Give 'em The Keys And Walk Away?

zeke

A semi- serious question or two (although the more I think about it...):

I'm not in negative equity yet (although mortgage is about 95% of supposed value at present) but sure its only a matter of time as price continue to fall. Any merit in the suggestion that I just stop paying the mortgage and hand them the keys and then rent somewhere? Whats the pros and cons?

I'm not in arrears, don't really use the house much (spend most of my time at my partner's place) and shelling out the best part of a grand a month while it continues to devalue seems such a waste. What happens when you hand the keys over? What if the BS then sold the house at a price much lower than the outstanding mortgage? Would I be chased for the difference? Sorry, many questions from an ignorant struggling to make ends meet.

~Beanie~

zeke wrote: »

What if the BS then sold the house at a price much lower than the outstanding mortgage? Would I be chased for the difference?

Yes you will. You will also have a repossession on your credit file which will completely ruin your chances of getting any credit for years.

Can't you put it up for sale yourself now?

minimike2

Silly idea tbh.

Just try and sell it, or rent it out.

Dont ruin your life with a reposession on something that you arent even in difficulty with.

zeke

~Beanie~ wrote: »

Can't you put it up for sale yourself now?

In the current climate??

Don't think rentings really an option either- its a bit out in the sticks (edge of a grubby uninspiring little town with not a lot going for it. No college or big industry nearby for obvious renters.

sarah1980

Put it up for sale. You might actually make a bit of money in the process. TBH it would be very irresponsible (and quite lazy) to just hand the keys back, this is the kind of thing that causes lenders to become even more unwilling to lend and while you are still able to pay the mortgage you should stick to that responsibility.

If the market is not good for selling and you don't need to buy anywhere esle, why not rent it out and get someone else to pay the mortgage for you?

If you're really that desperate, go and sell to one of these "we buy any house" companies. They'll probably offer you way below market value (whatever that is at the moment!) but you won't end up with a repo on your file.

Brian_Bullocks

zeke wrote: »

A semi- serious question or two (although the more I think about it...):

I'm not in negative equity yet (although mortgage is about 95% of supposed value at present) but sure its only a matter of time as price continue to fall. Any merit in the suggestion that I just stop paying the mortgage and hand them the keys and then rent somewhere? Whats the pros and cons?

You've probably read about this happening in the US (some States), but you can't just hand the keys back and extricate yourself from the debt (and costs) here in the UK.

sarah1980

zeke wrote: »

In the current climate??

Don't think rentings really an option either- its a bit out in the sticks (edge of a grubby uninspiring little town with not a lot going for it. No college or big industry nearby for obvious renters.

People are still buying/selling homes, despite all the doom and gloom in the news. Yes, ther market is very flat but there will always be buyers it may just take more time.

As for renting, all sorts of people rent, not just the stereotypical "nurses/flight attendants/Students". Many people like you, who think it's a not a good time to buy so they rent instead.

zeke

Lots of "cons" put forward but are there any "pros"? Mortage is around £800 a month and value is probably falling by more than that a month, so why carry on? Must be better things to do with my hard-earned wages?

opinions4u

The lender can pursue you for any loss they make for up to 12 years after repossession.

That includes legal costs and interest on the unpaid debt.

It will ruin your credit file and, in the post-sub prime fallout, you would probably not get a mortgage again until 2021.

A very bad idea if it's avoidable.

TighterThanTwoCoatsOfPain

is this genuinely a serious question? If you give them a repo you will still end up shelling out £800 per month on the loan to cover the lenders shortfall they'll have once it goes to auction...

Not sure there are any Pros tbh.

shoestupid

you will still be responsible for any shortfall if the house is sold for less - basically - you cant just walk away and think that is the end of it - you will still have to pay back your debts - as everyone should.

get it on the market TODAY with a letting agent, if it wont rent then why doesnt your partner rent theirs & move in with you?