Wot a life's thread.

wot_a_life

Thank-you all for keeping me going

Thank-you x

RAS

Wot a life

Thanks.

debt_doctor

Hi All,

Regarding this ( and any other court form n9a ) you must offer something such as £1 otherwise you will receive a forthwith judgement ( pay immediaitely ) and leave an immediate path open for a charging order.

I agree with the posters on here that you both need to go BR asap, pay little or nothing to your non priorities and keep to any arrangement with your lender / court regarding your arrears on the mortgage. ( Ifind Richard S stratagy interesting where you stop paying the mort and almost ask for a possession hearing ! There are no guarantees but so long as you can say you can offer full contractual payments plus something off the arrears then the arrears should be able to be paid up to the remaining mort term ( test case Norgan versus Cheltnam and Gloucester )


Keeping your house in BR is not an exact science, but with property values on the slide then the current climate is on your side.

Its quite a long post and Imay have missed an important point. ( thanks for the pm BLTN ) If there are any particular areas you would like my opinion on ill be back on Sat morning.

Best

DD

Richard_S

debt_doctor wrote: »

Hi All,

Regarding this ( and any other court form n9a ) you must offer something such as £1 otherwise you will receive a forthwith judgement ( pay immediaitely ) and leave an immediate path open for a charging order.

I agree with the posters on here that you both need to go BR asap, pay little or nothing to your non priorities and keep to any arrangement with your lender / court regarding your arrears on the mortgage. ( Ifind Richard S stratagy interesting where you stop paying the mort and almost ask for a possession hearing ! There are no guarantees but so long as you can say you can offer full contractual payments plus something off the arrears then the arrears should be able to be paid up to the remaining mort term ( test case Norgan versus Cheltnam and Gloucester )


Keeping your house in BR is not an exact science, but with property values on the slide then the current climate is on your side.

Its quite a long post and Imay have missed an important point. ( thanks for the pm BLTN ) If there are any particular areas you would like my opinion on ill be back on Sat morning.

Best

DD

Hi Debt Doctor,

I would defer to your opinions everytime, and I realise the suggestions I made about the mortgage carry a risk, but it's far less of a risk than not doing anything.

Wot a life's income doesn't leave enough surplus to generate the bankruptcy fees in anything like a reasonable period of time, and if they don't take some positive action quickly then the situation will only deteriorate further.

The other consideration is the amount of equity in the property, which will pose a further problem post bankruptcy, if the O.P and her O.H can't raise the money to purchase the B.I.

Not paying the mortgage for another couple of months has a double benefit in terms of allowing the bankruptcy fees to be generated and further reducing the amount of avaialable equity in the property. As you say, the current climate does work for the O.P in terms of the government applying pressure to banks and building societies to give householders every opportunity to avoid repossession.

I do believe that Wot a life has a very good chance of getting out of her current financial problems, but I can't see any feasible alternative to what I've suggested.

Regards

Richard

wot_a_life

Thank-you debt doctor -

The house is my main priority, I don't want to see my kids in a bed and breakfast for months on end waiting for social housing, They could also put us in a hostel where I would risk the family being split as my son is almost 18, but still in full time education, we have no parents or family to turn to, that's the scary bit, no family support at all.

We currently owe £170k on the mortgage including the arrears,(round figure) there is also a charging order of 2k on it aswell, the house was valued last month at £199.950, altho, I do think that's a bit high, but I have to go with the experts.

If we continued with the mortgage repayments, but paid nothing else, the equity by my calculations would be about 26k, for one of us to declare bankruptcy and buy the BI at this stage, what sort of a figure would we be looking at?

As I explained, we have no family to help us or buy the BI

wot_a_life

I totally understand where you are going with your advice Richard and I am taking your advice, Pleeeaaaassssseeee stay with me!!

Richard_S

Hi Wot a life,

I was sure that Debt Doctor would come across your Thread sooner or later, and his knowledge of bankruptcy is both personal and professional, so nobody comes with any more relevant qualifications.

Obviously I don't know whereabouts in the country you are, and what the prospects are for house prices in your area, but I don't think a reduction of 10% over the next 12-18 months is unrealistic.

There are always ways to obtain a house valuation that's lower rather than higher, but taking your figure of £199k, and assuming that by the time you've declared bankruptcy and got round to discussing B.I with the O.R, that prices have dropped by that amount, that means a valuation of around £179k, and I'm sure you could get lower than that.

Your mortgage and arrears, and C.O are approximately £172k, and perhaps another £4k if you miss a few more mortgage payments. That only leaves equity of approximately £3k, and I realise that if you can't raise that then it might as well be £300k, but I still think you'll ultimately get close enough for the equity to be negligible or negative.

If the equity in your house was significantly more, then you wouldn't be able to "pull it off", but as it is, and with the economic climate being "shaky" at best, I think you'll do it. You're certainly a lot closer than we were and we managed it.

I would never profess to be an expert, and my posts are littered with "take professional advice" but I have lived through what you're facing, and come out the other side smiling.:D

There's more than enough support on this forum to get you through your current problems.

Best regards

Richard

fiveyearplan

wot_a_life wrote: »

We currently owe £170k on the mortgage including the arrears,(round figure) there is also a charging order of 2k on it aswell, the house was valued last month at £199.950, altho, I do think that's a bit high, but I have to go with the experts.

No you don't! The 'experts' just valued my house 80,000 more than I think its worth. You can put a property up for sale for any amount, but its the amount someone is prepared to pay for it that values its worth. There has been a house on my street for sale for 3 years. You can probably guess that it isn't priced to sell!

wot_a_life

Two houses are currently on the market in my road.

Property 1 has been on the market for about 12 months and is asking £199.950, smaller than ours but needs no maintenance work

Property 2 has been on the market for about 7 months and is asking £190,000, again, smaller than ours but no maintenance work needed.

In feb 2007, a house in our road was sold for £171,000 and the house opposite us sold 7 months ago for £218,000.

RAS

What was so special about the house opposite?