Voluntary Repossesion?

matthestan

Sorry if on the wrong board! quite new! My sis-in-law has basically been told by her mortgage company that her house will soon be in the process of repossesion - she has managed to get a private let at the end of the month and just wants to give the keys back. She has had continous financial problems which arent going to get better so has decided to make a clean break. Can anyone please offer any advice - most grateful.

Mrs_Bumble

If she hands the keys back it will be the same as possession but might eliminate some court costs. The debt will continue increasing until the property is sold and if there is any deficit at sale then your sister will still be responsible for this.

Speak to Shelter
http://england.shelter.org.uk/

Dan_1976

Speak to Shelter as Mrs Bumble has stated. Also talk to the lender, they may allow her to sell it and give her reduced payments until its sold.

Talking to the lender as much as pos will really help.

Also National Debt line are helpful.

matthestan

To be honest the lender not really being helpful - she is getting diffrent stories from different people in mortgage company. They initially offered her to pay half installments but then sent a letter asking her to clear her arrears within 7 days but then sent a writ saying they were now going to recover the house. I presume they will be made homeless within 2-3 months - just before xmas which isnt good. I thought if she was to give keys back they would stop any mortgage interest? She is in Scotland so would shelter still be able to help? Many thanks

iscrimger

matthestan wrote: »

To be honest the lender not really being helpful - she is getting diffrent stories from different people in mortgage company. They initially offered her to pay half installments but then sent a letter asking her to clear her arrears within 7 days but then sent a writ saying they were now going to recover the house. I presume they will be made homeless within 2-3 months - just before xmas which isnt good. I thought if she was to give keys back they would stop any mortgage interest? She is in Scotland so would shelter still be able to help? Many thanks

Nope - the mortgage will continue to attract interest payments. Effectively she is still responsible to pay the mortgage until the property is sold.

She will have to contact Shelter Scotland who can provide advise on the procedures in Scotland.

I would get any agreement made by the lender such as half payments put in writing. It is possible this agreement was made after the repossession process had started.

From memory the Shelter Website for Scotland does not recommend Voluntary repossession as you'll still have to pay for the time you are not there. If the sale of the property does not cover the full cost of recovering the property the lender will then pursue your sister-in-law for the outstanding balance.

Mrs_Bumble

Who is the lender?

What has contributed to the arrears? Is your sister in law claiming all benefit she is entitled to?

The lender has an obligation to help but some of the non high street lenders seem to be making it up as they go along!

Imperitive that you/your sister in law speak to Shelter Scotland asap
http://scotland.shelter.org.uk/

As above the voluntary repossession route is not really what people think and the costs that acrue because of it can be devastating. Also your sister in law will be making herself voluntarily homeless so that can have implications on help with housing if needed.

Speak to shelter asap, they may be able to put this back on track for your sister in law.