Post bankruptcy. Bank has not repossessed house so still liable on icb report. Can you force bank to sell.

Jane09

New Member
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7
Hi
My husband bought a house with an ex girlfriend in 2006 and they emigrated in 2008. Husband came back 2 years later but ex stayed. They have two children.
Ex has no interest in house and doesn’t want anything to do with it and wouldn’t deal with bank or sign sell etc.
Husband Stopped paying mortgage in 2013 and they started repossession and then stopped it for reasons we do not know.
Husband tried coming to many agreements with bank but bank wouldn’t make any agreements without ex so had no choice and went bankrupt in July 2017 and came out July 2018.
Ordered icb report and it came back with mortgage payments in arrears so contacted the bank and they said they will change it but didn’t and then contacted them again and said they don’t have to as it’s secured debt and not part of bankruptcy.
So he got on to OA and they said it’s a secured debt until it’s sold.
But how do force the bank to repossess ?
As we were planning on waiting the 2 years after bankruptcy and going for a mortgage ourselves. But with the icb saying that we will never get a mortgage.
Any advice or help would be greatly appreciated.
Just don’t know what to do.
Thank you
 

TLO

Frequent Poster
Messages
234
You can't force the bank to repossess. The best option would be for your husband to sell the house. However, signatures from his ex would be needed.

A stalemate like this could go on for years. A very cheeky move would be for your husband to move back into the house, along with you. The house is still in his name, even though he is no longer responsible for the mortgage. If you do this, your aim should be to save your rent money. with a view to improving your financial position, so that it becomes easier for you both to buy a house in time to come. It might also encourage the bank to repossess once they realise that somebody is living there "for free".
 

Bronte

Frequent Poster
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13,632
Well bankrupty is supposed to mean you get on with your life. So if the property is just sitting there you might as well live in it or rent it. If this gones on long enough you might have as much as the Ryans in saved rent and will be able to buy a property in cash !

Jane you should contact Jim Stafford (he's on here) and pay for his advice, he's very good. Best of luck.
 

michaelg

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133
Excuse my ignorance on this but I thought after bankruptcy the OA would own half the house, and the husband is off the hook ?

How come he still ends up still owing the house after bankruptcy ?
 

TLO

Frequent Poster
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234
Yes, the OA owns half of what can be thought of as the beneficial interest in the house. But the OA's half is worth nothing as a result of the house being in negative equity. So the OA isn't interested in the house and takes the view that it's up to the bank to sort out.. And for whatever reason, maybe the bank lost paperwork, the bank has done nothing.

Meanwhile the house sits there in the names of the husband and the ex. The husband can't sell the house without the ex's signatures, which aren't forthcoming. So the only way the house can be sold is if the bank goes to court and is successful in getting a repossession order.

And until the bank gets a repossession order, which could be years away, the husband is entitled to move into the house. It's in his name (and his ex's, who wants nothing to do with it.)
 

michaelg

Frequent Poster
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133
Thanks TLO

So if i understand this right ...........

The husband no longer owes the mortgage or any money to the bank (as its been written off in his bankruptcy)

But the husbands name is still on the house (until the bank repossess )and therefore he can live and/or rent it out.

In years to come , if the house goes into positive equity and eventually repossessed , that positive equity may go to the EX and OA but not the husband ?

It seems a bit peculiar as i thought you loose everything in Bankruptcy and in this scenario he could potentially be making money on the house after bankruptcy.
 

TLO

Frequent Poster
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234
The husband no longer owes the mortgage or any money to the bank (as its been written off in his bankruptcy)
Yes, that's correct.

But the husbands name is still on the house (until the bank repossess )and therefore he can live and/or rent it out.
Again correct. He can move in to it. Renting it out opens other obligations, tax returns, PRTB registration and so on. Renting out might not be the best thing to do. Also, the OA may look for half the rent. And the bank may surface looking for the other half.

In years to come , if the house goes into positive equity and eventually repossessed , that positive equity may go to the EX and OA but not the husband ?
Great question. As far as I know, the OA has 3 years in which to realise the husband's beneficial interest. So if the house is repossessed and sold within 3 years then the husband's share of the positive equity goes to the OA. After 3 years the husband could theoretically end up keeping his half of any positive equity. The ex keeps her half of any positive equity regardless of when the house is sold. With no payments being made on the mortgage it will probably be a very long time, if ever, that the house in question will move into positive equity.
 

michaelg

Frequent Poster
Messages
133
Many thanks,,,,, As far as i understand its very hard for a bank to repossess a house jointly owned when one of the joint owners is abroad.
They have to go to court and prove that they've tried to contact the emigrated person. this can take many years apparently and is an expensive process for the bank to go through.

Its a shame the husbands ICB report is still reflecting the missed mortgage payments, as his mortgage debt has effectively been cleared thru bankruptcy and he should be a clean slate.
 
Last edited:

elcato

Moderator
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3,174
How about writing a letter to the OA telling them you plan to move back in if it's not up for sale within a certain timeframe ? You could try this with the debt collection company. That might grab their attention.
 

Jane09

New Member
Messages
7
Thank you all for your reply’s.

Update :- We got on to a nice guy in the bank who finally knew what he was talking about and he said the house is gone into receivership to be sold. They changed the locks about 6 weeks ago but my husband wasn’t contacted about any of this as they keep sending updates to the mortgaged house he does not live in.
So as it’s in receivership I would presume it overrides the fact it was a family home and doesn’t need to go to court. And will be sold soon fingers crossed.
It’s been a massive learning curve in the last couple of weeks. We genuinely thought the day we went bankrupt was when we were free from the ex to move on with our lives but not with secured debt.

So anyone reading this who goes or went bankrupt until your house is sold you still owe to the bank and the bank can chase after you for it.
Now you don’t have to pay it but it’s not the point. I think people Should be told this.
If they decided not to sell for 10 years there is nothing you can do about it.
Yeah we could have moved back in but we locked up that house 2 years ago and threw away the key and thought that part of our lives was over.
Our situation isn’t that we couldn’t afford to pay a mortgage it was the entrapment with an ex that didn’t even live in the country. We could pay mortgage for years and she could come home and move back in or if we wanted to upgrade or move we couldn’t etc.
and banks would not even entertain a conversation about taking her off it.
So we want to buy our own family home so it massively affected us.
Hope this helps some people.
Thanks again for taking time out to reply. Very much appreciated.
 

michaelg

Frequent Poster
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133
Glad to hear its worked out for you,,,, good luck going forward.

I was under the impression that a bank cannot by law put a family home under receivership, but they must be able to if no-one is living there anymore.
 

Jane09

New Member
Messages
7
Glad to hear its worked out for you,,,, good luck going forward.

I was under the impression that a bank cannot by law put a family home under receivership, but they must be able to if no-one is living there anymore.
Thank you.
Yeah so was I under that impression but seemingly if your not living there it overrides it so happy days :)
 
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