Voluntary repossession - pregnant and confussed!!!

chez-a-bella

Dear all,

I dont really know where too start....i am new here but I am desperate for some advice!

I live in Northern Ireland and bought a house 2 years ago through the Co-ownership scheme on a 50 / 50 basis, I bought the house for £110,000.

I am 31 weeks pregnant and I am due to go on maternitty leave at the end of Novemeber. I have had too move out of the house as I can no longer afford too live in it...with the increase in household bills etc and it is far away from my family who I need more than ever now that I am pregnant. I am maxed out every month too my overdraft limit. I have moved in with my BF who has a mortgage of his own and I am living there but not paying any bills etc as i am still paying the mortgage, Co-Ownership rent, rates, house insurances etc for my own house. Co-Ownership does not let you rent out the house.

The house has been up for sale for a year now. I have dropped my house asking price £34K in total during this time. I have now dropped too £110,000.

I have looked into the companies who buy houses no matter what and give a quick sale. But I will be definately in negative equity and I am not even sure that my Mortgage company or Co-Ownership will allow the sale. Does anyone know if they would let the sale go through....could i arrange a re-payment plan on the negative equity amount?

My maternity pay will start at the end of this month and I know for a fact that I will not be able too cover the mortgage and co-ownership rent payments on top of car and C/C repayments and everything else.

I am now looking at Voluntary repossession. This is a total last resort and it scares me so much I cant sleep at night. I dont know what to do to start this, but I do need to get the ball rolling now!

What is the process for this. Should I write to Co-ownership and my Mortgage lender (Leeds BS) and tell them my situation in writing and that I am seeking Voluntarty Repossession?

If anyone could help me I would be sooooooooo grateful I am out my mind with worry. I cant see any light at the end of the Tunnel.

Many thanks

Cxx

facingthefuture

I am sure someone will come along to advise soon. Just wanted to say good luck with the baby.

chez-a-bella

Thank you very much for the luck!! That was very thoughtful of you.....
Cxx

silvercar

You really should take advice from CAB on whether voluntary repossession is right for you.

If it is the right thing then the starting point is to make contact with the building society. If you read on the debt or bankruptcy forum you may find a suggested letter. If you contact the lender, they will send you a form to complete, but others have said to be careful of what you sign!

Abbaliz

I also wanted to say good luck to you.

i dont have the answer to your question re the finances and i know this is easy to say but try and not get too stressed for your health and the baby's

at the end of the day, it is only money.

chez-a-bella

Thank you Silvercar ...I have an appointment with the CAB next week....So maybe they will be able to give me more information!!

Thank you Abbaliz...bubs is the only thing really keeping me focused at the moment...Hopefully we can find a some sort of solution to this mess!!

Thanks again too all ....

Cxx

Abbaliz

The baby will keep you smiling and keep you going!

There will be light at the end of the tunnel, even if its a long tunnel !!

There will be people alot worse off than you are now who have come through it smiling and you will too

xxx

chez-a-bella

Awww Abbaliz....I really appreciate your kind words!!!
With some good advice and a proactive approach I am sure I can sort this mess out!
Its not a nice situation too be in ....but like you said ....many other people have been in worse situations than me and they have come through it, so fingers crossed i can too!

Cxx

silvercar

In answer to your specific question, the lender won't let a sale go through if you cannot repay the full mortgage amount, so quick-buy companies won't be interested.

If you do decide on voluntary possession, the lender will come after you once the property is sold, to make up the difference to the full amount owed. They generally allow people time to get back on their feet after the repo, as there is little point trying to get blood out of a stone. In fact, once you have decided that voluntary repo is the way forward, you may decide that there is little point continueing to pay the mortgage if you need to save up for other things (although it will all need paying back in the long run).

chez-a-bella

Thank you for your post Silvercar....

Just one question....so If I do proceed with Vol Repossession .....Do i have too still pay mortgage payments up until the house is sold by the mortgage lender?

But if I choose to stop payments they will add the payments missed too the negative equity and that will be the amount that I have pay back?

Sorry for being a bit stupid....its just so hard too understand all this sometimes!

Thank you Silvercar!
Cxx

CCCS_Matthew

Hi chez-a-bella.

Voluntary repossession may well be the best option for you, although without knowing more about your situation it's difficult to tell. Voluntary reposession can be quite involved, and you really need someone to spend some time discussing exactly how you would go about it and what to expect.

We've got a specific team of mortgage counsellors who are trained to give this advice, so I think you would really benefit from booking an appointment to speak to you. They will help draw up a budget with you, and if they agree that voluntary repossession is the best way forward they will talk you through the process, and also provide advice to deal with the shortfall if you are in negative equity, as well as your other debts too.

If you give us a call on 0800 138 1111 and mention you would like an appointment with a mortgage counsellor as you are considering voluntary repossession, they will book you in at a suitable time. Lines are really busy at the moment, so best time to ring is probably early morning if you can (lines are open 8am-8pm).

Hope this helps, try not to worry I'm sure we'll be able to help!

Regards,
CCCS