Vol Repo V selling yourself?

RichOneday_2

I've just read your post again. You don't want to go down the volunatry repossession route - just wait for a lender repossession in a few months. You'll get 3-4 weeks notice of the repossession date. Surely, no stress involved in that at all relative to selling yourself.

smiales

I'm a real stress head so whatever I do I will worry it was the wrong decision! In many ways I would like to just ignore the mortgage company completely until we have enough cash saved for renting and then just leave the house and tell them we've gone. I just feel irresponsible doing that, even though it would probably be less hassle than going to an agent, going through viewings and having to do the things associated with selling. Maybe I'm lazy or maybe there is an inherent part of me that puts my head in the sand until it comes to the crunch.

I can see us doing the repossession route but it will stress me out.

deedee_3

Smiales as you have seen on here the stopping paying mortgage, saving money, moving into rented and then telling the mortgage company is definatly the least stressful and easiest of all the options.

There is a wealth of experiance and knowledge on here listen to it, digest it, weigh up the pro's and con's and go with what you must to get your life back on track.

smiales

deedee wrote: »

Smiales as you have seen on here the stopping paying mortgage, saving money, moving into rented and then telling the mortgage company is definatly the least stressful and easiest of all the options.

There is a wealth of experiance and knowledge on here listen to it, digest it, weigh up the pro's and con's and go with what you must to get your life back on track.

Thanks Deedee, god knows what I'd have done without this forum, it has literally led me through the last 18 months. I have no idea how people manage without using somewhere like this.

CG77

Hi all,

I think I must've had this really wrong then. I thought that in order for the shortfall to be captured in the BR I had to write 'possible shortfall' or words to that effect on the SoA. This is why we thought our decision to either keep on the mortgage or not was a 'now or never' type scenario, ie either do it pre BR or not at all. Maybe we wouldn't have been in such a rush to move had we known we could stay in the house, see how it goes, see what the housing market does, THEN if in a few years we were still in negative equity, decide to hand the keys back and the shortfall be written off in the BR.

Or have I totally misunderstood it? If not, it could make a big difference to people going BR at the moment, to know this is an option(unless of course it is common knowledge, just not to me-heehee).

CG. x

RichOneday_2

It does appear Heads you win,Tails you don't lose.

But remember we are relying on one person's interpretation at the IS, even if that was a well considered interpretation.

Oric_2

Lol, i have just found this thread! We lost out business in may and went br in june we are in the middle of repossesion on the house the only difference i can see between us is that we are not in a position to make payments even if we wanted to although that hasnt stopped the mortgage company demanding payments after being told we were currently on benefits etc to the point that we had some one come to the house to help us find ways of getting money out of friends and relatives to pay the mortgage company!

We spent weeks and weeks going between the IS the OR the mortgage company and citizens advice because no one could give us a definative answer on the shortfall.

The mortgage company and their solicitors have made it clear that even though we are bankrupt and included the house in the bankruptcy we will have to pay everything back thats why we have to get friends releltives etc to make payments to bring down the debt. The IS frankly is laughable,, one piece of advice is NEVER ring them. I rang six times asking the same question and got six diferent answers, three diferent ones from the same man. Email them to get a proper response, they have just sent saying that the house is in the bakrupty and mentioned the aknowledgement deed.

We found from the insovency services advice to OR that the OR cannot force you to sign they have to reccomend you seek advice.

So if they have to ASK you to sign to say youll pay after discharge what are the penalties and can they enforce the deed?

fermi

I've been through this several times with the Insolvency Service and (after much pushing) the answer has always come back the same.

As long as you do not create any difficulties by signing anything that says you remain liable after the bankruptcy, then any future shortfall is a debt that can go into the bankruptcy.

The IS updated their site FAQ a while back to address this.

See: If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?

If you continue to live in the property it is likely that you will continue to make payments to the mortgage loan company to avoid the property being re-possessed. When the property is eventually sold any shortfall to the mortgage loan company is still a provable debt in the bankruptcy, even if you have been discharged, as you are released from the debt on discharge.

The same principle applies to voluntary repo shortly after the bankruptcy.

Obviously the mortgage companies and secured lenders try to spin you a line that this is not the case, but the law appear to be very clear on this.

CG77

So fermi,

Was I right in my post above where I said if I'd known this before I could have remained in the house, gone BR, see what the market does, THEN decide in a year or two to hand the keys back if I was still in negative equity and STILL not be liable for the shortfall??

CG. x

fermi

CG77 wrote: »

Was I right in my post above where I said if I'd known this before I could have remained in the house, gone BR, see what the market does, THEN decide in a year or two to hand the keys back if I was still in negative equity and STILL not be liable for the shortfall??

That is the position that the IS have insisted is the case in the examples I've seen. Always best to take your own advice though.

I've PM'd you.