legal help required i think

westmids29

Hi all, i have a property worth £160k with a £152k mortgage on it but also a £40k 2nd charge with first plus, if i get into arrears and default on a payment with First Plus, can they repossess the house and is it worth their while bearing in mind how much equity they would get once first charge is paid off.
My situation has arisen due to marital breakdown and myself trying to keep all bills being paid, yet to miss any payments but this month I have income of £3400 and bills and mortgages of £3600 before any food, so trying to see where cut backs can be made.
These 2 charges are on an old marital home that is now let out, do they have any come back on my current residential mortgage also?

Thanks in advance of any help

CCCS_Matthew

Hi there,

If you failed to meet repayments to First Plus they could apply for reposession of the property, by following the same process as your mortgage lender if you were to fall into arrears with them. If they did manage repossession and there was not enough equity to clear the debt, the remainder would then become unsecured.

Have you got any unsecured debts at all? It might be worth drawing up a statement of affairs for the folk on here to look at to get a better understanding if your overall situation before looking at your options.

Regards,
CCCS

westmids29

Thanks Matthew, below is total situation in whole

Mortgages & 2nd charges

Residential £280k paying £1576
BTL £150k paying £741
2nd charge £40k paying £400


Loans

£9000 paying £200

Credit cards total £10k

I then just have normal outgoings, problem has been going from 2 incomes down to 1 and trying to take on all myself, having been my choice to leave the wife did not feel it right to leave her in any financial strife, also as of next month I am due to start paying monthly maintenance of £500 per month.

My income monthly is made up of £2400 net pay cash
£600 rent on BTL and £450 from other sources

Thanks in advance

westmids29

does bankruptcy result in loss of all houses? even if no equity in them?

MrsTinks

More than likely - what is the value of the house? Is there enough equity in the house to cover these loands secured on it?

Depending on the shortfall then it may or may not be better to consider bankrupcy before or after selling the house. I'd really recommend calling CCCS whom Matt is an advisor for so they can go through all your debts and possibilities with you.

MrsTinks

Sorry "houses"

stapeley

HI , Please remember you should continue payments on gas water etc, before any unsecured debts .