Help with shortfall on repossesion

thesimondsfamily10

Weve had our house repossesed (the house was my husbands - in his name) , it wasnt our home it was a house we rented out. We feel behind with the morgage payments as the rent didnt cover the morgage and struggled for 2 years before agreeing to a voluntary repossesion.

The house has been sold for £71,000 at auction, originally vauled at £90,000. We owed £96,000. Two months after the sale weve recieved a letter fromthe lender to say we now owe £34,000 including the shortfall of the morgage, their fees etc.

Can anyone tell us where we stand with this? I was declared bankrupt last year and am just managing to get back on my feet, my husband and i work three jobs between us as well as having a 2 year old child, we dont have luxuries or waste money and in the event we do have spare cash it is spent on clothing for our son, how on earth do they expect us to find £34,000??

We would be extremly grateful for any advice anybody can give us!

A very stressed and worried Simonds family.

beecher2

Have a read of these, and contact the helplines.

http://www.direct.gov.uk/en/moneytaxandbenefits/managingdebt/debtsandarrears/dg_10013261
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=11_mortgage_shortfalls

Radiantsoul

Are you sure that you both owe the money? It seems that if the property was in your husband's name then he owes the money.
I assume that you and your husband have no assets, and it seems like he may need to declare himself bankrupt too. The mortgage company might accept a sum of money in full and final settlement, but it depends on the mortgage company and what they think you can afford. I think you should probably start with the CAB, but I would call or write to the mortgage company first to let them know this is what you are planning to do so that they know you aren't ignoring them. I would also get your husband to draw up a detailed statement of assets, liabilities, income and expenditure.
You may want to try out the bankruptcy forum on here.

Dan_1976

Hello. If it was in his name, then he owes the money. But i think your talking like that as your a married couple and what is mine is yours etc etc.

The only way he can walk away from it is by declaring himself bankrupt. The debt is now unsecured and can be included within a bankruptcy.

THis as you will know, has its issues. Other than that you or your husband at least owes the money.