Repossession

[draknarz]

Hello,
I was made bankrupt in early 2011, details in this thread: http://www.legalbeagles.info/forums/...-of-bankruptcy

Because of my numerous complaints with the council I am still bankrupt in 2014.

I have a Buy To Let house. The following are secured on the house:
1. Mortgage with HBOS
2. Charging order with HBOS as they repossessed a different house. This order I was challenging (before my bankruptcy) because the house they repossessed did have arrears which was the fault of HBOS, but when I found out their fault which caused arrears, then I quickly made payment to clear the arrears, essentially putting the account into credit. Despite this, they still repossessed and have ignored my complaints.
3. Second charge. This second charge is for a secured loan, it should be around 18,000 but it is presently at around 30,000 - The reason for this is that the solicitor / conveyancer let the HBOS re-mortgage proceed without getting a deed of postponement from the second charge loan company. This I feel was their mistake, yet they then added other solicitor costs for me. Again, I was complaining about this but since bankruptcy I left this complaint as the bankruptcy was priority for me.

I have tried continually to get the bankruptcy complaint sorted out. 3 years later, I am in the same position.

I realise that if I let my house get repossessed then I am going to lose out on a lot of money, but at the same time I am suffering with both stress and depression in relation to the bankruptcy and being ignored etc.

I know that I am responsible for the first debt (mortgage) on the house. The charging order I was aiming to dispute as it was my opinion HBOS should not have repossessed the house since I cleared the arrears and put the account into credit. Also, the house was sold for way below market value.
The 3 / second charge, I dispute about 12,000 of that since my loan was for 18,000 and as the conveyancer did not get a deed of postponement for my re-mortgage, they then proceeded to pay off the loan on my behalf and charge me 12,000 for their legal costs. (subrogation)

I can not sort out the bankruptcy.... I would like to sort out the bankruptcy but I am now at the point where I can not take any more stress. I have had enough stress since 2011 when I was made bankrupt.

So, I am now thinking about making a clean break from all the above legal complications.

If I let the bank repossess my house, can all the secured charges / mortgages then chase me for money, even though I am bankrupt?

I am unsure of what is the best way for me to proceed. I would like to keep the house and end the bankruptcy, but it seems that I am unable to do this.

Any help or advice appreciated! Thank you.

[meellis]

Re: Repossession

I can't understand, if you are still bankrupt (not discharged) then if the house is repossessed then first charge gets cleared followed by second charge and then the receiver takes the rest and shares it to the creditors. If this is enough to clear the bankruptcy then all well and good but if it doesn't then any debt left is written off by the bankruptcy. The thing is if there was any equity in your home the receiver would be trying to force a sale anyway so they are either hanging out the bankruptcy in the hope you can force something out of HBOS or they cannot see anything in it for them so you would have thought the bankruptcy would have been cleared by now, you have been discharged.

[draknarz]

Re: Repossession

Hello, thanks!

No, I am not discharged from bankruptcy. I think the reason I am not discharged is that I sent numerous complaints to the council, also sent complaint to the official receiver as well as LGO.

A Subject Access Request from council a few years ago showed that they enquired as to when the house would be sold.

The house is in negative equity because of the secured charges on the house. Both the chages were in dispute, but I then stopped my complaint concerning the secured charges since I was made bankrupt because I thought the bankruptcy took priority and I had been trying to sort that out.

I shouldn't have been made bankrupt in the first place - for 2 reasons: 1) I disputed the debt 2) I paid £2,500.00 to stop bankruptcy

If I can get the bankruptcy either discharged or annulled then I would like to keep the house. But I am having problems in doing this and see no other way out than to let the bank just repossess the house.

There are many legal problems with the house and bankruptcy and after being ignored by the bank and council etc I do not believe there is any other way I can proceed to put things right, unless somenoe can advise me otherwise.

[Crazy council]

Re: Repossession

Hi

may i ask, did the council bankrupt you JUST for council tax or NNDR.... ( they did me in 2007 ). Also, when you say the solicitors, do you mean trustees solicitors. If so, they are reasonable tightly regulated on there charges and fees. There called statement of insolvency practice,

Is your council wirral.... they are quite bad in these situations.

[draknarz]

Re: Repossession

hi crazy council, ive been reading some of your other posts.. interesting.

yes, the council is Wirral Council. It took me ages to get my SAR from them, and they have ignored all my letters of complaints - apart from just one letter which they replied to, but their reply was about 5 or 6 months late and did not answer any of my questions or complaints.

They made me bankrupt for council tax and not NNDR. (had to google nndr!) The council tax was in dispute as the tenants should have been paying it, wirral council even ignored me when I said that 3 out of 4 tenants would write an affidavit saying that they should have paid council tax. anyway, details about that in my other thread which you replied in about 2 years ago...

when i say solicitors? - i think conveyancer solicitor who re-mortgaged the house without a deed of postponement which meant that HBOS did not have first charge on the house, so the conveyancing solicitor then added approx 12,000 for their legal bill to sort out their error. this has put the house into negative equity - and since I was made bankrupt I felt that it would not be wise in my pursuing the complaint against the conveyancer, also i felt it would not be wise in pursuing complaint against HBOS since they repossessed a different house despite there being no arrears!

Wirral Council have in my opinion caused me a lot of stress and depression as well as potentially a huge financial loss.

