reposession advice.

movingtousa

I’ve moved to America and married a girl who lives and works here. I cannot rent out or sell my property and the payments are beginning to become a struggle. The property has been on the market for two years. I am considering declaring bankruptcy or ceasing to make any more mortgage payments so the house is repossessed. I need to know if this will impact my credit rating in the US or affect my wife in any way. Can the government force my wife to take the payments over from me?

g_attrill

I am not 100% certain, but I would be very surprised if you would be affected in the US at all. And if you mean your wife in the US, if she wasn't ever involved with your new house they can't come after her for anything.

Question - why can't you rent or sell the property? Are you in negative equity and trying to sell at your outstanding mortgage amount? It might still be priced too high.

Either way, it's probably best to not completely walk away from everything even if you have no current plans to live back here. I think you can be chased for a repossession shortfall for up to 12 years, whereas if you managed the repossession you could be clean in a shorter period, leaving the UK open as an option in the future.

movingtousa

Thanks for the reply. I tried to rent it for quite a few months and only got DHS applicants. We would rather keep the property empty then risk it being ransacked. I'm selling it at a very reasonable rate, over £12,000 less then I paid for it five years ago. It's on for £73,000 but can't seem to get anyone though the door. I think the area has a great deal to do with it as well as the current economy.

Doozergirl

Would you show us, see what else could be done aside from handing back the keys? If it's repossessed then it will ultimately only sell for what it was ever worth plus you'll be hit for all the other associated costs of the repossession which would be a lot more than just the estate agent fee?

You won't be able to post links but you could tell us the property number on rightmove or put spaces in the address so it isn't an address anymore, iyswim.

Annisele

movingtousa wrote: »

I tried to rent it for quite a few months and only got DHS applicants. We would rather keep the property empty then risk it being ransacked. I'm selling it at a very reasonable rate, over £12,000 less then I paid for it five years ago. It's on for £73,000 but can't seem to get anyone though the door. I think the area has a great deal to do with it as well as the current economy.

Do you think that possibly you are being unreasonably picky with your tenants?

The fact that somebody is receiving state help to pay their rent doesn't necessarily mean that they'll trash the place - and conversely people who don't receive state help aren't guaranteed to be model tenants!

If the area isn't great, that might mean that it's more realistic to try to rent the place to people in receipt of state support.

Running_Horse

If you're not getting any viewings it is overpriced.

clutton_2

sell it at auction and then come to a payment arrangement to pay off the outstanding loan with your lender.. they may be keen to come to an arrangement because they know full well that if you are abroad they will almost certainly never get their money if you do not return to UK

MobileSaver

movingtousa wrote: »

We would rather keep the property empty then risk it being ransacked.

You would prefer to keep it empty, allow it to be repossessed and you be chased for up to 12 years for the shortfall debt rather than take the risk of getting less than perfect tenants?!?

Sorry but that sounds ridiculous.

As you'll know, depending on whether your wife is a US citizen or just a permanent resident it could take between 2 and I think 5 years for you to gain permanent residency in the USA. Anything could happen in that time frame and if you do need to come back to the UK you'll have debt collectors waiting for you here to compound your problems.

As Running Horse said, it's pretty simple really; if it's been on the market for two years then it's priced too high.

G_M

movingtousa wrote: »

I'm selling it at a very reasonable rate, over £12,000 less then I paid for it five years ago. It's on for £73,000 but can't seem to get anyone though the door.

So it is over-priced. What you paid 5 years ago is irrelevant and does not make it 'reasonable'. It can only be 'reasonable' or otherwise in relation to today's prices.

poppy10_2

You are being far too picky, many professional landlords love DSS tenants as they get a guaranteed rental income from the council.

jockosjungle

Also if you yourself want to emigrate permanently to the USA, you may need to sign something saying that you are all squared away in the UK, owe no taxed or any debts. They may check

DHS Tenants are better than no tenants at all

R