Voluntary Reposession

kram99

Hi

I will be giving my keys back to the mortgage company, please can someone advise me on what i have to do. Is it just a case of here you go and send my keys back.

Also i keep reading that i shouldn't sign anything please can someone advise me on what not to sign and why.

Thanks in advance

silvercar

They will ask you to sign that you understand that you are liable for any shortfall between the outstanding mortgage (including arrears and charges) and the sale price achieved.

You know you will be liable for this, but signing shows that you understand. If you refuse to sign some lenders won't accept your keys and will continue as if you still owned the property until such a time as their legal department actually repossesses. Others will accept the keys, as you are liable whether you sign that you understand that or not - it was all laid out in the terms when you took the mortgage.

As I understand it, the only time it is important not to sign is if you intend going bankrupt. Here the shortfall will normally be inculded in your bankruptcy, so you don't want to commit yourself to a post- bankruptcy debt.