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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25410
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I nearly lost my house through bankruptcy in 2010 which I have

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I nearly lost my house through bankruptcy in 2010 which I have a mortgage on we moved out and rented . because at the time I informed all my creditors two companies put legal charges on my house the day I went bankrupt ,although they where on my list of creditors over the last few years have been paying interest only on our mortgage the bank have suggested move back in and pay towards the Capital the mortgage finishes in 2018 when I am 65 they will help with a repayment Mortgage as our interest rate is so low at the moment. What is owed on the house is about what the house is worth to the bank at the moment, could the two charges force a sale as We don't want to move home and make it our home to have to move out again although I am paying them back an amount each month with my pension.
Submitted: 2 years ago.
Category: Law
Expert:  Joshua replied 2 years ago.
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

  1. For the avoidance of doubt, do I understand correctly that you were made bankrupt in 2010 but you have now been discharged please?
  2. If that is correct, have you elected to take back your house from your trustee and have recommenced paying the mortgage?
  3. You mention that there are some other charges that have been secured against the property. Were these charges for unsecured loans or secured loans? Were these loans included in your bankruptcy? Have you made any payments towards these laons since your bankruptcy ended?
Customer: replied 2 years ago.
I was discharged in June 2011 the trustee never took my home because of negative equity so always kept paying the interest only on the mortgage. One was unsecured but because I had informed them it became a charge on my bankrupts the other was a home improvement loan which has escalated with interest as the company went into receivership for Bad practise and the debt was bought on ,in a nutshell they loaned against the house but overloaded its value as I have now been made redundant I am paying them from my pension of £100 per month which is fine. and now giving up my lease on a rented property so we have some security. Our bank want us to move back and pay a bit more off the capital so am moving back in with my husband to do this. All I need to be sure of although the Bank have said there is nothing the charges can do can they ever make us sell the house as it's never ever going to be worth their loan value as they won't freeze interest and the amount that is owing to the mortgage is more or less what the house is worth.just need peace of mind our mortgage will be taken down slightly in the next three years when the term ends in Aug 2018 and they have said they would set a plan for us it's the charge that I am not sure of..
Expert:  Joshua replied 2 years ago.
Thank you. Two further questions if I may.Have you paid any further amounts to the unsecured loan since your bankruptcy was discharged?What does the bank propose to do when the mortgage finishes in 2018? At that point from what I understand you will have some equity in the property if you make some capital repayments, and / or if the property increases in value. What does the bank propose at that point?
Customer: replied 2 years ago.

Yes I am paying them at £100 month when the mortgage finishes there will still be money owed but they can set up an repayment mortgage for an additional 10 years as at the moment our interest is only 1.5% so the bank said do it at the end ,at the end of the day we will have paid off some but dont know how much until then our bank want us to have our home we are just covering all angles

Customer: replied 2 years ago.

The €100 goes to the charge each month the mortgage is up todate with payments but now after moving out of rented can pay more off the capital

Expert:  Joshua replied 2 years ago.
Thank you. You will need to be cautious in respect of dealing with the bank because they do have a power of sale under the mortgage and can exercise the same if you fall behind in your payments. In addition, unless they have confirmed in writing to you that they will provide a further mortgage facility for you at the end of the current term, there is no obligation upon them to do so.If the property is in your sole name and you were made bankrupt then unless you have acknowledged the debt following discharge, the debt will no longer be owed unless it has been acknowledged by you following your bankruptcy. Accordingly, if the property is presently in negative equity, you may wish to consider whether you may be better served by starting again with a new property rather than taking on the old property if it is still in negative equity and starting fro a negative position.Certainly, I can see how the situation would benefit the bank because you're paying off capital will reduce their potential loss of they were to sell the property now but it is not straightforward the doing so would obviously benefit you.If the properties in joint names and your partner was not made bankrupt the course your partner would be jointly liable for the mortgage and this would need to be factored in as well and may make taking the property back a more obvious choice.If you decide to proceed on the basis of the bank's assurance that they will offer a further facility to you at the end of your current term, you would do well to consider requiring the bank to put this in writing to you together with any other conditions you require to confirm as is all too easy for a bank to simply deny or depart from any undertaking to give you verbally. I also think it would be worthwhile you discussing the matter fully with a qualified debt advisor before you make any final decisions because it seems to me the alternative of potentially walking away from the property and starting afresh, in the property in question is not jointly owned could be worthwhile considering as an alternative even if you decide ultimately against it - it is useful to consider the option.As things stand the undertakings given by the bank seem rather woolly and whilst the sense of the plan is obvious to me in terms of the benefit to the bank, it is not so obvious in terms of the potential benefit to you.You may wish to make an appointment to fully discuss the proposals with the free confidential debt charity before you make a final decision. - https://www.nationaldebtline.org/I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
Customer: replied 2 years ago.
The property is in joint names and the bank are aware of that Will get this in writing going to go to the bank now will call you there reply in the morning
Expert:  Joshua replied 2 years ago.
Thank you. If the property is in joint names, this just change the position because you will also need to consider that your coowner will continue to be liable for the mortgage regardless of your bankruptcy so this certainly narrows your options as there is a risk that they could also face being made bankrupt by the bank over the mortgage if the bank were to sell the property and there was a shortfall.Ideally you would still be able to obtain something from the bank but they may be reluctant to commit anything in writing on the above basis.I hope the above is helpful? Can I help you with anything else or has the above answered your questions satisfactorily? If you could drop me a quick message to let me know I'd be very grateful.
Customer: replied 2 years ago.

I have been to see the bank today this was a senior account manager they are fully aware of the situation and this is our 3rd mortgage with them and they cannot afford the adverse publicity so by the time this mortgage term is finished we will all be in a better position thank you

Expert:  Joshua replied 2 years ago.
I am glad that you are happy with what the bank has provided to you. I wish you all the best building some equity back into the property if this is how you decide to proceed. If I can assist any further as the situation develops please do not hesitate to contact me.Best wishes
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