Stressing out from Australia!!!!

[Duffer34]

Hi there i left Scotland in 2008 as i lost my job working for a volume housebuilder and haven't been back since. I currently live in Australia and i am now a permenant resident here but plan to move back in the next 3/4 years as i work for an international group with offices in the UK and my parents aren't getting any younger.

I had a mortgage with Northern Rock (NRAM) for my house that i rented while i was away, due to people not paying the rent and ripping me off and dealing with bad letting agents and a large number of repairs i was faced with no option to post the keys back and voluntary surrender the property.

The mortgage was for 101,000 Sterling, 72 secured and the remainder unsecured, i have checked online and i think the property was sold recently for 52,000 sterling. Because i am o/s i haven't had any correspondence but i am sure to be liable for the shortfall and my parents have had the sheriff officers at their house looking for me. There is now way i can ever pay back 50,000 as i have a young family and just don' t have that kind of money. Going bankrupt is not an option as i work for a PLC and I am will become a Director in the next 2/3 years.

Can anyone offer me advice as i have buried my head in the sand but if i come back to the UK i will have to sort this out. Will i ever be able to get another mortgage, car finance or even a credit card as i am sure my credit rating is destroyed.

Please help

[teaboy2]

Re: Stressing out from Australia!!!!

Regarding Bankruptcy and being a company director, the restrictions placed on not being able to be a company director is usually just for a period of 12 months after the date a court declares you bankrupt. After the 12 month period, the restrictions are lifted and you can be a director.

What was the property secured against?

[FlamingParrot]

Re: Stressing out from Australia!!!!

The mortgage was for 101,000 Sterling, 72 secured and the remainder unsecured,

What does it mean £72k secured and the remainder unsecured? The outstanding amount on a mortgage is secured on the property. Are you referring to a mortgage for £72k plus an unsecured loan for the rest?

i have checked online and i think the property was sold recently for 52,000 sterling.

Lenders have a duty to sell the property for the best price that can be achieved.

If you had to pay mortgage indemnity insurance a the time you took out the mortgage, the insurance company should have paid off the shortfall to the lender, however, that insurance is for the lender not for yourself, so the insurers can still chase you for the shortfall. You may be able to dispute the shortfall amount if you can show that they didn't do this, for example, if the property was sold below the market value of similar properties in the area. Selling at auction is, in theory, considered 'fair', but if the property was sold at auction, it's likely to have been sold for less than it would achieve if marketed through estate agents in the usual way.

You may want to look at this: http://scotland.shelter.org.uk/get_a..._mortgage_debt and https://www.nationaldebtline.org/S/f...s/Default.aspx

Because i am o/s i haven't had any correspondence but i am sure to be liable for the shortfall and my parents have had the sheriff officers at their house looking for me. There is now way i can ever pay back 50,000 as i have a young family and just don' t have that kind of money. Going bankrupt is not an option as i work for a PLC and I am will become a Director in the next 2/3 years.

Although the restrictions preventing you from being a company director only apply while you are undischarged (normally 12 months), depending on your line of work, bankruptcy can affect future employment prospects even after discharged, as it stays on record for 6 years.

Can anyone offer me advice as i have buried my head in the sand but if i come back to the UK i will have to sort this out. Will i ever be able to get another mortgage, car finance or even a credit card as i am sure my credit rating is destroyed.

Probably not for another six years, which is the time the repo will appear on the register, although with credit cards, there are some for people with poor credit.

Sadly, in Scotland they can chase

[Duffer34]

Re: Stressing out from Australia!!!!

Hi Guys thanks for the advice the overall mortgage was 101,000 - 72k secured on the property and the remainder was an unsecured personal loan. Can i apply for bankruptcy from Australia for the UK as i am presuming i need to be in the UK, I am home in July for 3 weeks for my brothers wedding. Also i have no assets in the UK, i.e car, property or valuable, i left with nothing. Would my life in Oz be affect i.e car i have on finance?, again the advice has been great really appreciate this as it was starting to affect my mental health, safe to say i have changed my career and moved out of the construction/housebuilding industry!!!!!!