Hand back Keys to Bank - Need advice

My brother's house is up for sale at the moment and nobody has even come to look at it. He does not live in this house. He built it to sell on. But he will put in a kitchen, floor coverings, etc. and rent to us. He cannot afford to do up his house and let us live there for free.
The house next door to us was also built for resale and has been on the market for nearly 2 years with no offers.
This house is not suitable for renting as I have previously said that its needs landscaping and fencing and worst of all there is problems with the septic tank which I cannot afford to fix.
What happens if my house does not sell - what will the banks do then??
Is there anyway of capping the repayments now?
 
Sorry to hear of your extremely difficult circumstances.

Shindig said:
I have been told by mabs that the bank will not reposess this house as in the country word gets around and if people know that the bank took a house from a lone parent with 3 young kids - nobody will buy it.
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I don't think this is good advice from MABS. Banks have repossessed houses in difficult circumstances before, and there is always some bargain-hunter happy to buy at a discount, regardless of what kind of publicity storm will ensue.

It does sound like you'll have little choice but to sell. Once the dust settles, you can see where that leaves you. If you don't have any other assets or income, there is little that the bank can do regardless.
 

I'm kinda suprised that someone can sell a house and then apply for council housing. But that's a debate for another thread I suppose.....
But yes, go see the CWO officer. There is help and advice out there if you know where to go

Shindig said:
I have been told by mabs that the bank will not reposess this house as in the country word gets around and if people know that the bank took a house from a lone parent with 3 young kids - nobody will buy it.
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No chance, if the bank repossess the house they will try to sell it quickly. This could mean a bargain price and people will be circling like vultures if a bargain comes up. Sure I've seen posts on this site asking for info on where to find lists of repossesed houses.

Now if your family were feared and dangerous criminals and the Criminal Assets Bureau seized your house, people would hesitate to buy for obvious reasons.
But this doesn't apply here, your house could be snapped up if the bank sell it cheap to cover the debts. I realy don't know where you got this idea from
 
micmclo said:
I'm kinda suprised that someone can sell a house and then apply for council housing. But that's a debate for another thread I suppose.....
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It's not just anyone, it is a mother in financial trouble who cannot afford the roof over her head, and has three young children. If she had no children the social worker would not get involved.
 
I need a little more information if you feel comfortable giving it:

1. What is the value of the house?

2. What is the mortgage outstanding?

3. What is the term of your mortgage?

4. In whose name is the mortgage- yours and his or his solely?

5. Where were your court proceedings and what form did these take? In Ireland or England, a property adjustment order or jud separation or divorce?

6. When the court proceedings were heard what maintenance was he ordered to pay?

7. Have you sought legal advice about going back to court for a new property adjustment order in relation to the new circumstances?

8. Have you gone to meet your bank manager, asked for a stay on repayments for a period or interest only?

9. Would you be able to rent the house out- is there a market for this?

Hopefully if you are able to provide the above information we can help more or make other suggestions.
 
Replies to your questions part 2:

1. 280k - last valuation done last January - the estate age did say that I'd be lucky to get this price because of the amount of work which needed to be done.

2. 330k approx

3. 25yrs. 23yrs left on term.

4. Joint names.

5. Divorce proceedings took place in England - absolut July '07. I instigated ancillary relief proceedings. Final court hearing May '08. Court ordered that he pay my legal costs and a property adjustment order. Because ex did not show up for court he could not order for his name to be taken off the mortgage only the title deeds. Judge did not make an maintenance order for our kids (which I thought was strange) but he did make one for me for the rest of my life or until I got married again.

From what I can understand the judge in England can make an order but cannot enforce it over here - I'm open to contridiction on that as I keep getting conflicting information.

6. pm'd you on that

7. No. Because I cannot afford it if he does not pay the maintenance which was ordered.

8. No. But I did ask my solicitor here if this can be organised with the bank - so we're waiting the bank's response.

9. I have'nt asked that question as there are problems with the house and also I probably would not get rent allowance for another property if I did rent here out.
 
What I meant was if the property was transferred to me then I still cant pay for it unless he paid the maintenance which was ordered.
 
This is a mess.

I cannot understand how a court would make a property adjustment order which would keep your name on the mortgage in circumstances where you cannot pay it yourself.

