help wanted post repossession ie. proposal to repay lender 70k debt

julesjulesjules

Hi there

Its a long story and I wont bore you but we have had our house repossessed due to my redundancy and now have a whopping £70k debt to contemplate. Its very sad but there is life after.

My question is what happens now, can anyone point me in the right direction? I acted for myself and have limited my legal costs and believe me it was unavoidable. We are now in rented.

I am at the stage where the sale has completed and I have a demand letter from the Lender and a form to fill in with my incomings and outgoings. Our situation is that my hubbys wage (I am not working) only covers rent food and bills with no extras at all in fact we have a £1250.00 overdraft which we max up on every month.

I cant see we have much to hide so I've no objection to filling in the form but I can see we have anything to offer either, and I'm not being daft we dont have any spare money for clothes for the kids or holidays or any kind of extravagance whatsoever. Can anyone advise? Has anyone been in a similar situation? My parents have offered to pay £100.00 per month till we can find me work but after applying for nigh on 300 jobs I havent as yet secured one - the job situation in Bradford is dire an average of 50 applicants per job I heard yesterday.

Anyone who can point me in the right direction would be most grateful. We dont have any assets and our savings have been obliterated just keeping our heads above water they didnt amount to much anyway.

Help Guys!!

Lightattheend

Hi there, I think the first thing you need to do, before completing any paperwork for the mortgage shortfall, is to speak to one of the free debt agencies (CAB, CCCS or National Debtline) for their advice - numbers are listed in stickies on Page 1.

For me the mortgage shortfall following my repossession was what pushed me from trying to sort a DMP to applying for bankruptcy, which has recently happened. I'm not saying its the way forward for you but the debt agencies will be able to advise you appropriately.

Best of luck.

miss_spooky

As LATE said, you need to speak to one of the debt charities BEFORE filling in any paperwork. I've never owned my own house but from reading other posts I believe that you need to NOT sign the "Deed of Acknowledgement" as this will make you liable for any shortfall. Esp if your thinking of BR.

One of the more exp helpers will be along soon to clarify this for you.

Regards

MS.

maxmycardagain

Take advice as advised...

My thoughts?

Depending on the makeup of your debts, assuming a big chunk is the shortfall, you may consider a joint bankruptcy, this would wipe all debts.

Just one thing, did you have any "repo-cover" taken out at the inception of the mortgage? check to see if the shortfall includes or excludes that, lenders dont like to admit it but (as in my case) they got £8K off the insurer, then said "we are obliged to chase you for that" - no your not and no they didnt get it back.

We had a £31,000 morgtage (20 years ago), paid £250 for 3 years then lost the house, the house sold for £21,000 and the lender wanted £12,000 but got £8K off the insurer! we paid £25 a month for 18 months then £2K lump sum...

As I say, it depends who you owe what to

maxmycardagain

BTW, if your shortfall was £70K, the lender would have to go before a high court judge i think, to make you bankrupt