walking away from mortgage???

meandbex

Can someone please tell me how i could walk away from a mortgage? Is it as simple as handing the keys in as it were???????

I assume that i would still have to make monthly payments?

The house is in a £27000 negative equity situation after we bought it only 11 months ago.

how would it affect me in geting a council house, bearing in mind that i am still on a housing list and registered at the in laws so i could technically get a council house???

Only reason for this is is that my partner is on maternity leave and im struggling to pay other bills as well as on top of paying ex missus for 2 children ihad with her. Some past debts have reared its head to the tune of £10k and im thinking of going bankrupt

wouldi have to go bankrupt first or walk from house and wait to be pursued for the £27k then go bankrupt?

help appreciated. What are your rights at work Follow this link to read the review of the Guide to your Rights at work, published by Lawpack

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betmunch

I think if you walk away from the house you will be classed as intentionally homeless by the council and therefore seen as less needy than someone else. Check with the housing department of you local Council.

You cant just walk away anyway, they house would then be sold and the lender would come after you for any shortfall.

If you are going to go bankrupt take propery advice from a bankruptcy practicioner.

Good Luck with it

beecher

You'd be chased for more than £27,000 as the house would be unlikely to be sold for the value you think it is worth if you walk away. It'd be repossessed and you'd have costs involved in this.

I think you should get professional advice, and post on the Bankrupcy threads too.

Radiantsoul

You would probably need the mortgage company to commence the action to get to the top of the council waiting list. You would also require bankruptcy to wipe out the shortfall debt you would owe.

The other option is to speak to the mortgage company and try and so some sort of deal - or go interest only for a bit. Could try something similiar with your ex too. If your partner is able to go back to work then presumably the mortgage becomes more affordable.

I suppose it depends if you have a short term cashflow crisis or no hope of repaying the debts.

leftieM

meandbex wrote: »

how would it affect me in geting a council house, bearing in mind that i am still on a housing list and registered at the in laws so i could technically get a council house???

Is that not attempted fraud?

Dan_1976

It is a simple as handing the keys back and you just stop paying. They will take it in to possession and sell it. Fees and the amount of mortgage uncleared will be outstanding and owed by you.

The only way to get rid of this is to go bankrupt. If you go bankrupt the property and secured debt is outside of the bankruptsy. However the amount you will still owe can be written off as it would be unsecured.

I would get further info from the insolvancy department (go to the official government one not a private debt company).

Good luck

adandem

Radiantsoul wrote: »

You would probably need the mortgage company to commence the action to get to the top of the council waiting list.

.

The new system does not operate on a 'list' basis, they are auction style allocations. You have to be eligible to 'bid'. That's how they work in our LA now anyway;)

If the child on the way is your first, you won't necessarily be offered a house. My niece has to come out of private rented and she'll be lucky if she gets a maisonette.

TBH, I don't think (and I hope), you won't get away with saying you've been living with your in-laws. You've been paying council tax I assume at your property? wouldn't they find you on their records?

hearts

If you are seriously going to walk away then just stop paying everything and wait for the outcome. You might get quite a time out of it before all reaches its inevitable conclusion.
Stay happy and don't let it get you down. ;-)

Dan_1976

I have not paid my mortgage since Nov 2008. They have still not taken it back! I am bankrupt and will n ot pay a penny back the the lender, My main lender will be ok I think the 2nd charge will be short.

However you will or may struggle with the council list. I had to pay 6 months in advance on a private rental basis!

benjo

Re council housing. Different local authorities have slightly different rules, but essentially they run a points system, the more points you have the more chance of getting a property. (either by list, nomination to social landlords or bidding).

You get points for various things, over crowding, property being in a poor condition, suffering abuse/harrassment, property making your disability/illness worse blah blah blah and those facing eviction.

If you walk away from your home - you may be considered to have made yourself deliberately homeless, contact the council housing advisor, they will tell you that you must stay in your property until you are evicted, only then will you be considered for emergency accomodation. (bed and breakfast hostel).

On the issue of being registered at the inlaws, rules regarding overcrowding are tough, assuming your inlaws live in a small 2 bed terrace, living room, kitchen, bathroom, then 2 couples (in laws and you) + 1 baby would not be considered to meet the regulations on overcrowding - check out your local authority website. It might feel overcrowded - but technically it isnt.