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    • Shelby84
    • By Shelby84 13th Apr 18, 4:47 PM
    • 4Posts
    • 0Thanks
    Shelby84
    House taken off us whilst pregnant (due to bankruptcy)
    • #1
    • 13th Apr 18, 4:47 PM
    House taken off us whilst pregnant (due to bankruptcy) 13th Apr 18 at 4:47 PM
    Hi there,

    My husband went bankrupt back in 2015 - we have now been contacted regarding our house (we have a joint mortgage on).

    The bankrupcy people have advised they will be getting the house valued - I called today and spoke with them as I am currently 5 months pregnant and am obviously quite stressed about the possibility of being homeless with a newborn. They advised that me being pregnant does not effect anything and that they will be looking to move quickly as he is due to be discharged in December.

    I had read that if you have children you could get a years grace period before having to move out - they advised not as we have know about this for 2.5 years.

    We believe there is a lot of equity in the house and estimate my partners half to be in the region of £10-£15k so no way I could purchase his share off them.

    A lot of the charities / advise services wonít offer advice as they tend not to once in a bankrupcy.

    Has anyone else been in a similar situation and can offer any advise?

    Thanks in advance & thanks for reading x
Page 1
    • Samsung_Note2
    • By Samsung_Note2 13th Apr 18, 4:57 PM
    • 383 Posts
    • 154 Thanks
    Samsung_Note2
    • #2
    • 13th Apr 18, 4:57 PM
    • #2
    • 13th Apr 18, 4:57 PM
    When were first going bankrupt and with young children,was told that when evicted council will put you into a hostel.

    Id stop paying the mortgage and save for a deposit on rental place.
    If my appalling spelling offends you that much...dont read my posts.
  • National Debtline
    • #3
    • 13th Apr 18, 5:50 PM
    • #3
    • 13th Apr 18, 5:50 PM
    Hi Shelby84


    I'm sorry to hear of your predicament. The references to a year's grace period are more applicable immediately following the bankruptcy order - as you've found, subsequent events such as pregnancy don't oblige the bankruptcy trustee to give any additional extensions.


    In simple terms, they will be looking to realise your husband's share of the property as soon as possible, and they don't have to pay any special regard to the circumstances of others in the household at this point, as based on what they have told you, they deem that you have had enough time to make suitable arrangements.


    As unpalatable as it might be, it would be wise to start thinking about your options for alternative accommodation now. If there are no third parties - such as relatives - who are in a position to "buy out" your husband's share, you should think about how to at least achieve the best possible sale price for the property, bearing in mind that your half of any proceeds will be yours to then use as you see fit towards any moving costs, rental deposits etc.


    Best wishes


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • LeesArt
    • By LeesArt 13th Apr 18, 7:32 PM
    • 35 Posts
    • 42 Thanks
    LeesArt
    • #4
    • 13th Apr 18, 7:32 PM
    • #4
    • 13th Apr 18, 7:32 PM
    What a terrible state of affairs.

    Are your mortgage company able to help you buy out your husband with a loan of some sort.

    Have you asked the trustee if they will entertain a buy out based on 3 valuation average by local agents.

    I do not know if equity release would be an option for such a low amount.

    If I were in your position I would trash the place so they did not realise a penny,
    • LeesArt
    • By LeesArt 13th Apr 18, 7:50 PM
    • 35 Posts
    • 42 Thanks
    LeesArt
    • #5
    • 13th Apr 18, 7:50 PM
    • #5
    • 13th Apr 18, 7:50 PM
    What a terrible state of affairs.

    Are your mortgage company able to help you buy out your husband with a loan of some sort.

    Have you asked the trustee if they will entertain a buy out based on 3 valuation average by local agents.

    I do not know if equity release would be an option for such a low amount.

    If I were in your position I would trash the place so they did not realise a penny,
    • Shelby84
    • By Shelby84 14th Apr 18, 8:49 AM
    • 4 Posts
    • 0 Thanks
    Shelby84
    • #6
    • 14th Apr 18, 8:49 AM
    • #6
    • 14th Apr 18, 8:49 AM
    Thank you for your reply Dennis.

    I will be in a position myself to offer to buy my husbands share - although more than likely not for full market value. However I believe any offer is better than no offer (as the worst they can say is no).

    Do you happen to know if we will be liable to keep paying the mortgage right up until someone actually buys the house? (As I want to do everything above board as possible as I need to ensure I receive my full share of the equity of the house does get taken away).

    I think it is more the limbo that is worrying me with a baby on the way - of not being able to sort out rented accommodation due to still being tied in to paying the mortgage.

    Kind regards
    • LeesArt
    • By LeesArt 14th Apr 18, 9:06 AM
    • 35 Posts
    • 42 Thanks
    LeesArt
    • #7
    • 14th Apr 18, 9:06 AM
    • #7
    • 14th Apr 18, 9:06 AM
    If you can't stay in the property then you may want to use this event to get into social housing, it costs around 40% to 60% less than private renting.

    With a baby on the way and hubby rebuilding hos finances this may be a wise option as every penny will count.

    Also in 5 years you may be entitled to buy your social housing home. These are not all dire, before Osbourne changed it many new developments had an obligation to build 20% social homes.

    If you stop paying the mortgage you will damage your credit record and it may be deemed that you intentially became homeless, so limit your access to social housing, albeit that the trustee paperwork saying they are selling your home should suffice.

