Repossession - how does it work?

Jojo1daffy

Can I ask where your wife (ex-wife?) now fits in with this? You say the two of you took on the mortgage and had a plan to deal with it (paying of debts, renovation then resale), so unless she has been released from her mortgage liability (because there is no equity to buy her out on) she is also liable for the capital repayment.

MegaMiniMouse

Jojo1daffy wrote: »

Can I ask where your wife (ex-wife?) now fits in with this? You say the two of you took on the mortgage and had a plan to deal with it (paying of debts, renovation then resale), so unless she has been released from her mortgage liability (because there is no equity to buy her out on) she is also liable for the capital repayment.

My wife and I are both aware that we are in this together!

silvercar

If I cannot sell by next July, I will be very tempted to simply walk away from the property, and let the Lender deal with the situation in whatever way they see fit - as I have already said, I am close to retirement, with no pension, and no assets, so Bankruptcy is not a particularly frightening prospect.

Walking away means saying good bye to that 15% equity. Why do that? Do you have any policies that mature or can be cashed in?

Your first port of call should be the lender. Tell them that you won't have the money to clear the mortgage at the end date and that you need them to extend the mortgage for a few years?

Where will you live, if you give up the house?

MegaMiniMouse

silvercar wrote: »

Walking away means saying good bye to that 15% equity. Why do that? Do you have any policies that mature or can be cashed in?

Your first port of call should be the lender. Tell them that you won't have the money to clear the mortgage at the end date and that you need them to extend the mortgage for a few years?

Where will you live, if you give up the house?

One reason why I am starting to consider my options at this point in time is that I have just been given first refusal on a very suitable rental place which will be available around the turn of the year, and for the time being my credit rating is 'tripleA', so I have a chance to get myself 'established' before the balloon goes up next summer.

I think the other points in your reply are covered in my earlier posts.

MMM

PasturesNew

I don't understand why your mortgage seems so significantly different to 99.99999% of others. As I see it:
- you mortgaged on a deal, at a fixed rate until a particular date in 2011
- on that date, you don't need to re-mortgage as you existing loan will simply move onto the SVR

How much different is the current SVR from what you're currently paying? Why can't you just keep paying the mortgage at the SVR rate?

Jojo1daffy

It was an interest only mortgage Pastures that ends next year, I think they were hoping that on selling the house the equity would cover the outstanding capital rather than using an endowment or some other form of investment to cover it, a gamble thats gone wrong apparently...

MegaMiniMouse

Jojo1daffy wrote: »

It was an interest only mortgage Pastures that ends next year, I think they were hoping that on selling the house the equity would cover the outstanding capital rather than using an endowment or some other form of investment to cover it, a gamble thats gone wrong apparently...

The lenders asked how the loan would be repaid, and we told them it would from the proceeds of the house sale. They accepted the risk - the gamble was theirs, and it was the years of reckless gambling by the banks which led directly to the collapse in property prices which in turn has caused the gamble to 'go wrong'.

I don't accept any responsibility at all for the fact that my house has lost value.

In the run-up to the market collapse, it seemed unclear to many many people as to how the runaway price hikes could continue, but the banks' professional judgment seemed to be that it was ok to carry on regardless. We took professional advice, and accepted the advice of the professionals. Who were we to disagree with the professionals?

MMM

dopester

MegaMiniMouse wrote: »

The lenders asked how the loan would be repaid, and we told them it would from the proceeds of the house sale. They accepted the risk - the gamble was theirs, and it was the years of reckless gambling by the banks which led directly to the collapse in property prices which in has caused the gamble to 'go wrong'.

It was also the years of reckless gambling by the banks, and borrowers who thought house prices double every 7 years, which led directly to the insane bubble in property prices we still have now.

MegaMiniMouse

dopester wrote: »

It was also the years of reckless gambling by the banks, and borrowers who thought house prices double every 7 years, which led directly to the insane bubble in property prices we still have now.

Like I said, we followed the advice we were given by people who were professionals in their field.

MMM

Jojo1daffy

The lenders asked how the loan would be repaid, and we told them it would from the proceeds of the house sale. They accepted the risk - the gamble was theirs

You had the idea, you put that idea on the table, they went along with it because of the market conditions at the time. You both (you and the bank) took a risk. I'm not seeing any asking of advice there: we told them it would from the proceeds of the house sale. It's an unfortunate gamble that on this occasion, you lost.

I think all the options have been explored and the consensus seems to be to speak to your lender.