Carry on in own home or move to rented?

So_Sad_Angel

Hi,

I am going throu transition from own PDH ( personal dwelling house) to rented accom. If I then get rented (subject to refs/ credit search-already applied for-await confirmation) then I intend to move asap. (wef 1st May 08) .

My question is - shall I stop paying mtge & SL wef May & then call & hand keys back to mtge co (NRock) ...what are implications? is this as bad as vol repo?? OH faces BR & way things are I may as well go down same route...want it all to end!!!

Angel!!! (currently having rollercoater moment!!!!)

fiveyearplan

I think you need to post more about your situation for anyone to give you any advice. Are you behind on mortgage payments? What other debts do you have, what do you have coming in etc.

I think giving your keys back to the mortgage company is voluntary repossession and if you and your husband are going to go BR it doesn't really matter how that looks! Anyway don't do anything until your credit search for rented accommodation comes back.

Toon_Dave

hi again SSA.

Your situation with house and moving to rented is the same as mine. I have been advised by numerous parties to do exactly that.

my advice from both CCCS, CAB and infact IP via the CAB has been to find rented first, but in order to find funds for this and save for BR you have to get money somehow and it is well accepted to stop paying all other creditors, loans, mortgage etc to allow this,

it would be different if you stopped paying and went on a world cruise or something but because you are using it to better the situation it is not frowned opon.

i would check your indivual situation with the CCCS insolvency department as i am no longer with OH and so BR only affects me directly - although she will be shocked when shes contacted by mortgage and secured loan companies.

Dave. I am with Northern rock too...and have unsecured loan with them.

So_Sad_Angel

Dave, I have already posted SOA (as you have seen ) 5YP see below

:eek: Angels SOA - It goes on & on ...sorry

This is where I am now. Actually is very confusing because if I go BR then will lose job (checked this out & so will resign & get new job) . CCCS suggest DMP if I manage to sell house (this will then mean further I&E at later date) If I go down DMP then will have to use proceeds of car & shares (c20k) to repay employer loans before DMP so they won`t find out.

I am where I am here & have been as honest as I can . Debt has been part of life for so long it seems hard to face. The balance has been tipped here recently by house renovation (cost c70k that we have funded on top of already in debt position) We made the wrong move in 2006. Recently my NRock Mtge came off 2 yr rate (Int only) & jumped from 635 to 1100!!! rate doubled!! House on market & looking to rent.

Here goes- This is now

Income - 2100 take home + quarterly bonus 1500 take home ( not gteed)
Board from daughter 200 pm

Total 2300 (+ 500pm equiv take home - bonus but not gteed)

Mtge 550 (half share) Jnt Mtge NRock £173k val 285k
SL 450 (half share) Jnt Picture SL £104k redemption figure

Water 56
Council T 168
Gas 70
Electric 65

Build Ins 34
Phone mob 30
TV Lic 13
Satelite 21
Internet 15

Life !!! 25
HP Sofa 32 Balance 600

Car serv 10 Car worth 2k no hp
Road tx 12
Car Ins 19
Fuel 90

Food 150 (half share)
Pet Exps 20

No Tobacco

Dentist/opts 13
Hair 7
Clothing 21
Sports 10
Sundries 10

Outgoings 1891.00

Surplus 409.00 (not including bonus which adds 500 to this)


Debts ( sharp intake of breath at this point!!!!)

Northern Rock loan 6000 87pm
Bank odraft 800
Bank Loan 11,700 226pm
Bank Cr card 13,400 300pm
Amex 1,400 45pm
MBNA 9,400 132pm
MBNA 2,100 60pm
Mint 3,900 75pm
MSDW 3,800 80pm
Sainsb CCard 7,400 180pm
Marks & Spencer 4,400 132pm

Black Horse Loan 5,800 118pm Caravan that can be sold
Clydesdale 6,800 Due to commence in Apr08 at 350pm-studyloan

Total 76,900 per month 1,435 (not incl Clydesdale yet!!)

Less savings 14,000 shares to sell
5,000 another car to sell
5,000 sale of caravan (will remove Black Horse loan)
Reduced Debt total

= 52,900 This will reduce monthly pmts accordingly

I have juggled monies around & have been getting extra 250 per month from ebay as selling up house stuff.

If I sell I can rent at 695 pm thus no SL / Mtge etc .

OH is going BR . So my position is on a knife edge . If I sell shares, car should I reduce most expensive credit or bank credit ?

Don`t know which way to go. Spoken to CCCS & await their debt plan.

Angelxxx



However not sure how ong I have until Nr & Picture will give me b4 they start getting shirty.....also does it look worse if I admit I can`t pay because I have moved out??? Currently BR is looking pref option.

Thanks Angexx

So_Sad_Angel

Question is.....if I stop paying Nrock & Picture wef 1st May ...what will they do if I hand back keys???

1.is this worse than vol repo?

2.Should I put on market & leave it?

3. Renovating so can`t afford to finish so shall I just leave???

4. If I just leave & OH is BR (joint on mtge) what will they do to me?? - this worries me most!!!!

Scared Angel...evenings always most worrying time!!!

