Repossession help and advice please

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 and could be as much as 10k short or more...!. 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.

beecher

No, don't walk away as it won't clean the slate - you'll still be liable for the debt as it won't get wiped. Find it incredible anyone would advise you this way! You'll need to contact your lender to find out what would happen if you sold for less than the amount you owe - they'd expect you to come up with the difference.

You need to get professional advice about what to do, but whatever you do, don't just walk away from the situation.

CreditMonkey

Thanks, Thought that might be the case and will get some pro advice but just wanted to see if anyone had first hand experience. Really desperate to get away from where i'm not wanted. What about one of these dodgy buy your house and rent it back companies, not bothered about renting it back just want rid now.

beecher

One of those companies would pay you less, so the shortfall would be greater and the lender won't allow you to sell without paying back the full debt.

What about asking your lender for permission to let the property out - would that cover your mortgage and loan? Or could one of you stay and let a room out? Does mean keeping on the mortgage until the value of the house allows you to sell, and that could be many years from now.

Mrs_Bumble

I agree with above you need to get advice have a look here and contact the organisations concerned

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

Walking away and the house being repossessed doesn't wipe the slate clean at all and you could end up owing more than you think.

Buy and rent back bad idea.

Speak to the organisations on the leaflet for advice.