My house and BR

leighj

Hi, been reading the forum for ages and now decided that my hubby will go BR asap so this is my 1st post. We have a mortgaged home (124K) secured loan (58K) and the house is worth 170K If my hubby goes BR what are the chances of us losing the house? I have a dependent aged 10 living in the house.
Will we have to sell to pay the secured loan as it is a debt? Can my mortgage lender or loan lender force a sale?
Many thanks

P.S I LOVE this website it makes me feel human!!!

pistonbroke

Hi Leighj, I can't say for certain, but my wife and I were in a similar situation ourselves, both going BR and a house + Secure charge being more than the house is worth, and they let us keep it

But with just your SO going BR, they would only be interested in their half iirc.

silvercar

With the mortgage and charge exceeding the value of the property, you would be able to buy out your husband's beneficial interest in the property for a few hundred pounds. If you intend doing this best to act sooner rather than wait a few years when the house is worth more and the official receiver could demand much more.

The mortgage and secured loan will not be included in the bankruptcy (which only covers unsecured debts), so whether you can keep your home long term depends on being able to meet the repayments.

There is a question of the secured debts being part of the bankruptcy if they became realised after bankruptcy, but this would be after a repossession or similar.

The bottom line is that you should be able to keep your home if you can continue to meet the mortgage and secured loan repayments.

leighj

Hi guys many thanks for the quick replies. I was hoping that this would be the case with house. I'm working on the forms at present so I will keep posting my progress. It's nerve racking and taken nearly a year to go down this road but I know its the right option and it can't possibly be any worse than having phonecalls from creditors from 8.30am to 9pm and on Sundays!!!
Cheers