Negative equity and secured loans

forumman_2

Hi,
I am in negative equity with my first mortgage. I am struggling and wondered if I stop paying my secured loans with picture/WF would they repossess me as they would get zero from any forced sale. Any thoughts

SouthCoast

More info here:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261

AMILLIONDOLLARS

You'd still owe them the money unfortunately, so they would be looking for some kind of payment from you. Hop over to the Debt Free wannabe Board for some advice on how to proceed

Good luck
AMD

silvercar

forumman wrote: »

Hi,
I am in negative equity with my first mortgage. I am struggling and wondered if I stop paying my secured loans with picture/WF would they repossess me as they would get zero from any forced sale. Any thoughts

If they understood that they would get zero and that they would have the costs of the repo and subsequent sale and no way of getting reimbursement, logically they should make the decision not to repossess.

Firstly that requires joined up thinking. The arrears department to be in touch with the department responsible for cost benefit analysis. Secondly the lender will be aware of the message that this sends out.

forumman_2

Thanks for the reply. To be honest I think I'm safe to do it from the paper work/court point of view but I know that WF will be very aggressive including no doubt sending the 'heavies' round. Picture on the other hand seem much nicer.