Toon_Dave

Angel, If only the OH goes bankrupt then the responsibility and liability is shifted to you on all joint area, think you know this already from earlier posts.

'also does it look worse if I admit I can`t pay because I have moved out??? '
Who does it look worse to?? mortgage company or OR ??

i think you need to look at how long it would take on a DMP to pay back the amounts you owe, you would generally be expected to pay creditors full amounts owed back. With an IVA it is based on surplus income for upto 5 years ish, but again after that they can potentially say not enough paid to them and push for further IVA or BR.

With BR now, both you and hubby are in same situation from the off, probably would have to pay an IPA - over 3 years. % based on surplus but smaller than IVA arrangement. i will post the percentages on here in a minute for the IPA route - via the fantastic FERMI.

Dave.

Toon_Dave

So_Sad_Angel wrote: »

Question is.....if I stop paying Nrock & Picture wef 1st May ...what will they do if I hand back keys???

1.is this worse than vol repo?

as long as you have roof over head, does it matter what they think. Handing keys back is generally seen as better as you are delaing with it before running up massive debts you know cant afford to pay back.

2.Should I put on market & leave it?

Get full legal advice but possibly just rent and hand back, it then saves you any legal/EA fees, also once it is handed back the property debt is classed as non secured (as you know longer own property) so therefore would be part of the BR order anyway.

3. Renovating so can`t afford to finish so shall I just leave???

leave it as it is, dont waste time and money when you can afford it, obviously depends on whether you sell or hand keys back.

4. If I just leave & OH is BR (joint on mtge) what will they do to me?? - this worries me most!!!!

unless you declare BR i believe you are classed as joint and severally liable so if you cant afford to pay mortgage and SL you would have to declare BR too.
With that in mind i probably think it may be best if you and OH went BR at same time. clean fresh start for you both then.

Scared Angel...evenings always most worrying time!!!

i hope some of that helped...please dont be so scared or worried...we are here to help and assist where possible...there is always a solution.

Dave.:beer:

So_Sad_Angel

Dave, you`re a great help thanks,

I think if OH is going Br ...then why should I carry all the debt!!!!! & the mtge & SL come afer me!!! I am up to date will all my bills (sorry debts) but know I cannot carry mtge 1100 & SL 850 pm out of my salary...he knows this will make me BR. Not bitter as I want an end to it all!!!

Angexx

fiveyearplan

ARe any of those debts in joint names or are they all yours?

If you intend on renting then I'd stop paying mortgage now. It'll take 3 months for them to repossess anyway and you could use the mortgage money for your rent/deposit etc. If you think you are going to go BR I'd stop paying all non-priority bills now too.

Good luck!

Toon_Dave

Angel, You are welcome for the help. im still coming to terms with what i need to do to. I've cancelled all my DD's and SO's and am viewing rental properties tm. I have decided i need a fresh start..and after all its only bricks and mortar and if you have your love with your husband etc then does the rest matter in a way....And as Five year plan says...repo takes a while and even if they threaten court fees etc all of that would be wiped during the BR order so possibly a no loss situation in a way...although BR is a massive decision..

i think only you and hubby can make to true decision sweetie.

Dave.

Toon_Dave

HERE ARE EXAMPLES OF THE IPA FIGURES YOU COULD EXPECT TO PAY BACK IF YOU GET THE ORDER AFTER BR...DOESNT ALWAYS HAPPEN - YOU MUST HAVE £100 OR GREATER FREE SURPLUS (FIRST £100 IS FREE FOR YOU TO KEEP) AFTER ALL MONTHLY SPENDS HAVE BEEN PAID FOR, RENT, COUNCIL TAX, UTILITIES ETC.

Full Table.

This is a table of IPA percentages that you can expect to pay on any surplus income:

1st Column=SURPLUS INCOME
2nd Column=AMOUNT TO BE PAID
3rd Column=% OF DISPOSABLE INCOME

50 Nil
60 Nil
70 Nil
80 Nil
90 Nil
100 50 50
110 55 50
120 60 50
130 65 50
140 70 50
150 75 50
160 80 50
170 85 50
180 90 50
190 95 50
200 100 50
210 105 50
220 110 50
230 115 50
240 120 50
250 150 60
260 156 60
270 162 60
280 168 60
290 174 60
300 180 60
310 186 60
320 192 60
330 198 60
340 204 60
350 231 66
360 238 66
370 244 66
380 251 66
390 257 66
400 264 66
410 271 66
420 277 66
430 284 66
440 290 66
450 297 66
460 304 66
470 310 66
480 317 66
490 323 66
500 350 70
510 357 70
520 364 70
530 371 70
540 378 70
550 385 70
560 392 70
570 399 70
580 406 70
590 413 70
600 420 70

I KNOW ITS A MASSIVE LIST BUT WILL GIVE YOU AN IDEA OF WHAT WILL BE IN STORE SHOULD YOU GO THAT WAY.

DAVE.