrote: »

Ahh Mike, hope your feeling ok about that! Good Luck to you both, must be a bit of a shock.
Vix

Thanks vix, it is a bit of a shock, should have see it all coming really as its been a whirlwind to make a decision and all that.

My heart feels a little heavy, Ive owned my own home since i was 21, and now feel that its been taken off me. But on the other hand i guess ive just been renting from the bank for the last 10 years instead of a landlord.

These things always happen for a reason, im a great fate believer and this is the future and i hope its bright !

savagevixen

Mike_St_Helens wrote: »

Thanks vix, it is a bit of a shock, should have see it all coming really as its been a whirlwind to make a decision and all that.

My heart feels a little heavy, Ive owned my own home since i was 21, and now feel that its been taken off me. But on the other hand i guess ive just been renting from the bank for the last 10 years instead of a landlord.

These things always happen for a reason, im a great fate believer and this is the future and i hope its bright !

I am a fate believer too, it will all be cool in the end. And it's a really good way to view it, that you've been renting of the bank. The future will be bright! (Lets just hope it's not bloody orange!) And at least all the worry and uncertainty will be gone, and an absolutely fresh start will do you both the power of good!