Repossession - Stay in House Strategy?

[Cartway]

Folks, can anyone offer thoughts on my situation, perhaps you've been through a similar scenario.

 

I currently 'own' a house on which I pay a substantial mortgage. I will no longer be able to pay that mortgage two months hence and am therefore resigned to a repossession (as it is likely I will also have to go bankrupt).

 

That being the case, I can probably find alternative future accommodation with a friend but not for around 8 months. I'm therefore looking for suggestions on how i may be able to spin out the repo for that length of time. I'll happily go after 8 months but for several reasons - not least that I share the care of 2 children -I would like to stay put until then if possible.

 

Many thanks in advance to all who may be able to help.

[tifo]

i think even if you go bankrupt you can keep your house for 12 months if there are children you look after.

[Cartway]

Thanks Tifo, I'd heard that was the case - not sure whether to get repossessed and then go bankrupt or go bankrupt first. Perhaps that also determines how long one can stay?

[tifo]

i think you go bankrupt and then the Receiver will sell your house after 12 months due to extenuating circumstances.

[caro]

If you go bankrupt and then the house is repossessed, there may be a shortfall which you will then owe. If you go bankrupt afterwards the shortfall would disappear.

 

Why don't you put the house on the market yourself? You would be much better off handling a sale yourself as repossessions are notorious for being sold at low prices. Also, if it came to court you may be able to persuade a judge to let you continue to try to sell it yourself.

 

Would this be of any assistance to you?

 

Homeowners Mortgage Support : Directgov - Home and community

 

Getting help to make your mortgage interest payments : Directgov - Money, tax and benefits

[Cartway]

Hi Caro and thanks for those pointers.

 

I have a couple of concerns about selling myself, namely;

 

i) I only have sufficient funds to pay the mortgage for 2-3 months at most. I'm not sure what the position would be regarding a sale if I then went into arrears.

 

ii) If I sold I would move to live with my Fiancee. I would then be concerned about how her assets could be affected by then going BR.

 

Most of what I read suggests I should go BR before getting married or living with my wife-to-be. This tends to drive me towards resolving house and BR issues before moving in with her. Of course, if there were a way to ensure categorically that her assets were protected then I could sell, move and then go BR.

 

Thanks for the links - I'll visit those for sure.

 

Kind regards,

[out of cash]

you go br first so the mortgage is taken into the bankruptcy order .so wouild all the legal fees charges interest court costs.

 

make sure you dont sign anything after the br date as the lender can make you liable again for any shorfall.

 

i went br 19mths ago and know i am not liable for any shortfall however i would be if i signed something now after discharge.

 

 

Advice given to me by insolvency service please double check as peoples situations can vary on different technicalities.

 

 

regards

 

out of cash

Edited May 17, 2010 by out of cash
ERROR

[Cartway]

Thanks Cash, that's helpful. One thing though - one or two folk are suggesting the house should be repossessed first and then go BR so am getting mixed views on this one. On the face of it the shortfall from Negative equity wouldn't be realised until Repo so could only at that point be inlcuded in the BR. Sounds as though it may be possible to go BR first though and then have the house included in the applicaiton?

 

All the best

[caro]

Maybe best to see a bankruptcy practitioner.

[Cartway]

Thanks folks - does sound like a one-to-one with an insolvency practitioner needs to be arranged.

[out of cash]

i went br and included the mortgage in the bankruptcy

 

after dischrge lenders try to play the game of sending out a form for myour sig to say you are liable for any shorfall costs on mortgage.

 

IF YOU GET ONE OF THESE FORMS DO NOT SIGN IT AS YOU CAN BE MADE LIABLE AFTER DISCHARGE IF YOU SIGN THAT FORM.