    Is there nobody you could use to buy your home or buy out your hubby?
    • silvercar
    • By silvercar 15th Apr 18, 3:48 PM
    • 37,086 Posts
    • 156,228 Thanks
    silvercar
    • #8
    • 15th Apr 18, 3:48 PM
    • #8
    • 15th Apr 18, 3:48 PM
    If I were in your position I would trash the place so they did not realise a penny,
    by LeesArt
    Please don't do this. It would mean that you wouldn't see any of the equity (your share). Also, if you aren't going bankrupt the lender can chase you for any shortfall.
    • Tarambor
    • By Tarambor 16th Apr 18, 3:36 AM
    • 2,658 Posts
    • 1,904 Thanks
    Tarambor
    • #9
    • 16th Apr 18, 3:36 AM
    • #9
    • 16th Apr 18, 3:36 AM
    Do you happen to know if we will be liable to keep paying the mortgage right up until someone actually buys the house?
    Originally posted by Shelby84
    It is a joint mortgage. If you don't pay then you get defaults on your credit file.
    • MEM62
    • By MEM62 16th Apr 18, 11:28 AM
    • 1,527 Posts
    • 1,153 Thanks
    MEM62
    Are your mortgage company able to help you buy out your husband with a loan of some sort.
    Originally posted by LeesArt
    OP's Husband is an undischarged bankrupt so what do you think the possibilities are of him being able to borrow money?

    I do not know if equity release would be an option for such a low amount.
    Originally posted by LeesArt
    Equity release, the last resort of the desperate, is unadvisable in all but a few cases and completely inappropriate in these circumstances.

    If I were in your position I would trash the place so they did not realise a penny,
    Originally posted by LeesArt
    Seriously stupid advice. This would reduce the value of the OP's share of equity and render them liable for a charge of criminal damage.
    • silvercar
    • By silvercar 16th Apr 18, 1:19 PM
    • 37,086 Posts
    • 156,228 Thanks
    silvercar
    Thank you for your reply Dennis.

    I will be in a position myself to offer to buy my husbands share - although more than likely not for full market value. However I believe any offer is better than no offer (as the worst they can say is no).
    Originally posted by Shelby84
    I hope you can buy back the BI, as this will make a big difference to your life going forward.

    Do you happen to know if we will be liable to keep paying the mortgage right up until someone actually buys the house? (As I want to do everything above board as possible as I need to ensure I receive my full share of the equity of the house does get taken away).
    According to the terms of your mortgage you should pay. Any arrears that build up will reduce the equity that you get back. This means that your share is reduced and so is the OR's share. Say there is 30k equity currently, that would be split 15k for you and 15k that the OR would claim. If you build up arrears of say 5k and keep that money aside, you have 5k in the bank set aside plus 12.5k as your share of the equity = 17.5k. The OR has 12.5k.

    Counter intuitively, every mortgage payment you miss reduces the equity and therefore the ORs. This makes it actually easier to buy back the less you pay off the mortgage. Against that is the effect on your credit rating (though your husband's bankruptcy probably trashes that by association). There is also the risk of the lender repossessing if you fail to keep up with payments, and you certainly don't want that.

    If you are on a repayment mortgage it is definitely worth speaking to the lender to see if you can go interest only for a few months.

    I think it is more the limbo that is worrying me with a baby on the way - of not being able to sort out rented accommodation due to still being tied in to paying the mortgage.

    Kind regards
    It is a dilemma. best to work out if you can buy back the equity and go from there.
    • Shelby84
    • By Shelby84 16th Apr 18, 2:40 PM
    • 4 Posts
    • 0 Thanks
    Shelby84
    @Silvercar

    Thank you so much for your reply.

    I hadnít even thought of asking our mortgage provider if we could go interest only for a few months - I will give them a call to discuss this today
    • MEM62
    • By MEM62 16th Apr 18, 3:58 PM
    • 1,527 Posts
    • 1,153 Thanks
    MEM62
    @Silvercar

    Thank you so much for your reply.

    I hadn!!!8217;t even thought of asking our mortgage provider if we could go interest only for a few months - I will give them a call to discuss this today
    Originally posted by Shelby84
    Bear in mind that, when negotiating the buy-out value with the OR you may not have to find the full theoretical 50% of the equity that your OH owns.

    If the OR forces a sale he will have (not inconsiderable) costs. Also, the OR will know that, properties sold under such circumstances are likely the realise less than what could be expected in a 'normal' sale. Therefore, your offer only has to be high enough that it is not worth the OR forcing a sale.

    It would be worth you seeking guidance on this.
    • silvercar
    • By silvercar 16th Apr 18, 4:25 PM
    • 37,086 Posts
    • 156,228 Thanks
    silvercar
    There may also be the option of agreeing a charging order on the property. So you and the OR agree that the BI is say £10k, but the costs are not worth the OR forcing a sale at this point and you want to stay in the home. So everyone agrees that the £10k will be paid in the future, either when you can afford it or when you sell the property for any reason.
    • Shelby84
    • By Shelby84 17th Apr 18, 12:02 PM
    • 4 Posts
    • 0 Thanks
    Shelby84
    Thanks again Silvercar.

    Who would I be best to seek advise from? I called the mortgage people and they basically where just trying to get me to go in and do a mortgage just myself (no point as I donít earn enough to cover the whole cost of the house).

    Would it need to be a solicitor or someone in the likes?

    My partner contacted the OR who advised they arenít able to assist anymore as it has been handed over to a 3rd party (called Mazars LLP) we havenít been able to speak to the relevant person over the phone so are waiting to see if he replies via email.

    Thanks again
    • silvercar
    • By silvercar 17th Apr 18, 3:38 PM
    • 37,086 Posts
    • 156,228 Thanks
    silvercar
    It's the OR you need to negotiate with, so I guess the 3rd party if they have transferred your case.

    Keep an eye on the date. They have 3 years to act. If they miss the date, there is nothing they can do.
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