Giving Back Keys

GracieP

hethmar wrote: »

Gracie, to be honest, I dont think that place is truly representative. We have heard a lot more about it since that article appeared and I dont believe it actually sold at all to anyone - the builders seem to have bought up a large house to separate into bedsits and then gone bust - so the "flats" and I use the term loosely from the internal photos which look dreadful - are being sold to recoup the price of the original building.

I do think its very irresponsible of the Nof the W (well, they have a reputation for that dont they).

Fair enough, I guess the original price was just the builders estimate, which means nothing. But it's worth the OP knowing that if the house does get repossessed and sent to auction that it could sell for a fraction of what they owe. Possibly leaving them in a much, much worse financial position than they are in now as they will have to pay rent, shortfall and associated legal and auction fees.

hethmar

I feel the OP has enough on her plate already and needs some positive input.

neas

True but the siutation is deadly serious and we all know the best course of action for the OP would be to sell... if she cant forsee maintaing payments.

Sell at a loss etc.... hoping you can borrow 5-10k on loans/credit cards/parents to cover the shortfall early while its still manageable..

wannabe_sybil

I hope you don't mind me butting in. I am only passing through, doing some research for hoped for house move in a few years time.

However, the OP may find it useful to pop in to the Debt Free Wannabe Board, and the Old Style Board. It is remarkable how the people there can help with a sticky budget.

I hope this post is useful.

Conrad

Ok I have real world experience of this, or rather clients do.

If you go bankcrupt, nothing bad will happen, although the Daily Mail types will give you all sorts of nonsense on this. Giving back the keys and going bankcrupt based on my real experiences means the following;

1) The lender will not be able to persue you for any debt

2) You CAN still operate a Bank account. Clients did so with The Woolwich and others. As ever if you follow every tenet of every rule then I suppose there is a poosibility you cant operate a Bank account, but again thats not the real world experience

3) Life goes on! My Brother went Bankcrupt and was cleared just 1 year later and then took out a mortgage! Sure mortgages are hard to come by for now, but that will gradually change and in any event you probably do not want another mortgage for some years to come.

4) My Brother walked away from a wall of debt and learned to live without debt. Hes now a very happy chap and glad, yes glad he went Bankcrupt.

5) No he did not have anything seized by Baliffs. At the hearing they explained they had a few goods including a car but the order precluded any seizures as the family would have suffered as a result (for example no car for work, no TV for children)


Si in a nutshell you get a lot of clapped out bar room advice on these forums. All I can tell you is what I have witnessed with my own eyes.

hethmar

Charlie, I take it you dont have any insurance cover for your sickness/unemployment ?

Jorgan_2

Charlie23 wrote: »

So what we want to do is give our keys back, rent a smaller house and start a DMP.
My DH went to CAB the other day and they wouldn't advise us as they want us to stay in the house (it's falling down in places).

The CAB probably want you to stay at the property due to re-housing issues. If you make yourself intentionally homeless, the local council do not have to re-home you. Try & speak to the CAB and Shelter to get some advice.

silvercar

Another option would be to stop paying the mortgage now. Use the money you are saving each month to save up for a deposit and advance rent on an affordable rental place. Then let the house be repossessed. The lender will give you time to get on your feet before chasing for the deficit (in any case they can't chase for the deficit until they have sold the property). Once you know the size of the deficit and the amount of any other debts you have, you can make a decision about bankruptcy.

My way keeps you in control and a roof over your heads.

Jorgan_2

silvercar wrote: »

Another option would be to stop paying the mortgage now. Use the money you are saving each month to save up for a deposit and advance rent on an affordable rental place. Then let the house be repossessed. The lender will give you time to get on your feet before chasing for the deficit (in any case they can't chase for the deficit until they have sold the property). Once you know the size of the deficit and the amount of any other debts you have, you can make a decision about bankruptcy.

My way keeps you in control and a roof over your heads.

My only concern with that is that the OP will have to undertake a credit check when renting a property, defaulting on the mortgage may affect their chances of getting a rented property.

teabelly

Contact NR and tell them you are in difficulties. See what they offer. Interest rates are coming down so an unaffordable mortgage now might be affordable a few months in the future if you can grit your teeth and hang in there.

As for the stress of full time working. Have you considered seeing your doctor and having a sick note if it has become that bad? Talk to your boss. If it is due to bullying then you need to start making a complaint against that person. If it is just due to being tired due to kids etc then see if you can work an hour less each day so you get a bit more sleep. Does your work place offer occupational health facilities? If so it is worth making an appointment to see if there is a practical solution to your problems that doesn't mean you have to quit working.