Urgent Advice Needed Please About Voluntary Repossession

WorriedMommyof2

Hi everyone, I am new to this site and looking for some urgent advice. I have been reading all Your posts the last week or so regarding BR and voluntary repossession and found its so useful, any help would be greatly appreciated for a few questions I have.

Well.......Where do I start? Here goes......................................

I'm almost 30 years old, married with 2 beautiful kids a boy who is 4 and a 12 month old girl and in extremely bad debt.

To cut a long story short we are in negative equity due to having a 50,000 consolidation loan from picture finance on top of our mortgage almost 2 years ago (settlement figure yesterday 67,000 a joke or what). We also have 5 credit cards between us, a bank loan and couple of catalogues. Our outgoings are higher than our incoming.We are robbing Peter to pay paul every month and has now got to the point where we have no money at all every month.

Our idea was to sell our house and go and rent and with some of the money left (around 20,000) pay picture to reduce payments with themselves. However picture finance have said they will stop any sale of our house unless we were to pay atleast 40,000. To make things worse we had house valued yesterday and it has gone down 15,000 IN PRICE since we took out the loan.

We feel we have no other option than repossession that way C&G will get there 125000 and whatever is left (prob 10,000 at the most) picture finance will have but that still leaves us owing them over 50,000

If we were to be repossessed what would happen with what we would owe picture finance?

My husband is a rep and has to have his car for work would they take his car?

What is the difference between vol repo and BR?

I have alot more to say but didnt want to go on too much on My first post, thanks everyone

tigerfeet2006

Hi and welcome WM. You will probably get more response if you start your own thread. I will ask one of the board guides to do it for you.

WorriedMommyof2 wrote: »

Hi everyone, I am new to this site and looking for some urgent advice. I have been reading all Your posts the last week or so regarding BR and voluntary repossession and found its so useful, any help would be greatly appreciated for a few questions I have.

Well.......Where do I start? Here goes......................................

I'm almost 30 years old, married with 2 beautiful kids a boy who is 4 and a 12 month old girl and in extremely bad debt.

To cut a long story short we are in negative equity due to having a 50,000 consolidation loan from picture finance on top of our mortgage almost 2 years ago (settlement figure yesterday 67,000 a joke or what). We also have 5 credit cards between us, a bank loan and couple of catalogues. Our outgoings are higher than our incoming.We are robbing Peter to pay paul every month and has now got to the point where we have no money at all every month.

Our idea was to sell our house and go and rent and with some of the money left (around 20,000) pay picture to reduce payments with themselves. However picture finance have said they will stop any sale of our house unless we were to pay atleast 40,000. To make things worse we had house valued yesterday and it has gone down 15,000 IN PRICE since we took out the loan.

We feel we have no other option than repossession that way C&G will get there 125000 and whatever is left (prob 10,000 at the most) picture finance will have but that still leaves us owing them over 50,000

If we were to be repossessed what would happen with what we would owe picture finance?

My husband is a rep and has to have his car for work would they take his car?

What is the difference between vol repo and BR?

I have alot more to say but didnt want to go on too much on My first post, thanks everyone

If you go for vol repo then you are still responsible for any out standing debts from the shortfall. If you go BR then ALL your debts are written off including the CC's.

Please ring one of the debt charities and theywill go through all your options with you. Links and numbers in my sig.

Anything you need to know just ask.

fermi

tigerfeet2006 wrote: »

Hi and welcome WM. You will probably get more response if you start your own thread. I will ask one of the board guides to do it for you.

Done. ............

debtmummy

Hi,
You sound a lot like me and my OH,

http://forums.moneysavingexpert.com/showthread.html?t=1207767

We ended up giving back the house to northern rock and our secured loan became unsecured. Speak to a debt advisor we had a great one and it was left with northern rock and endevor fighting it out for the money and the rest becoming unsecured.
my only advise is to find somewhere else to live in the meantime. once we were living elsewhere you are in a lot stronger position as they cant evict you and its easier to see the property with objective eyes rather than as your home.

WorriedMommyof2

Thanks Debtmummy that is what I was thinking. we arent actually in arrears with mortgage company yet just everything else inc secured loan. But this month we will prob miss mortgage payment and start saving a couple of months so we can put a deposit on rented property. Hope You dont think im being nosey asking questions but what exactly did You Do? Did You do repossession or BR?

WorriedMommyof2

Thanks Tigerfeet for sorting out the thread for Me. Im new to this and didnt have a clue lol x

WorriedMommyof2

Hi everyone, we have just worked out our expenditure and our incoming for both wages and child benefit and we bring in 2500 a month and our outgoings on debt is over 3000. This is before food, living costs etc.

Does anyone think this a good enough reason to go BR? We cant sell our home because of secured loan and cant afford to live the way we are. We are stuck in this mess.

debtmummy

hi,
no i dont mind you asking
after speaking to a debt advisor as we wanted to do an IVA, we put the house on the market (as theoretically this would pay off mortgage, northern rock loan, we had a together mortgage and secured loan) last jan and started looking for somewhere else to live. We had an offer within a couple of weeks so put down a months deposit and a months rent on somewhere else. the buyer had stated that he was a developer and would be happy to exchange within a month. At the begin of Feb we moved out, informed the council cut all utility bills etc, then time passed and as we werent paying the mortgage we started getting letters from northern rock about reposession. Eventually in April the buyer pulled out, I phoned northern rock and told them they said that we could either do a voluntary reposession or they would take us to court and we'd have to pay costs. We signed the letter and they took posession of the property within 24 hrs. they paid endevour some money and the rest became unsecured.
Now we are going to be doing BR as we've had our IVA turned down.