advice

MiaowMiaow

hi
I am now considering BR and wanted to check something -
I jointly own a house with a family member and the house is in negative equity.
I can continue to make the mortgage payments.
Am I right that I can continue living in the house and then after 2 years 3 months they will check for equity and if so obviously look to take that?
Just paranoid that I will lose the house.........
stressed out with it all!

banksshouldworry

If you declare bankruptcy then the Official Receiver will have control over your house for 3 years from your BR date. As it is in negative equity, the OR will be very unlikely to sell it right away.

The OR will review the equity situation of your home around the 2 year, 3 months point but they have a say in what happens to your home for 3 years after you declare bankruptcy.

Even if your home has some equity in it the OR needs to make sure that there is a net gain from any sale so they can pay themselves and distribute some money to all of your creditors.

They need to factor in around 3% of your property value for estate agent fees and solicitor fees etc.

They will also give you the option of buying back your interest in the house.

Take a look at property values around your area and whether they are likely to go up in the next few years.

If you own the home with your brother, then this makes it a little more complicated so get some proper advice first.