I'm also amazed that no maintenance order was made for your children albeit that that is beside the point.

In the circumstances I wonder if the matter should be revisited in the English courts. Is it too late to appeal the matter?

You need to seek legal advice on this straightaway. We have the Legal Aid Board for people who cannot pay for private legal advice- is there a similar system in the UK? In any case I presume that you can at least make a phone call to your UK solicitor and get some preliminary advice.

In the interim you need to meet with your local bank/BS manager and explain the situation and press for a temporary stop on the repayments.
 

I believe this is the equivalent in the UK: http://www.legalservices.gov.uk/

Or at least, they might be able to point you in the correct direction.
 
Hi

Id agree with Vanilla try and get back to put mortgage on hold for 6 months(this is max I think)

I did this recently with Ulster Bank

Also after that you can go interest only this can be up to 5 years this will knock my mortgage from 820 to 550.

I will have to pay off the mortgage over the original term which will increase my repayments when I go back to normal capital and interest repayments.

However it gave me some breathing space which would be great for you

Hope this helps
Noel
 
ClubMan said:
I doubt that it would work for the original poster so. With significant arrears already I doubt that any lender will let them take a repayment break.
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You could be right especially given the fact that at the moment there is no proposal afoot that would suggest to the bank that when the payment break is up things will be different.

I have had a client who, in some arrears, did manage to persuade the bank for a payment break. She went armed with a proposal as to how after the payment break she would be able to repay though. Perhaps the suggestion to the bank that you will be pursuing your ex for the arrears through the courts or some other proposal?
 
Hi there

Yes true what about ex's parents they surely have some conscience and would miss not seeing there grankids.

I had a friend in similiar circumstances and this worked for them

Maybe they could put pressure to bear,
Noel
 
Hi all
Thanks a million for all your replies.

I have tried his parents on numerous occasions. They have tried to speak with him but no joy. There is very little contact between them for the last 2 years. So I'm being told anyway because his parents live in Australia so I cannot say for sure. The last time I was speaking with his mother, she told me that she did not even have a contact number for him and did not know where he was working either.

Property Adjustment Order: He made this order because if I was in receipt of the weekly maintenance which was ordered then I would not have any problems paying it off and the arrears.

Appeal Order: The appeal had to be made within 14 days from the date of the order. I am presuming that it can be appealed down the road but I do think that it is a pointless exercise as ex-h is making it very clear that he will not pay what was ordered and is going to extreme measures to ensure this.

My English solicitor is having serious problems getting to speak with somebody in the insolvency agency who is dealing with ex-h. I have asked him to send on the statement of income which we received prior to final hearing so I am hoping that this will make a difference. Seemingly a trustee has not been appointed for ex-h yet which seems strange as he was declared bankrupt on 1/7/08.

There is no free legal aid board in England. They need to be paid back once the case is complete. At least with the solicitor I have already he has been paid some monies already so if ex-h ever decides to pay costs then there will be funds there to pay for his services.

I can try the bank for a repayment break - I think I asked about this before with them but I cannot remember the answer.

Thanks for all your help

Shindig
 
OP I am very sorry for your circumstances, I offer different advice, you are wasting you time going after your ex, it will only cost you time, money and frustration, a man that does not want to be found will not be. There is no magic wand or law court in the world that can get someone who can move country/disappear/hide earnings. I think that you should go down the route of meeting the bank and telling them you are not making any more payments, they will then bring about proceedings to get you to leave the house, it will take them quite a time and you can then arrange to get state housing/rent allowance or whatever, yes you will owe the bank for the difference between the sale price and the debt but if you are on a low income and in rented accommodation I don't see any bank wasting their time chasing you, hopefully they will go after your husband but I doubt it but if they do they can afford to chase him. If they give up on the debt make sure that you never acquire any assets (you need to know the time limits) or marry etc. I know that the banks in the UK waiting until the six years was nearly up (I think the statute of limitations was that long) and then they went after the people who had now gotton back on their feet and some had even bought property. As for your ex, if he feels you are backing off, he may start again, marry acquire property/assets etc, it's hard to run forever. Then is the time to go after him. You need to know if the maintenance order you now have will be enforceable in arrears and if it is you may be in for a windfall in the future. Best of luck in this desperate situation and remember there is always light at the end of the tunnel.
 
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