BR, negative equity and letter from mortgage company NOT to sign

thinkpositive1

I have read on other threads that with negative equity, whereby this is picked up as a debt within the "bankruptcy estate" (which I made clear on my BR paperwork and in my interview with the OR) whatever you do is don't sign any letter from the mortgage company that may follow on. Think it's a "Deed of Acknowledgment" which would then "trump" the BR and legally make me liable for that debt outside of my BR.


Can I ask if anyone knows when a mortgage lender is likely to send this letter to me? I voluntarily surrendered my property and an estate agency has recently put on the market. It may well get sold within the next month or 2.


Is it at the point of the sale transaction, when the mortgage lender can calculate the precise shortfall they want to pursue that they will then write to me, or can it be anytime in the future after that (or even before it's sold)?


Just want to be prepared for it.

fermi

Most usual time is at the time of voluntary surrender, when they try to sneak it in there.

If you've already done that and didn't sign something like that, or the VS was before your BR date, then may not be likely now.

If it's already in their possession they don't need your permission to sell as fall as I recall, so you can just ignore anything they might send you?

thinkpositive1

I had one letter from them - the form to sign which was whereby I provided a date for them to take possession of the house.


I read this carefully at that time, to make sure there was no sneaky clause in there saying I hereby agree I will be liable for any shortfall. It was purely about a date for me to relinquish the house.


Paranoia make me wonder if there was anything at all in the small print which would be a deed of acknowledgment but I did treble check it before I signed it off.


This was done about 6 weeks before my bankruptcy.

fermi

If it was signed before your bankruptcy, it wouldn't matter if there was anything. The BR would cancel it.

It's AFTER that you have to be careful, as you don't want to make a new binding agreement to pay the shortfall.

thinkpositive1

thanks Fermi...you've removed that niggling worry I had