Questions and Info relating to Property Issues inc, Charging Orders and Repossession

Moderators: TalbotWoods, JaneClack

By everett
#310553 What are the implications of selling a house at under value to a family member ?
It is looking increasingly likely that we will start missing mortgage payments soon and to avoid possible repossession could sell our property to our son and pay him rent at half what we are paying in mortgage, allowing us, for now to stay in the house and not be worried about repossession.
It would also be a cash sale.
However would my creditors be able to overturn such a sale ? I have been told that if I were to go bankrupt in the next 7 years the O R could force our son to sell the house anyway, looking at the substantial undervalue as debt avoidance ?
Could a creditor move for bankruptcy and get the O R to claim back the sale?
Of course my son could become a private mortgagee on the property through a charge, but this would mean that on paper we still own the house and a creditor could always move for BR or get a charging order themselves.
All we want to do is avoid losing the house for now.
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By TalbotWoods
#310863 OK,

If you are looking at bankruptcy within the next 5 years dont even think about it, if you think you may go bankrupt in the next 5 years don't even think about it.

This is because the OR will look at the value of the transfer, against the assessed drive by valuation and will initially invite the purchaser to pay the difference and if they dont they will then go to court to get it, and if it is refused then, they will bankrupt that person. This they have done in the past!

If you are not going to go bankrupt, then it is up to you what you sell the property for, but it will have to pay the mortgage off completely to have your names removed form the deeds, if not then there is no point as your names will be on them, then charging orders can be obtained, and sales still forced.

As to creditors chasing and pursuing, as you will be remaining at the property, then expect them to try for charging orders, and it will be up to you to prove that the property is no longer owned buy you, and all it will take is one creditor/DCA sympathetic judge to side with a creditor on a CO application to open a whole bag of worms!.

Now if you are looking at doing this please, please, PLEASE seek the advice of a good solicitor, DO NOT keep it a family matter, as you need to ensure that the correct documents are drawn up and that the correct procedures are followed, cos it they are not then it could go barrels up for you.

By everett
#310903 Thanks Tim,
Been on the phone to a solicitor this afternoon and my idea is no go.
Seems the banks have the decks stacked in their favour all ways.
We are prepared to sell the house in around 18 months time and complete the work needed to ensure maximum profit.
I would then like to take up some of those full and finals I get offered on a regular basis.
There is light at the end of the tunnel albeit a glimmer.
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By DuffNCustard
#310943 Might it be possible to take another approach? Call it a loan and secure it on the property? A solicitor would draw up the arrangement.
By everett
DuffNCustard wrote:Might it be possible to take another approach? Call it a loan and secure it on the property? A solicitor would draw up the arrangement.

Hi Duff,
Yes that was suggested by the solicitor .
My son becomes the mortgagee with a charge on the property.
Would give us a great deal of breathing space, but would it be a starting pistol for other creditors to seek a charging order ?
Especially seeing we owe the existing bank ( mortgagee) other money ie loan , credit card and are paying these through our DMP ?
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By DuffNCustard
#310963 Yes it might - but the charge your son would hold would take priority over any that your creditors may seek to obtain via the CCJ route. You need to plan and execute this immaculately. First a default notice must be issued then a CCJ will take a while to process especially if you dispute it - ie nickel and dime the amount etc. Mr Duff's CO took his creditor over 2 years as he took it right to the wire You could be done and dusted whilst any consumer debt creditors are g.rinding through the courts. Nothing ventured - nothing gained - a bold move right up front and you could save your home.
By everett
#310973 Thanks for that Duff.
Just trying to keep the Wolves from the door here, but I am actually resigned to the fact that I am going to have to sell it within the next 12 months to pay off a whole bunch of blood sucking DCA`s who paid next to nothing for my debts.
Cant believe that an OR has such powers, just goes to show that the whole of this corrupt society is owned, manipulated and governed by the fraudulent bankers.
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By DuffNCustard
#311023 With respect selling off your house to pay them off smacks of desperation. Read up on this forum and also vist the CCCS wbsite
and National debtline
and get fully boned up on the ramifications / implications of consumer debt.

On this forum I draw your attention to the DebtMeister Kommandant himslef - Chandjay

plus all the other great Debt Sages who have successfully managed the expectations of their creditors.

Flogging your house is the very worst case scenario - sure thos DCA's would love nothing better than to trouser the proceeds - but want/wish/shout/holler and demand does not translate to hand it all over to them on a plate.
I was £93k in debt - I paid it all off via a debt management plan run by the CCCS - I had a very large amount of equity in my house and am still safefly ensconced in it to this day.

Consumer debt - credit cards, loans, HP, overdrafts etc are considered by the courts to be non priority debts - NON PRIORITY - very important words.

Worse that can happen is that each of your creditors will obtain a CCJ and each of your creditors then obtain a charge on your property. But and its a BIG BIG BUT - it is the court that decides how much you are going to pay - last time I checked the Courts were not able to conjure cash out of thin air. Read up on the websites I've given you the links to - the courts allow you to live first before deciding how much to stump up for your creditors.

Arm yourself with hard facts and information
Apply the knowledge to how you deal with the DCAs
Use this forum to get advice and know-how from battle-scarred veterans
Learn how to have a laugh in the process - there is some fine sport to be had

Keep posting!
By nigpet
#311323 It's important to know & understand how little power & authority non secured (ie non priority) creditors actually have, everett. They'll do their utmost to convince you otherwise but if you know your position & stick to it there isn't much going in their favour - as well as what Duff suggests, also talk to payplan etc on the phone to get a clearer idea of the way forward.