Help please with Repocession...!

CreditMonkey

Basically my wife wants to leave me. We have mortgage and dreaded secured loan (before found mse, i know i know). She wants to sell and move out, we have started to do bit of decorating but don't really have the time and needs new floor in kitchen etc. We had a valuation from estate agent that is about 6k short by the time you add their fees etc. She has been advised by a friend that we should 'walk away' from the mortgage and secured loan and get the house reposessed therefore cleaning the slate if you like. We would have to rent seperatley anyway as neither of us could afford to buy on our own. Is it that simple does anyone have experience.

we also have 30k in a dmp with cccs.

please help things couldn't get any worse dealing with the relationship breakup and this.

bunny999

If the house sells for less than the amount owing on the mortgage you still owe the difference. It will also make it very difficult for you to ever get credit again,

boredofbeingathome

CreditMonkey wrote: »

Basically my wife wants to leave me. We have mortgage and dreaded secured loan (before found mse, i know i know). She wants to sell and move out, we have started to do bit of decorating but don't really have the time and needs new floor in kitchen etc. We had a valuation from estate agent that is about 6k short by the time you add their fees etc. She has been advised by a friend that we should 'walk away' from the mortgage and secured loan and get the house reposessed therefore cleaning the slate if you like. We would have to rent seperatley anyway as neither of us could afford to buy on our own. Is it that simple does anyone have experience.

we also have 30k in a dmp with cccs.

please help things couldn't get any worse dealing with the relationship breakup and this.

Sorry you are in this situation, it seems to be happening everywhere at the moment.


Bunny999 is right though as they would chase you both for the difference and in all honesty would sell it for far less than an estate agent would. You would be left with the difference of this plus their legal fees. I would get professional advice on this.

Perhaps you could post up a SOA and see if we could help you free up some money. Some things you may want to consider would be ( if its not already) Putting the mortgage onto an interest only one for a while. It would reduce your payments and may allow one of you to take the mortgage over whilst the market improves. You could also get a lodger in to help out with costs of mortgage and maybe do up your property in order to get the maximum benefit from it.

Hope it helps a bit and please realise you are not on your own. Keep posting.
Bob x

Verbatim

Yep, you can't wipe the slate clean by walking away and handing in the keys.. Legally you are jointly and severally liable for all that you have committed to, the mortgage, insurance and any estate agency or auctioneer fees if you walk away. Repossesed properties selling at auction raise far less than their market value and will have interest charges added for the months before they're sold. Any shortfall between what you owe and what is finally raised will be owed by you. If one of you has a job and the other hasn't the one who seems the better bet to chase in order to re-coup the debt will be the one who's hounded......"jointly and severally liable".

I hope you can sort it out before it gets to that. Good luck.

fatbelly

CreditMonkey wrote: »

She has been advised by a friend that we should 'walk away' from the mortgage and secured loan and get the house reposessed therefore cleaning the slate if you like.

Best to get advice from a reputable source!

You may be able to get help from one of the govenment schemes (SMI, HMSS, MRS)

Some lenders (e.g. GE money) have really good assisted voluntary sale schemes - Verbatim is right that sale of a repossessed property nets much less than a sale by the owners, so lenders are beginning to be more helpful to struggling homeowners. After all they don't want to sell at a shortfall then have you go bankrupt on them!

mandi

If your home is repossesed, and sold at a shortfall, the amount remaining on the mortgage would still have to be paid . Repossesion is not any easy way out , as it will effect your credit rating .

The agents valuation is just a guide, and by no means set in stone , effectively you can market a property fo any price you like , however their guides are realistic, in saying that a few years ago , I sold a property which the agent initially in my opinion undervalued by £10 k , because of the state of the place . I took a chance and marketed at £10k more than the valuation , it sold within 2 weeks .

I appreciate that its a difficult market, but you could try selling initailly at a higher price, with a view to a reduction if there is no interest .

Hope you get things sorted soon CM