Why is it wrong to sign a "Deed of Acknowledgement"?

fermi

debt_doctor wrote: »

Hi,

OK ill ask a question. What positive advantage could be gained by either voluntary surrender of property or signing a deed of acknowledgement ?

DD

Precisely!

Tis only ever in the lenders interest. Or potentially.

If in doubt................ sign nothing.

fiveyearplan

See debt doctor's thread he has just started about voluntary surrender or signing DoA

Lensman_2

I have to disagree with Peachy on this one, at least an a level that does not involve pounds, shillings and pence.

So many people who post about abandoning their mortgage commitments talk about 'handing back the keys'. Me included. Personally it was to allow me to retain some degree of honour and dignity for 'doing the right thing'. The fact that this is worthless to the mortgage company is actually irrelevant. It has more to do with self respect and sleeping at night.

Handing back the keys includes a request from the company to sign a Deed of Acknowledgement.

I would like to understand what the risks are. The benefits are:
1 Sleep-at-night factor.
2. Time is saved that would otherwise be building arrears and suffering further depreciation.
3. Cost is saved in prosecuting possession proceedings.

2 and 3 are, agreed, irrelevant if BR is going to happen.

I do not believe for an instant that the document could be used to force repayment of the amount of a shortfall not repayed from the BR's estate. Although thay may be the intention of it.

debt_doctor

Hi Lensman,

Your post identifies a "sleep at night" factor and honour and doing the right thing for your pro reasons for signing the above.

I admire all of those reasons. It was for that sort of reason that I went, initially in to an IVA. I was not involved with Citizens Advice then but my IVA was born by my'guilt' about my debts and give the lender something.

The response I got for my goodwill was such venom from my creditors that they no longer deserved any of my respect and I started to think of them ( as I do now ) of heartless vultures who dont care in the slightest how you ( I) felt.

There is, in my opinion, nothing to be gained by vol surr. and / or signing a deed.

DD

peachyprice

Lensman wrote: »

I have to disagree with Peachy on this one, at least an a level that does not involve pounds, shillings and pence.

So many people who post about abandoning their mortgage commitments talk about 'handing back the keys'. Me included. Personally it was to allow me to retain some degree of honour and dignity for 'doing the right thing'. The fact that this is worthless to the mortgage company is actually irrelevant. It has more to do with self respect and sleeping at night.

Handing back the keys includes a request from the company to sign a Deed of Acknowledgement.

I would like to understand what the risks are. The benefits are:
1 Sleep-at-night factor.
2. Time is saved that would otherwise be building arrears and suffering further depreciation.
3. Cost is saved in prosecuting possession proceedings.

2 and 3 are, agreed, irrelevant if BR is going to happen.

I do not believe for an instant that the document could be used to force repayment of the amount of a shortfall not repayed from the BR's estate. Although thay may be the intention of it.

Disagree with me all you like Lensman

But you're posting your question on a BANKRUPTCY forum, ergo there is no point is signing it.

If you post over on the DFW or House buying forum you'll get completely different answers.

As to whether it's enforceable after BR, that seems to be unchartered waters at present. I'm guessing the banks got their fingers burned in the last property crash, hence the birth of the DoA, but who's putting their hand up to be the guinea pig for the trial case .

fiveyearplan

I sleep as well as the bankers do.

everdecreasingcircles_2

Hi Lensman,

I signed a `deed of acknowledgement' a month prior to going BR to try and get house on market as quickly as possible and to avoid the horrible repossession notices going in the windows. The mortgage provider seemed to understand this was the only option for us and has made it as easy for us as possible from their end.

The house has just sold and I have received confirmation from my OR that the shortfall does form part of the BR even though a deed had been signed.

Hope it helps.

Lensman_2

everdecreasingcircles wrote: »

Hi Lensman,

I signed a `deed of acknowledgement' a month prior to going BR to try and get house on market as quickly as possible and to avoid the horrible repossession notices going in the windows. The mortgage provider seemed to understand this was the only option for us and has made it as easy for us as possible from their end.

The house has just sold and I have received confirmation from my OR that the shortfall does form part of the BR even though a deed had been signed.

Hope it helps.

Thanks for that.

Out of interest, how long ago did you hand the keys back? From reading your earlier posts, I am assuming about October?

And was the sale value about what you expected or was it lower?

TIA.

everdecreasingcircles_2

Posted keys back and signed deed early November I think, and sorry to say sale value was even lower than we had expected, not enough to even cover mortgage let alone secured loan so altogether a shortfall of about £75k which was why I was so anxious to ensure it covered by BR.

veersix

If you don't mind me asking, who was your mortgage with?