Vol Repo V selling yourself?

smiales

Hi there,

Some may know that we are thinking we are going to give up our mortgaged house and go into rented due to cost of mortgage and size of house combined.

We stopped paying the mortgage this month but have yet to contact the mortgage company. We are trying to decide what to do for the best and we thought we should get the house on the market to show willing and try to avoid repo but then I just thought that there will be costs to putting it on the market won't there, I'm a bit out of the game now but are Home Info packs actually happening now, if they are thats another reason to not bother putting it on the market. End of the day we are trying to save for a few months rental and I kind of see the selling costs as a waste of money.

What would you do???

P.S for those that don't know myself and OH are due AD in the next few days. :j

RichOneday_2

Any equity likely if you sell yourself?

If so, you could go for a quick sale at auction and end up with more cash than if they do the same thing but take 6 months to get there.

If there's no equity, you can't auction and you can't sell with a shortfall without getting the lender's agreement first.

So, basically, I reckon if reasonable equity get it auctioned or private sale if you think there's any prospect of selling that way. Shortfall likely and you might as well give it back.

With voluntary repossession you are deemed to have made yourself 'intentionally homeless' so make sure your intended destination is signed, sealed and delivered first.

smiales

RichOneday wrote: »

Any equity likely if you sell yourself?

If so, you could go for a quick sale at auction and end up with more cash than if they do the same thing but take 6 months to get there.

If there's no equity, you can't auction and you can't sell with a shortfall without getting the lender's agreement first.

So, basically, I reckon if reasonable equity get it auctioned or private sale if you think there's any prospect of selling that way. Shortfall likely and you might as well give it back.

With voluntary repossession you are deemed to have made yourself 'intentionally homeless' so make sure your intended destination is signed, sealed and delivered first.

Nope, no equity, bit of negative, not totally sure how much, about £5k at the moment but will be more when we haven't paid the mortgage for a while.

So basically, get somewhere for rent before telling the mortgage company that we are handing it back or can I speak to them and tell them thats our intention in the next few months? Reading that back I can imagine it wouldn't go down too well! "We are going to give it back but give us a while to save up soem cash for rent!"

RichOneday_2

True.

You can't really say anything if you want time. If you say nothing, the normal repossession procedures would take several months. If you tell them they would more than likely start straight away for obvious reasons.

Can't really say any more than that.

smiales

RichOneday wrote: »

True.

You can't really say anything if you want time. If you say nothing, the normal repossession procedures would take several months. If you tell them they would more than likely start straight away for obvious reasons.

Can't really say any more than that.

Common sense really, its taking the michael to tell them and expect them to hang around with proceedings. Best get saving then and crack on with moving out.

dalip

I am not good with house issues but if it's in neg equity and gets repossesed what happens to that 5k shortfall.D

RichOneday_2

dalip wrote: »

I am not good with house issues but if it's in neg equity and gets repossesed what happens to that 5k shortfall.D

The £5k (or more) debt is a liability which the lender will try to pursue. Some are more lenient than others but officially the debt is there to be collected.

In reality, in most cases the lender will have received any shortfall from the MIG insurance company, but the insurance company requires that efforts have been made to collect before paying out.

dalip

Ahhhh Ok just trying to get my head round the fact that as soon smiales gets AD they will be back in debt .

Smiales why not wait and see what happens to house prices over the nxt 12 mths.Or is that a stupid question:o D

smiales

Hi there,

I'm not 100% definate on this but as definate as it seems possible to find out but research is leaning towards the shortfall being included in the br as the house was listed as a debtor in the original petition. Other people may be able to explain it better than me but it seems that we will be ok.

RichOneday_2

smiales wrote: »

Hi there,

I'm not 100% definate on this but as definate as it seems possible to find out but research is leaning towards the shortfall being included in the br as the house was listed as a debtor in the original petition. Other people may be able to explain it better than me but it seems that we will be ok.

Hmmmm. I don't know about that. Usually there would have to be some sort of reference point when the debt was crystallized. It could, and probably should, be argued that the debt we're talking about (the shortfall) was incurred after the bankruptcy date.

Logic tells me there has to be a cut-off date because you couldn't expect a shortfall that emerges in 2029 to be covered by the bankruptcy.

And if that logic applies the only cut-off date relevant would appear to be your bankruptcy date.

I'm only guessing here so a call to the OR is probably the easiest way to get the right answer.

smiales

RichOneday wrote: »

Hmmmm. I don't know about that. Usually there would have to be some sort of reference point when the debt was crystallized. It could, and probably should, be argued that the debt we're talking about (the shortfall) was incurred after the bankruptcy date.

Logic tells me there has to be a cut-off date because you couldn't expect a shortfall that emerges in 2029 to be covered by the bankruptcy.

And if that logic applies the only cut-off date relevant would appear to be your bankruptcy date.

I'm only guessing here so a call to the OR is probably the easiest way to get the right answer.

I see your point completely but because the house was in negative equity at the time of br I think we should be covered.

Yes I agree that you would think contacting the OR/IS would be the easiest way to get an answer but the relationship I have with my OR is terrible so don't feel I can talk to them and the IS has answered an anonymous email (no names seemed like a good idea!) saying that the shortfall is covered.

I feel that I may be a guinea pig on this one as no one else seems to be in this position on the forum. Obviously it will be a nightmare if it doesn't go our way but I'm not sure where else I can get definate advice?