Charges on house

jeanie49

Please can anyone help. I have sold house but it is in negative equity for £40,000. Mortgage company have agreed to sale and we have a payment plan to repay debt. I have 1 charge on the house for £10,000 but they will not agree to sale and are threatening bankruptcy if the debt is not paid in full before they agree to a sale. I have no money or assets and have offered to repay monthly amount as previously agreed in court. If they stop the sale the house will be repossessed. Can anyone help with this situation please?

DandelionPatrol

Let them bankrupt you? This would write off debts of £50,000.

HappyMJ

jeanie49 wrote: »

Please can anyone help. I have sold house but it is in negative equity for £40,000. Mortgage company have agreed to sale and we have a payment plan to repay debt. I have 1 charge on the house for £10,000 but they will not agree to sale and are threatening bankruptcy if the debt is not paid in full before they agree to a sale. I have no money or assets and have offered to repay monthly amount as previously agreed in court. If they stop the sale the house will be repossessed. Can anyone help with this situation please?

No money...no assets...£50,000 of debts. (In my opinion) Bankruptcy is the best solution. You'll save money if a creditor pays for your BR fees as they will be written off too....so my advice let them make you BR. In the long run you will have more money. In the short term you might be a little restricted as to what you can spend money on but the allowances are quite generous...you might even find you have spare money if you've already been living on a tight budget to try and make ends meet.

owlet

HappyMJ wrote: »

No money...no assets...£50,000 of debts. (In my opinion) Bankruptcy is the best solution. You'll save money if a creditor pays for your BR fees as they will be written off too....so my advice let them make you BR. In the long run you will have more money. In the short term you might be a little restricted as to what you can spend money on but the allowances are quite generous...you might even find you have spare money if you've already been living on a tight budget to try and make ends meet.

Same as above. No Brainer if you have all that debt & no assets.
Wipe the slate clean & start again. If you have otherdebts they will be included.

sourcrates

If they refuse to lift the charge, then your options are limited, as the others have suggested, allowing them to bankrupt you, seems a reasonable way out of this, that is unless they are bluffing, which is not unheard of.

But,

As you have no equity, would there be any funds left from a sale after your mortgage provider gets paid, to pay the second charge ?
If not, then it could all be bluster.

jeanie49

There are no funds left after sale at all. Charge holder say they want £10k before they will allow sale of house. Looks like out of my hands really.

HappyMJ

jeanie49 wrote: »

There are no funds left after sale at all. Charge holder say they want £10k before they will allow sale of house. Looks like out of my hands really.

Oh well...I'd stay there as long as you can and stop paying the mortgage and the first charge holder will eventually repossess before making you BR. The second charge holder will get nothing.

I read through your previous posts and looks like you've been BR before and been trying to sell for years.

Don't worry about anything. You might feel too old to start again but it's never too late. You'll always get your pension and if you don't have enough for rent in retirement your council will help you pay your rent. You've had quite a few good years in that house so I'd just appreciate the time you've got left there and save everything towards paying 6 months rent up front on a rental property.

Land_Registry

jeanie49 wrote: »

Please can anyone help. I have sold house but it is in negative equity for £40,000. Mortgage company have agreed to sale and we have a payment plan to repay debt. I have 1 charge on the house for £10,000 but they will not agree to sale and are threatening bankruptcy if the debt is not paid in full before they agree to a sale. I have no money or assets and have offered to repay monthly amount as previously agreed in court. If they stop the sale the house will be repossessed. Can anyone help with this situation please?

I suspect already covered by replies but you refer to '1 charge' but how is it protected on the register?

The mortgage will be a 'registered charge' so I assume the 'charge' you refer to is also a registered charge? If so then nothing to add but the term 'charge' can be used in a number of ways when dealing with a property

jeanie49

The charge is also registered but company will come to a mutual agreement now to repay after sale of house.

sourcrates

jeanie49 wrote: »

The charge is also registered but company will come to a mutual agreement now to repay after sale of house.

Basically, they can't take what you ain't got, events may overtake you here, if so, you gotta just go with the flow, I've been there too, had a 12k mortgage shortfall, mine was paid via an IVA, I doubt they will bankrupt you, there is no money in it for them, remember, after a forced sale, they are oblighed to give you 12 months breathing space before chasing any mortgage shortfall debt.

National Debtline is a good place for advice on this.

DandelionPatrol

jeanie49 wrote: »

The charge is also registered but company will come to a mutual agreement now to repay after sale of house.

Take some advice from National Debtline or one of the Debt Charities [Not from a for-a-fee DMP outfit!!!]. You look to be well in it at £50,000 debt. And I think that bankruptcy might be your best option - which is why I say take some advice from somewhere impartial and more equipped than this forum.