Mortgage Shortfalls after VR in BR advice needed

craigos74

I went BR last month, i'm sending the keys to my flat back to the mortgage company and have sent them a letter stating my intentions. I got a reply back saying stuff about expenses they incure going on to the account and that which is fair enough but they also state i would be liable for any shortfall after the property is sold. I know i've read that any shortfall will form part of my BR somewhere (i think?) are they just scare mongering so i dont go through with it? should i tell the sec loan people ive surrendered the property to?

MrsST

Thanks for posting this.

I had basically the same question in my mind today after we went BR on Tuesday.

We have told Northern Rock what we've done and that we will be giving them the keys back at the end of the month.

I'm worried what happens with the secured loan though as they probably won't get anything from the sale of the house in today's market. I'm just hoping that as we are giving up the house, the loan becomes unsecured and then gets included in our BR.

craigos74

im fairly sure thats what happens although the unsecured loan people are pretty hell bent on getting money out of me ringing on a daily basis but i dont think they can really do anything. not sure if i continue to be liable for the electric and water either until the flats sold. Everytime i get any correspondence i start panicking, i guess theyre just protecting thier interests...or just vultures!

blind-as-a-bat_2

Any liabilaty pre your BR, whether secured or not, goes into your BR once the securety has gone.

As long as you dont sign an agreemant to be liable for it after BR that is