Voluntary Repossession

CrystalIzzy

Hi everyone
I was hoping someone would kindly give me some advice regarding Voluntary Repossession.
My husband and I split up approx 2 years ago. We had a joint mortgage on a house for £135,000, interest only, with £135,000 owing.
We both had debt problems, his were high and in the end it ruined our marriage. After the split, my ex went bankrupt. He then handed the keys in on our house last year.
I found out this morning our house was sold for £99k.
My ex is still under his bankruptcy at the moment. Will they come after me for the balance and costs?
I am a single mum, receiving housing benefit, child and tax credits, and child maintenance. I do work and take home £1000 per month, but my outgoings on my own, including £505 rent, £450 a month childcare fees and £200 a month on a loan + bills leaves me hardly anything.
Can they come after me for the money ?- as I had already moved out before he handed the keys back in a year later.

saveallmymoney

You are liable for the money, and you will be for a long time, just imagine you buy a house with a new partner and then they show up wanting the money.

I think you may need to consider going bankrupt also, make a new start.

CrystalIzzy

Thank you for your help...

I'm not eligible to go bankrupt at the moment, but I expect I will be when they chase me for the money - I'm not even sure they know where I live now.
Should I contact them so I know what I am facing.....or wait and hope it never happens. (I'm guessing not the latter)

Fliss_M

Well. Your aware. So you know it may happen. If they cant find you in 6 years they cant take you to court. So effectively they cant reclaim the debt through the legal system. (not sure how this effects your credit rating) I wouldnt contact them and wait to see if anything hits the mat.

One_Day_Rodney

Fliss M wrote:

If they cant find you in 6 years they cant take you to court. So effectively they cant reclaim the debt through the legal system.

This is incorrect.


From the direct.gov website

If your lender repossesses your home, they'll sell it to get their money back. But if it sells for less than you owe them, they may want you to pay back the rest of the debt (the 'mortgage shortfall').
This is no longer a 'priority debt', which means your lender can't claim any more of your possessions or assets. But they can try to recover the debt for a long time - up to 12 years. The National Debtline website gives advice about what to do if you're being asked to make up a mortgage shortfall.

You may find this very useful - lots of free and accurate information.

http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

HTH

CrystalIzzy

Thanks, that's what I'd like to do..not sure if I will sleep though!
I will have a think, but I am a worrier so will probably end up contacting them just to get it out of the way.
As Saveallmymoney said, it will probably mean I could go bankrupt and start again.
I currently owe £8000 to Lloyds TSB loan at 3.6%
£1100 in overdrafts
£900 to council for housing benefit overpayments (their fault not mine)
£300 to EON

CrystalIzzy

Thanks One Day Rodney, that's great advice, will look at that website next. Whatever happens, I think this debt is coming my way..it's so scary.

Robert_Sterling_3

Fliss_M wrote: »

Well. Your aware. So you know it may happen. If they cant find you in 6 years they cant take you to court. So effectively they cant reclaim the debt through the legal system. (not sure how this effects your credit rating) I wouldnt contact them and wait to see if anything hits the mat.

Will the debt be increasing during the six year period?

silvercar

If you contact them now you will be acknowledging the debt, this means the 12 year clock starts again. Being you have no means of paying other than a token amount to them at the moment, I doubt you gain anything by making contact.

I question the legality of your ex handing back the keys without your agreement. Should the lender have accepted voluntary possession without your signature? Probably not.

Though if you had no means of paying the mortgage at the time, repossession would have occured sooner or later.

CrystalIzzy

Hi Silvercar

I had to agree to the voluntary repossession - I had no choice as there was no way I could afford the payments and the house had been on the market for 18 months with no real interest, so they have had my signature.

Thank you for your advice

Fliss_M

Robert_Sterling wrote: »

Will the debt be increasing during the six year period?

To be honest I dont know. I was basing this on my step-dad who went through tis with his ex. He was at the end of the years (could be 12, am sure he said 6) ans not responding to the letters, they were about to not have to pay it when his ex replied and they had to pay it.

The point I was getting at is there is nothing to be gained by contacting them if you know it will bankrupt you. It ether bankrupts you now, or you chance your arm that you can avoid them and ether dont pay it or go bankrupt later.