Voluntary Repossession

pinksnapdragon82

Hi there,

Does anyone have any links to site with advice about voluntary repossession?

If we decide to go bankrupt we would like to leave the house.
Do we stop paying the mortgage and wait for them to repossess or do we send back the keys??

Thanks

tigerfeet2006

Stop paying the mortgage and save the money towards your deposit and first months rental and moving expenses.

Don't say anything to the mortgage company yet, they will bein touch soon enough. When you move out to the rental then inform the mortgage company and the council. You will get 6 months CT free on the property. If they haven't repo'd the property after 6 months then you will be asked to pay at least 50% of the CT.

pinksnapdragon82

thanks for your advice, do we just had the keys back when we move out which we would do as soon as we had enough cash to go BR or do we wait until they ask for them?
Also when they get in touch do i tell them we are going BR or not?
cheers

stintond

If you are going bankrupt you can tell them , it wont make any difference , you need to move into rented accomodation before you go into bankruptcy in order to pass the credit check for the rental property , once you have been made bankrupt the lender will try to persuade you to go voluntary repossesion , saying it is cheaper and quicker etc.. but beware signing any of their forms because this could leave you liable to any shortfall after the house has been repossessed even though you put the mortgage down as a bankruptcy debt , if you sign a deed of acknowledgement from the mortgage company this equates to a new agreement. They will use this to reclaim the shortfall , they will maintain that the shortfall is still payable but it isnt.
It isnt just a question of handing back the keys , they have to go to court and get a court order to repossess the house.