Handing the keys back

BoxMan_2

Hi guys

I've been in touch with the debt charities and they have given me some great advice...but just wanted to double check...

We are planning on moving into rented accomodation pretty soon no assets to speak of mortgage is interest only so pretty much means rent as we have no facility to save at the same time, bought house in 2007 at the peak now got a 2nd homeowner mortage plus c/c's other loans so after conducting a SOA me and the wife are £-81,500 so we are going BR!!

we cannot make ends meet and have a short fall of £-255 each month at the moment and thats been cut back as much as possible...

The question is: is it best to cancel the DD use the money for a deposit and give the keys to the OR at the court and explain we have volentary surrendered the house and want no more to do with it, or is it better to send them back to the mortgage provider?? with an apologetic letter.

What should we do or say to the 2nd charge homeowner loan which stands at circa 32k? again should we cancel and see what happens.

We've budgeted that the rent on our new place will be £950 plus bills so circa £2k per month leaving £1500 surplus from wages can we expect to lose 70% of that figure because we have a decent income in the IPA?

Thanks again peeps

nervousmother

If you are sure you want to give the house up then cancle the DD, save like you have thought about..
when ready to move into rented post the keys to the mortgage company with a covering letter.
The OR will not deal with the property mortgage company or secured loan as they are not covered in your bankruptcy until the property is sold.