shortfalls after repossession

[sjw]

hi wondered if any one could help when br in april and have just recieved a letter asking us if we wish to but beneficial interest back in the property. the property is in negative equity so we would be allow but we are not sure whether it would be a good idea as in the lone term we know we can not afford to stay here, or has said that if we decide not to it stay with them for 3 years but could stay in house if continues to pay mortgage just woundered what would happen to any shortfalls accured after discharge but before the 3 years are up if the house was repossessed as sure the house will still be in negative equity and will have redemption costs etc. sorry for such a lone post but i know if repossissed while br any shortfalls come under it but unsure about what happens once dischaged . any help appreciated thanx sue

[chris.g]

I should imagine as the shortfall has accrued after br you would be liable. If you buy back any beneficial interest, you're 'buying' the house from the OR so they will no longer have any interest or claim on it.
Hopefully an expert will advise you for definate,

[Cybus]

The best person to speak to in the first instance is your Trustee in Bankruptcy. I may be wrong (And therefore would hope to be corrected) but if you are thinking of giving up on the property, it is going to best to do it before your discharge. Allow rhe mortgage company to value their security and the unsecured balanace will rank in the bankruptcy.

Possibly in bringing the post back up to the top, it will catch the eye of someone with more bankruptcy knowledge than me, who may be able to give a more informed answer to the question.

[chris.g]

I know when we voluntarily handed back our house, the forms that we completed stated that we would still be liable for any shortfall on the mortgage and any secured lending even though we no longer 'owned' the house. I did contact the OR regarding any shortfall and she said that any shortfall would fall into the br. As Cybus says, it's probably better to get things sorted before discharge....Maybe that's why the OR will allow 12mths stay in a property, to coincide with discharge?
I emailed our OR so that I had the email incase of any problems later.
Good luck

[sjw]

thank you both for your advice its much appreciated x sue