Newbie and in debt

direstraites

Hi all well finally plucked up the courage to register on this great forum after weeks of reading posts etc

Me and the wife`s sitation is like most`s people`s on here.....

I own the house (in my name only)
Joint secured loan on the property(now £100k with added intresst) :mad:
Unsecured debts nearly £30k approx :eek:

After a couple of visits to the CAB they have adviced us to let the house be reprocessed(secured loan company taking us to court on te 4th jan) We have 3 kids all under 13 so looking for somewhere to rent asap(not easy this time of year)

The house is only worth £85k max

We are in the process of opening a account with coop,is this the right thing to do? Want to stop paying the morgage but its with the halifax and bank account at the mo is with them

Have we been adviced correctly ref the house as the cab person was a tad arrogant to say the least :eek:

Sorry for the long post,but mind in a total mess at the mo trying to work out the best way forward eg when do i make myself br etc?


All the best and Happy xmas............Lee

madoldbat

Welcome to the board Dire.
Dont apologise for asking questions and feeling things are totaly confusing.We have all been/are the same.You will get help and support from others who know just how you feel.No question is too silly no problem too small we will help best we can.
I do not have any personal experiance of BR and home ownership (we rent) but others on here do.Its a busy day today so it may take time to get a helpful reply re house question.But some one will be along soon.
This will bump your posting up again so it hopefully will be answered soon.

welshpaula

hi lee can only tell you in brief of my experience had my home repossessed 11 years ago ,after bitter divorce ,was then pursued for shortfall on mortgage of £15000 10 years later ! the debt must have been sold on (they can pursue you for 12 years with a mortgage debt)i got rehoused eventually had 2 little girls at the time then met my BF who owns his own house moved in with him ,continued to get into debt credit cards etc (never recieved any maintenancefrom ex) went bankrupt in may 2006 discharged in may 2007 . a massive weight off my shoulders and am now getting on witth my life with NO credit !the important thing is to get good advice from the right people i did and it helped ! definitly get a bank account somewhere else though . good luck paula x

Scarlett.1974

Hi Lee

If you're not impressed with the advice you receive from the CAB why not try one of the free debt charities like Payplan or CCCS? I can highly recommend CCCS myself, they were fantastic when I contacted them (a sobbing wreck) and talked me through everything

Sorry, but am a little confused re your housing situation. Your house is worth £85k you think and you owe £100k, is that right? You might not necessarily lose your house then if you do go BR (if that's what you want of course). You could just go BR for the unsecured debt. I'm no expert on housing (or anything else for that matter), but I'm sure one of the more knowledgeable types will be along soon It can be quieter at the weekends, and especially this close to xmas

tigerfeet2006

I would definatly give one of the other agencies a ring if you are worried about the CAB. My motto is you can never have enough advice

The house is a difficult one I'm afraid. It will depend a lot on how much your mortgage is with the secured loan. If it is asignificant chunk of your income then you probably will have to let it go as the OR won't like it. There are more on the board who know more about houses than I do.

Definatly get that account open with the Co-op as you will not be able to keep your Halifax account.

All the best

debt_doctor

Hi, as Tigerfeet says, its wether you could stiil afford the mort / securedloans or wether you would prefer or find easier to rent somewhere for a lower payment.

If you cant afford the payments then it would be best to stop paying anything and use the money to provide abond / deposit. What about your local council re homeless legislation ??

Best

DD

silvercar

Others will be better able to advise you than me, but can I try and draw some information out of your post.

The house value is 85k max, how much is the mortgage and how much the secured debt?

Presumably the (main) mortgage isn't most of the value or the secured loan people wouldn't gain much from repossessing you.

WelshPaula is right in that the lenders can still chase you for money that is not repaid by the sale of the house. Though if you did go bankrupt (and I am not sure from your post if you are looking to go bankrupt as well as being repossessed) this debt that was secured would become unsecured and should be written off in your bankruptcy.

Another thing to consider is whether you could afford to stay in your home if the unsecured debt was out of the equation.

direstraites

Sorry for the delay in replying but loads going on

The morgage is £25k and the secured loan £100k now Both me and the wife have decided that br is the way forward but can i make myself br only? The secured loan is in joint names but the morgage is in my name only

In court jan 4th for the reprocession order :eek: so not looking forward to that one bit

Richard_S

direstraites wrote: »

Sorry for the delay in replying but loads going on

The morgage is £25k and the secured loan £100k now Both me and the wife have decided that br is the way forward but can i make myself br only? The secured loan is in joint names but the morgage is in my name only

In court jan 4th for the reprocession order :eek: so not looking forward to that one bit

Hi Lee,

You can't petition for your wife's bankruptcy if that's what you mean; she will have to petition herself, and that means two lots of fees.

As for the repossession order the Judge will certainly do everything he/she can to ensure that you're not made homeless, especially when you have a young family. If you agree to continue paying the mortgage and secured loans with a regular montly payment that you can comfortably afford, off any arrears then you should be o.k.

You don't say whether you have sufficient income to pay the mortgage and secured loans, and if you don't, but offer to pay the mortgage and whatever you can afford towards the secured loan, then the Judge may well agree to suspend the repossession for a period of time to allow you to come back with a more acceptable proposition.

Whatever happens, don't be afraid of the Court or the Judges; they put the fear of God up politicians and faceless organisations. If you can make any offer to help yourself they'll give you the chance to do it.

Regards

Richard

debt_doctor

Hi DIRE,
If you cant offer full payment plus something off the arrears then your court appearance will be over in less than 2 minutes.
From the sale the 1st mortgage will be redeemed first, and will then service whats left to the 2nd mortgage. You will both be responsible for the full amount of the 2nd loan shortfall, your BR will deal with your liability for it but will leave your wife with the liability, with the usual enforcement action available.

Best

DD

tigerfeet2006

Lee if you go BR and your wife doesn't then all the joint loans fall on her shoulders. Not half the the joint loan, all of it. You both need to go BR to get rid of the joint loan.

Check out this thread there is some very good information on it

http://forums.moneysavingexpert.com/showthread.html?t=652549