Bankruptcy - Equity Release in House

[janjef]

Hi, In September 2014, I filed for Bankruptcy. Recently the Insolvency Practitioner arranged a House Valuation and has now sent me a letter requesting that I pay £26 k as this is the equty in the property. The house is in my sole name. I am working full time and have just enough money to keep my head above water although may be able ot find £50 or £100 per month by cutting down more if I have to although it is so tight My plan eventually was to try and sell the property a few years down the line for a smaller more affordable one. I am only paying interest only on the house and so will never own it as it stands. I have two teenage kids.My questions are as follows and I will try to keep this short: 1) Can I request a re-valuation? With all the issues worng with this property and comparing to others in my area, I fail to see how they have vauled it so high. 2) Can I make an offer below the £26k? And if so, what are they likley to take? For example, if I offered £1,000 would this be laughed at or will they take £5k or £10k, or any other amount? Like 50% for example? Anyone any thoughts on this at all? 3) What will happen if I can't offer anything? Will the house just then be re-possessed or will they just ask me to sell it? 4) If I do nothing how long is it before anything happens? They have given me 14 days to respond to their request. Thanks for your anticipated help JJ

Edited April 27, 2015 by janjef
Too bunched up. Wanted paragraphs

[janjef]

Hi,

 

In September 2014, I filed for Bankruptcy.

 

Recently the Insolvency Practitioner arranged a House Valuation

and has now sent me a letter requesting that I pay £26k as this is the equty in the property.

 

The house is in my sole name.

I am working full time and have just enough money to keep my head above water

although may be able ot find £50 or £100 per month by cutting down more if I have to although it is so tight

 

My plan eventually was to try and sell the property a few years down the line for a smaller more affordable one.

 

I am only paying interest only on the house and so will never own it as it stands.

I have two teenage kids.

 

My questions are as follows and I will try to keep this short:

 

1) Can I request a re-valuation?

With all the issues worng with this property and comparing to others in my area,

I fail to see how they have vauled it so high.

 

2) Can I make an offer below the £26k? And if so, what are they likley to take?

For example, if I offered £1,000 would this be laughed at or will they take £5k or £10k, or any other amount? Like 50% for example?

Anyone any thoughts on this at all?

 

3) What will happen if I can't offer anything?

Will the house just then be re-possessed or will they just ask me to sell it?

 

4) If I do nothing how long is it before anything happens?

They have given me 14 days to respond to their request.

 

Thanks for your anticipated help JJ

[snowdragon]

hi, welcome to CAG, I am sure someone will be along to help you asap, in the meantime I will flag your message so it can be found

[janjef]

Thank you

[SabreSheep]

Hi welcome to CAG

 

Trying to find the best place to move this thread to (If needed) and to find someone to help you

 

Regards

SS

[janjef]

Hi

 

 

I hope that someone can help me with this question please.

 

 

Was made bankrupt in Sept 2014.

 

 

Just had the trustees of my insolvency contact me and advice

 

 

I have so mnay thousands equity in my house that I can make an offer to buy off them.

 

I have made an offer of £5,000 based on the fact the equity is about £16k.

He told me openly it would costs them about £8k to take to court and would not be until at least December.

Therefore I felt a £5k offer was reasonable.

 

 

I also advised him that if they dont accept an offer,

I would stop payng the mortgage (interest only at £900 per mth).

Which means they would probably end up with nothing.

 

 

My questions is.

If I go down the allowing the house ot be re-possesed route, and the mortage company go and sell the house,

are the insolvency firm entitled to any of the sale proceeds as they are on the documents as legally owning any equity.

 

 

Thanks Jan

Edited May 15, 2015 by janjef
Speller

[dx100uk]

who the company please

 

 

who made you BK

 

 

tell us the full story please

[janjef]

I went to court and filed for persoanl bankruptcy as I persoanlly owed nearly £45k.

 

 

A long story

ex spent all money and put credit into my name.

 

 

Bankruptcy was granted.

 

 

Only asset I have is a house with about £16k equity in it after they valued the house and I counter valued it with local estate agents.

When I last had it valued I was in negative equity so this has been a shock for me.

They have suggested I could buy the equity back form them.

 

 

They are just a normal legal firm who have been instructed by the bankruptcy courts to take on my case

and try to get any money form me that they can.

 

 

legally they own the equity on my house as it stands.

If I sell the house they get all the equity after all costs.

 

 

But if I buy the equity off them I am then free to do as I like with house.

I have made an offer of £5k for the equity but this has been denied.

I dont have any money and this was a loan form a friend.

I doubt I could raise any more.

 

 

if I stop paying the £900 per mth mortage so at least I have some money to rent somewhere later on when am re-possessed,

will the mortgage company sel the house and the equity still go to the legal frim?

OR will the mortgage company just sell the house for what is owed to them on the mortgage?

 

 

This info will help me with my case of buying the equity as surely some money to the legal firm would be better than none.

 

And when I say legal firm I really mean the trustee of the equity.

[dx100uk]

as far as I know the mortgage company have first dibs.

 

 

dx

[janjef]

Ok thanks. But once they take their money back that they have loaned me on the mortgage, I assume then the trustees of my equity would have anything left over after a sale. BUT I was wondering if the mortgage company will just sell it for what they are owed for a quck sale. I guess there is no answer to that until the time comes.

[dx100uk]

I'm not exactly clued up on these issues

but hopefully someone will pop in soon

 

 

.

 

 

dx

[Kz101]

The mortgage company have to sell the house for the highest market value available, subject to offers even if it is more than what is owing. Any credit would normally be paid to you, but since the equity part of the property is not yours, the current holders would get that.