Urgent Help Please, Re: Housing and Repossession

AMILLIONDOLLARS

Unfortunately, just walking away, will not cancel the debt. If the BS/Banks sell the house for less than £104 you will still be liable for the shortfall. The bank can pursue for the next six years until the debt is fully paid off. They could even make you bankrupt after that time. Please contact one of charities listed on here. Why don't you put up Your Statement of Account and let the people on here advise you how to cut your budget.

Furthermore if you make yourself intentionally homeless the council are not obliged to house you or your family, so please bare this in mind as well.

Good Luck

AMD

SouthCoast

From Shelter:

Lenders should follow the steps outlined in a special 'pre-action protocol' before they consider taking you to court to repossess your home because of mortgage arrears. If the pre-action protocol is not followed, you may be able to ask the court for an adjournment – this has the effect of delaying the repossession process until it has been complied with.

http://england.shelter.org.uk/get_advice/repossession/steps_before_court_action

econnin

Please talk to northern rock.

They may agree a negative equity sale, depending on their policies. This would avoid repossession, but you will need to agree a payment plan with them to repay the shortfall once you have sold the property.

If you did decide to go ahead with voluntary possession, they will simply send you a form, you sign it, and hand in the keys. But this will still be a repossession and could affect your credit rating for years. It depends on the bank as to how long it takes them to start pursuing you for a shortfall after repossession. If you are able to pay monthly towards the shortfall, then they may agree to this however little it is, or they may agree a settlement for a reduced figure. If however you are in a very poor financial situation, they are unlikely to issue further proceedings against you, but are in their right to do so, so don't gamble on this.

Perhaps if you had a better support network around you, things may look different? Can a family member come and stay with you for a few days so you can have some time to yourself and an evening with your wife, without your child? Do you have friends around you? Are you in a good job, because if you move, you may not get another one for some time. I agree with the other posts - take a real, hard look at your situation, including your finances, before you do anything - and don't be afraid to talk to northern rock. They wont, and can't, just issue proceedings because you have told them your concerns, but maybe they can give you the information you need to make the right choice.

Have you actually got your house valued? And did you use the extra mortgage to buy anything you can sell to pay back some of it - a car, for instance? Get an estate agent around and a valuation for sale and rent. NR are unlikely to agree to the property being rented when you are in arrears, but still it is another option to at least look into. Get all the information and advice you can before making any decision -then at least you know you have made the best one.

whyowhy_2

David1178 wrote: »

Hi

thanks,

I know it is drastic but I have been considering it for a long time and it seems my best option.

I do not want to live here any more. I cannot afford to live here any more, and I can't handle the stress that living here is causing me any more.

I have no problem with them taking the house back, I just wondered on a rough timescale of how long it all takes to go through, as I need time to save some rent money first.

Hi David.

I understand your feelings, but please take some proper advice before doing anything too rash. I understand that you need to move on, but do it in a way that minimises the future repercussions for you and your family. I'd suggest that National Debtline would be a good place to start. They may recommend bankruptcy.

Debtline really helped me to separate my finances from my emotions and find a way forward at a very difficult time in my life. Money is just money, and not nearly as important as your family's health and happiness.

Be strong

HRV

I was just thinking the same as whyowhy- you need some advise as bankrupcy may be better than just running away.

My OH went bankrupt and it was the best thing he ever did- I know many will say it's a cowards way out but sometimes you have to do whats best for you- so u need to get advise on this.

good luck

chevalier

How about moving back with family for the time it takes to build the rental deposit. Then rent out your house? Would that work? Could you charge enough rent to cover the mortgage?
good luck
chev

thedeans

3 years ago i was in exactly your situation and here's what i did

I went to CAB - who basically said "you can't afford to stay in your house" - I knew that already just needed it confirming

We decided repo was the only way to go

We stopped paying mortgage (was already in arrears anyway) and saved for deposit for rental property

we spoke to estate agents - criteria was either 6mths rent up front and /or guarantor - we were SOOO lucky that we were able to get a guarantor - note they must have a large disposable regular income to qualify which is trickier than you'd think - check first or find a private landlord

it took the mortgage company nearly 12mths to take our home and that was only after I called them and reminded them that the house was STILL empty
It was the best thing we ever did - we too moved closer to family and the extra on hand support has been just what we needed - my children were upset at first(youngest VERY upset) but within weeks of moving seemed better - he's since said he likes our new home cos we are all happier - but next time can he have the biggest room please - so they adapt - we all have - infact life is much better a little odd at times (no house to pass on, can't update or change property cos not mine ,lots of old debts hanging around etc) but defo better

rachaelamy

Hi,
I really know exactly how you feel. We moved out of our house because we couldn't afford it, it was too small and our neighbours were horrible. It made me shake everytime I pulled up the drive. It gets to the stage where you want to get out of there and don't care about the consequences,
I was different in that i decided my only option was bankruptsy, which I now am (since August). I tried other solutions but a combination of having a baby, partners redundancy etc there really was no other option.
I wrote to Northern rock and said I was voluntarily surrendering the house and they have written back saying they refuse to repossess it (!?). I live in rented accomodation and the house is empty. I'm not going to pay the mortgage, so if they don't repossess it I'm not sure what they'll do.
The shortfall (if they sell it one day) will form part of my bankruptsy so that should be ok.
The only thing I'm worried about it having to pay the council tax and insurance on it, as I can't afford that, but it's still mine technically. Does anyone know where I stand with this?
So, my advice is get in touch with CCCS (recommended on here) and get the ball rolling. If you need to go bankrupt so be it, you'll still be alive and so will your family. You really do need advice as simply having it repossessed will not clear you of the debt, it might even add to your stress. (I know you want a clean slate so don't want to hear that but it is as it is)
I wish you all the best of luck
x

chevalier

Hope you have been able to get some advise on the best way forward
chev