Urgent Mortgage Question Please - Help?

CCCS_Matthew

If you try to sell the property, you will still be liable for the full monthly mortgage payment up until the house has sold. So if you cannot afford current repayments, then the arrears will build up and be paid back when the house is sold (if there is enough equity).

Ironically enough, if you decide to hand the keys back, or if the lenders go for repossession you will again be liable for the monthly mortgage payments up until the house is sold. So if it takes the lender 6 months to sell the house once you've moved out you will still be liable for 6 months worth of mortgage payments.

If you're confident you can sell the house within the next few months, I'd say this would give you a slight advantage in the fact that you have more control in what price the house is sold for. If the house goes to repossession, it's likey to be sold at auction. Whilst the lender still has to get an independent valuation of the house before doing so, it's likely to go for a lot less than selling it yourself. In this case, it could force you into negative equity which would leave you liable for the shortfall. Do you have any other debts at all between you?

CCCS

Annie_Johno

Thanks see below

If you try to sell the property, you will still be liable for the full monthly mortgage payment up until the house has sold. So if you cannot afford current repayments, then the arrears will build up and be paid back when the house is sold (if there is enough equity).

Ironically enough, if you decide to hand the keys back, or if the lenders go for repossession you will again be liable for the monthly mortgage payments up until the house is sold. So if it takes the lender 6 months to sell the house once you've moved out you will still be liable for 6 months worth of mortgage payments.

If you're confident you can sell the house within the next few months, I'd say this would give you a slight advantage in the fact that you have more control in what price the house is sold for. If the house goes to repossession, it's likey to be sold at auction. Whilst the lender still has to get an independent valuation of the house before doing so, it's likely to go for a lot less than selling it yourself. In this case, it could force you into negative equity which would leave you liable for the shortfall.

Do you have any other debts at all between you? Do you mean joint debts? or just debts each? No other joint debts (only the mortgage), both have unsecured loans/cards independently of each other. Why? does this have any bearing??? Thanks again

CCCS_Matthew

Potentially yes.

Had you made provisions to cover the unsecured loand and cards once you've moved out from the UK?

Annie_Johno

Yes leaving enough money to cover loans for 12 months. Then when I come back on holiday say in 12 months time I will probably have to file for BR at that time. Worst case scenario in Aug 2009 would be house did not sell arrears of £7800 plus costs. That I have absolutely no money left to pay my 2 loans anymore.
Hence BR may be my only solution in 12 months time. What you think?

Annie_Johno

bump bump,dont forget about little me,

CCCS_Matthew

It's difficult for me to give you indepth advice via this forum. I think you would definitely benefit from having an appointment with one of our mortgage counsellors who can go through all this with you. Once going through your financial situation in a bit more detail they would be able to discuss your best options for the property as well as bankruptcy.

If you ring our helpline on 0800 138 1111 and speak to an advisor, they will be happy to book you an apppointment to give you the advice you need.

Regards,
CCCS

Annie_Johno

Hi I have sent you a PM.
Thanks for all your advice.