Selling before bankruptcy/PI

No-one will buy a property that has a mortgage attaching to it unless the vendor can show that the lender will agree to take the mortgage off the property. They do this when the debt is paid in full or they agree to a lesser amount.

So, the answer is yes.

mf
 
but surely it is in the banks interest, it is going to cost them more money ( added to the NE) to get rid of the property and in the end that dept is going to be written off
 
JayPee said:
but surely it is in the banks interest, it is going to cost them more money ( added to the NE) to get rid of the property and in the end that dept is going to be written off
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Since the cash would be transferred directly to the bank and you would not see one cent of it, what would be the point of the exercise.

Also be very careful about what you do with your assets prior to seeking to be bankrupt , do not do anything which might be construed as fraud or an act of bankruptcy as this could be used by a creditor to frustrated your intentions.
 
I'm not looking for any money from the sales but I don't see just walking away and dropping back the keys helpfull to anyone. Plus I was advised by a PIP that one of the properties should be sold.
 
JayPee said:
I'm not looking for any money from the sales but I don't see just walking away and dropping back the keys helpfull to anyone. Plus I was advised by a PIP that one of the properties should be sold.
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It would be very interesting know the reasoning behind that...
 
It's simple,there's a mortgage, to put a stop to that dept the house has to be sold, either by the deptor or the bank. There is no reason the bank would wish to rush this, I would like to close on it asap
 
JayPee said:
It's simple,there's a mortgage, to put a stop to that dept the house has to be sold, either by the deptor or the bank. There is no reason the bank would wish to rush this, I would like to close on it asap
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I still do not see it - you have a property that is NE, you are not going to get anything from it when you do sell and at the same time you are not in a position to cover the NE so the bank are not going to get anything off you in any case - so why bother?
 
The bank shouldnt have a problem with you selling the property but in the event that they do then all you have to do is voluntarily surrender it and let them sell it. I know this is not ideal but if you have made the effort to try and sort the problem out by trying to sell and they still won't agree then you're not really left with much choice are you?

I wanted to sell my property and the bank were fine about it but the co-owner of the property would not co-operate (or pay anything towards the mortgage) so my solicitor told me to stop making repayments and let them repossess the property. I had exhausted all options at that stage. In my second month of not paying them they appointed a receiver over the property to take in the rent. That was about a month ago and i have yet to hear from the bank re further action.

Not sure what they would have done if i was actually living there though.
 
JayPee said:
so, just drop back the keys?
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Well if you're heading for bankruptcy - do nothing, once you are declared bankrupt it will be up to the administrator to sort it out with the bank. I mean the bank will be p@#$% off with you in any case so what, it is not going to matter is it?
 
lol, ye, I suppose. Was thinking that it might save me hassle during bankruptcy.OK thanks Jim and NM.
 
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