Advice Needed

Dark_knight_5

Hi guys, I know i might be going over old ground here, but ive come on here looking for advice. I currently have two BTL properties in NI, one i bought last year right at the height of the boom. I remortaged my first property to put down deposit on 2nd property(£30k), problem is now that the prices have dropped so much i cant sell or meet mortgage shortfall payments each month, both of them are rented out at the minute and i can see no light at the end of the tunnel in the forseeable future, im only 23.
Whats my best option now? Ive been in contact to them to let them know i cant meet mortage payments and see no way out and to discuss a vol repo, there sending out forms for that, but having read other threads im reluctant to sign anything. One of the lenders has been in contact with estate agent over prices in the area etc, they havent got back to me since last week.
Anyone had experience of this or can offer me any advice. Cheers

RichOneday_2

You're quite right, don't sign anything.

Voluntary repossession is usually a bad idea, but talk to CCCS and Business Debtline first.

Are the BTLs in a Ltd company or not?

Dark_knight_5

There not in a limited company. What should i do then in your opinion?

RichOneday_2

Its a personal choice really:

1. Lender Repossession - estimate realistically what a forced sale would realise for the properties. Then add another£5k per property to the shortfall for all the charges and fees. What sort of figure is this? Can you potentially pay this off over a period of time through arrangement with the lender?

If yes, then that is the least damaging to your credit future.

However, if its a figure which is simply unmanageable however you look at it, you may have to look at bankruptcy and take the hit.

It really depends on the amounts involved.