Allowing the Suspended Possession Order then going bankrupt? Please help!

Daisy4567

Hi All,

Well, things are hitting a pinnacle for us. For years we've fought debt, tried an IVA (which now through job loss we can't pay and it is on the verge of failing).

We live in a house which is riddled with mould and damp and we can neither afford the upkeep or the two mortgages.

The first charge (Northern Rock) already have a Suspended Possession Order on the property which we have maintained payments on, but we cannot afford the second mortgage.
We don't want to live here anymore. We have tried selling it ourselves 3 times without success.

We have issues with our neighbour who has already attacked my husband in our own home as he forced his way in.

So, we finally have a chance to get out and get a new start with a sympathetic Landlord who is willing to give us a chance, so we intend to allow the suspended possession become possession and send the keys back.

Thank you for sticking with it this far. So, although I know doing this and going bankrupt is the right thing - I am terrified!

My question is....what will happen? I have no experience of what happens when we allow the mortgage to repossess. I know it will sell for a shortfall and so we intend to go bankrupt to clear that and the IVA but I don't know what to expect.

Is anyone here willing to advise me on their experiences or what to expect? I would be so grateful as I am so anxious about taking this step.

Thank you in advance.

debt_doctor

Hi,
To some extent you have answered your own question.


It is clear that you can no longer live in your current home, and you have chance of a private rent.


If this makes you happy, and the rented property is a good one then I suggest (based upon the little I know about you) that you go for it.


Ultimately the mortgage shortfall and any other debts will fall in to your BR (Take advice)


Your IVA, if it fails, will be as if it never happened.


DD

Daisy4567

Hi Debt Doctor, thank you for your reply.

On Sheltered.org it says we are responsible for the mortgage payments until it sells. Surely this is a double edged sword as we cannot pay the mortgages and rent.

Mind you, we cannot afford both mortgages anyway. I know we have to keep paying the buildings insurance on it until it sells.

Thank you for letting me know what would happen with the IVA, I was wondering.

fermi

Daisy4567 wrote: »

On Sheltered.org it says we are responsible for the mortgage payments until it sells. Surely this is a double edged sword as we cannot pay the mortgages and rent.

That is slightly misleading, because although your mortgage agreement says you are responsible, the only thing the lender can do if you don't pay the instalments is to repossess and sell. Obviously interest and charges would continue to accrue, but if you are going bankrupt then everything falls into the bankruptcy anyway. Even if you don't go bankrupt, your priority is to rent somewhere new. No way you should be making mortgage payments on a house you have given up.

skint98

Hi we voluntarily surrendered our house to nram just before Christmas and as previously mentioned although technically liable for mortgage payments we haven't paid as we are also renting privately. NRAM have never contacted to ask for any further payment. It's currently for sale and once sold the mortgage payments will be added to the shortfall as there is negative equity and also whatever other fees there are. At that point we will apply for bankruptcy. I know it's scary. I was so upset at the thought of leaving our family home with our 3 young children. It was emotional at the time but already I feel so much better and that a huge weight has been lifted even though we haven't even started going down the bankruptcy route. I can now see light at the end of the tunnel even if it is a bit down the line. I wish you all the very best and hope you settle into your new home quickly.
Best wishes
P.S. once the mortgage company have taken possession you can contact your building insurance and let them know and cancel the cover. Also let your local council tax office know the property has been repossessed.

Daisy4567

Thank you fir your replies, I really appreciate it. @Skint98 it is reassuring to hear your experience so thank you.

Fermi and Debt Doctor, thank you for your advice - I feel happier now that we are doing the right thing. I was worried about having to pay the mortgage and rent as it would be impossible.

Do I give the mortgage companies our new address? Or not?

samurai1

Had a similar set up with NRAM, regarding mortgage, was made BR 4th July 2013, used the money from the missed mortgage payment to pay BR fee.
After I had my phone call with OR office, rang NRAM a couple of days later to inform them of BR, all they asked was for the BR court number and OR contact number, apart from those question`s the lady from NRAM said she would up date there records and that was that.
Never heard from them again, from that day to today.

tiggerbodhi

Hi,
Can concur with all the above, stop paying the mortgage, move, do your BR and let time takes its course, any monies owing after the repo and sale fall into your BR, from start to finish Santander took six months to complete after handing back the keys.


The main thing is SIGN NOTHING from the mortgage company, if you do communicate with them (does make thinks a bit smoother and leave you feeling more in control) write your own letters, beware that some will get you to sign a deed of assignment meaning you are responsible for costs even if BR.


Good luck, :-)

National_Debtline

tiggerbodhi wrote: »

beware that some will get you to sign a deed of assignment meaning you are responsible for costs even if BR.


Good luck, :-)

Hi there,

Just a small correction. This is known as a deed of acknowldgement. It is important not to sign anything after the bankruptcy date unless you are 100% sure what it is.

Best wishes,

David @ NDL.

tiggerbodhi

That's the beastie! knew it started with an A!!

Daisy4567

Thank you all, I have just posted another thread but any replies on this would be gratefully received as we now need to write the letter to hand the keys back and I just don't know what to put?

The house has a terrible damp problem and we cannot afford the upkeep or the maintenance it needs.

NRAM are now chasing us several times a day as is the secured loan.

Please help guys, what are my next steps?

Thank you again for your advice