I do not know what to do in order to sort this all out and that's why I have asked what I would have to pay if I simply did not pay my mortgage and let the bank repossess the house. I haven't paid the mortgage for 3 months now and am waiting for them to repossess. I do have the funds to pay the 3 months I have not paid, but feel as though I would just be pouring money into a pit and feel that I would eventually lose everything anyway because HBOS are ignoring my complaints, actually, HBOS sent me a letter saying any further communication to them will be put on file... They have not answered why they repossessed a different house despite there being no arrears.

My experiences - all the time I am being ignored and the council, the bank and the conveyancing solicitors do nothing other than ignoring me.

[Crazy council]

Re: Repossession

The council tax was in dispute as the tenants should have been paying it, wirral council even ignored me when I said that 3 out of 4 tenants would write an affidavit saying that they should have paid council tax. anyway, details about that in my other thread which you replied in about 2 years ago...

Hi, if ther was more than 2 tenants that are not related, then its A HIMO, were the LL is responsible for the CT payment. Inj some instances , you can make the tenats pay you it independently of the rent, but the responsibility lies with the LL.

Am currently taking legal action against my council for the bankruptcy,

Just through interest...
1. Do you have equity after the charges and bills secured against the propertys, if so, appox how much #( ie whats your current equity as is )
2. Are the Mortgagee co, currently part of the claim, or separate.
3. who picked the IP, and who is the IP

Am assuming some of the things your questioning above have been done under instruction from the IP ( like house sale )... Question 1 and 3 would allow me to be a bit more helpful with your current situation.

Also, has your trustee given you a buy out amount ? ( equity in estate, minus costs of sales == minimum you can force payment )

[draknarz]

Re: Repossession

Re: HIMO, the tenant living there asked for another AST for her friend, at the time I didn't know that this would make the home into HIMO, but the council are relying on this fact that the home had been HIMO ever since the tenants friend had an AST. Incidentlly, the tenants friend only stayed there for 2 weeks. All of this was offered to Wirral Council by way of affidavit from tenant.

To answer your questions:
1. There is no equity. The additional charges / errors made by conveyancing solicitor (they added on 12,000) made the house to be in negative equity.
2. The mortgage company are not part of the claim in bankruptcy. It is my own choice to think about them letting repossession take place.
3. The IP was chosen by Wirral Council, I can't remember who it is although it is somehwere in Newcastle.

The house sale is not being done under instruction from the IP. I am looking to simply let the bank repossess the house.

Trustee has not given me a buy out amount. There is no equity in estate.

I pointed out to Wirral Council in a meeting with their senior finance manager (mrs. chan) that it would be pointless in them making me bankrupt since I do not have any assets and the house was in negative equity. I did say that I had savings and I used those savings to pay £2,500.00 to stop the bankruptcy going ahead. Because wirral council gave me incorrect details of how I could pay this lump sum, the payment was not made in time so bankruptcy went ahead.

[Crazy council]

Re: Repossession

3. The IP was chosen by Wirral Council, I can't remember who it is although it is somehwere in Newcastle.

MMMM, interesting, but first things first.

Trustee has not given me a buy out amount. There is no equity in estate.

thats good

My advise, Ring the trustee immediately, ask him for the minimum buy out calculation... get it on paper... and ask for a current account statement of all charges and fees, ( dont let them delay the minimum cal ). If you want to see iof there is any chance of keeping your current residence, attack the trustees costs and actions properly, formally through the courts.

[draknarz]

Re: Repossession

I was hoping to attack the initial bankruptcy formally through the courts - but I do not know how.

Wirral Council told me that the costs is around £30,000.00 - something which I can not afford to pay.

I think it is strange that Wirral Council made me bankrupt for a debt that is not mine, in dispute, also persisted in continuation of bankruptcy despite me paying £2,500.00 to them

[Crazy council]

Re: Repossession

I was hoping to attack the initial bankruptcy formally through the courts - but I do not know how.

Thats the mistake i initially made,

Wirral Council told me that the costs is around £30,000.00 - something which I can not afford to pay

Does not matter what the costs are, just the equity in the estate. Its something that only tthre IP can give you, trust me, ring them , ask for it.

IT WILL NOT BE IN THERE IN INTERST TO BE HELPFUL.... depending on the calculation the IP gives you, it may be easyer to settle, then fight the council. It just depends on the other loans and how they are part of the bankruptcy at the mo ( ie creditors )

[meellis]

Re: Repossession

It really sounds as though you are getting nowhere quickly so I can understand how you feel. In my own bankruptcy there was a little argument about equity in the property, particularly due to my parents having an interest but they made an agreement. I decided I needed to hold on to the home as long as I could or I would have lost everything that not only I have worked for but a lot of what my parents worked for to. At the moment I am looking at a mortgage with no endowment, a second charge and no chance of re-mortgaging especially now they are tightening the rules on mortgages. But I have to hold on to the home for my parents sake and when the time comes I will prefer to try and be in control so we can hold on to any equity that might be available. At the moment if you let the house be re-possessed everything will be taken into the bankruptcy estate but you will be free to start again, but from the bottom. You might be able to pursue your grievances against the council and HBOS afterwards and if you win claim compensation but it could be a long and stressful journey so you might give up your house and still be stressed from further battles, tough choice.