Abandoning a property

startingover

Hi all

I've spoken to my mortgage company today to confirm I wish to voluntary surrender my property. As I have refused to sign the voluntary surrender form (liable for shortfall if I do) they said they would go down the route of an abandonment.

Basically an agent would call to confirm the property is vacant and then they would change the locks and put a 14 day notice in the window. I asked that after the period of 14 days has lapsed would I cease been liable for the property and she confirmed that I would no longer be liable.

Has anyone else gone down this route? It seems to be the quickest way and avoids having to go to court and court fees etc?

Will the shortfall be included in my BR?

Thanks

Desperate4help

Hi Startingover :-) I haven't gone down this route - but intend to do so, and so will be interested to hear how you get on.

Have you already missed any mortgage payments? I assume you've already moved out? I'm interested as to your approach to prepare yourself for this next stage - I want to make sure I do it all logically and not trip myself up. Any advice or info would be much appreciated!

Thanks
D4H

cabbage

Hi AFAIK it doesn't matter if you abandon the property, have it repossessed or hand back the keys. You will still be liable for the shortfall. The terms and conditions of the mortgage would have been agreed when you either signed the mortgage application or accepted the mortgage offer and I am certain the lender would have covered this situation as part of its standard terms and conditions for lending you the money.

Otherwise, loads of people will be going down this route if they cannot pay their mortgage and walking away without a care.

I think the mortgage lender has up to 12 years (may be shorter in some circs) to start chasing you. This time will run from either

the date you last made a payment
the date the debt became due
the last time you acknowledged the debt

have a look at nationaldebtline.co.uk for further details.

fermi

startingover wrote: »

Will the shortfall be included in my BR?

Yep. Any shortfall liability would be covered by the BR order.

Ingenious_Squirrel_2

cabbage wrote: »

Hi AFAIK it doesn't matter if you abandon the property, have it repossessed or hand back the keys. You will still be liable for the shortfall. The terms and conditions of the mortgage would have been agreed when you either signed the mortgage application or accepted the mortgage offer and I am certain the lender would have covered this situation as part of its standard terms and conditions for lending you the money.

Otherwise, loads of people will be going down this route if they cannot pay their mortgage and walking away without a care.

I think the mortgage lender has up to 12 years (may be shorter in some circs) to start chasing you. This time will run from either

the date you last made a payment
the date the debt became due
the last time you acknowledged the debt

have a look at nationaldebtline.co.uk for further details.

Cabbage I have sought legal advice over this. For bankrupts we would never be liable for any shortfall as long as we don't sign the deed of acknowledgement.. believe me, my lender is trying desperately to get me to sign this and trying every trick in the book!

fermi

cabbage wrote: »

Hi AFAIK it doesn't matter if you abandon the property, have it repossessed or hand back the keys. You will still be liable for the shortfall.

All perfectly fair enough in the normal course of events, apart from the fact that we are talking about someone here who is going to go bankrupt.

That will well and truly squish any shortfall liability. :cool:

startingover

fermi wrote: »

Yep. Any shortfall liability would be covered by the BR order.

Thanks Fermi for confirming this. They were really applying the pressure for me to sign the "official form" which I point blank refused too.

startingover

Desperate4help wrote: »

Hi Startingover :-) I haven't gone down this route - but intend to do so, and so will be interested to hear how you get on.

Have you already missed any mortgage payments? I assume you've already moved out? I'm interested as to your approach to prepare yourself for this next stage - I want to make sure I do it all logically and not trip myself up. Any advice or info would be much appreciated!

Thanks
D4H

Hi

I missed 5 mortgage payments and moved out the beginning of August. They have tried to push me to sign the voluntary surrender form which included the wording that I would be liable for any shortfall.

I don't really think I'm in a position to give you advice as I'm new to the process too but there are many people of here who can and without the benefit of their advice I would probably signed the form.

nev32

Just to say that im in the same boat & have written a letter to my mortgage company with keys also in post & signed myself & my wife with account numbers etc on it giving up house. they said they will accept rather than signing the form they sent us. I think they have had enough of me saying we will not sign theyr's.