Assisted Voluntary Sale Scheme

MichMoor

Hello All,

Further to my previous posts relating to voluntary repo of our house I have unaminously telephoned my mortgage company and explained the circumstances.

Brief background, split up with wife, moved into parents, paying half so far but cannot pay in long term (few months at most maybe made redundant definitely will have a pay cut whether or not in a few months). After this will not be able to make mortgage payments.

They outlined procedure for surrendering property, send keys back with a letter etc in registered post. BUT they did suggest a Assisted Voluntary Sale Scheme, where the property is marketed by local agents at a realistic price, sold and a agreement can hopefully negotiated with the company over the shortfall.

Sounds it is at least worth a try before posting the keys back?

Has anyone tried this and been successful, offer any advice etc?

Thanks in advance.

Charlie142

Hi, I did this (assisted sale) with Northern Rock last Dec;I needed an asisted sale vbecause they had to agree to sell the house as I had negative equity and arrears. so even if I could get a sale without their involvement they could and probably would have stopped it going through.

I was still living in my house right up until the sale; and I had had numerous agreements over the months to pay this and pay that, I broke most of them, and I have to say they were very good and understanding.

I davised that my onl;y option was to sell the house and I flagged up what I have detailed above; they suggested an assisted sale. I kept them fully informed of the fact that I couldn't afford the mortgage, that there would be negative equity and obviously they were fully aware of the arrears situation.

I had actually already apppointed an estate agent etc prior to talking to them about assisted sale so things were happening anyway.

Cut a long story short I got a sale, agreed it with the purchaser as normal through the solicitor etc. I then had to agree it with NR; they made me sign forms to agree to payback the shortfall, as of course it was to become and unsecured debt. On the completion day they messed me about with the forms saying they hadn't received them but eventually it giot dorted and the sale went through.

I was left with approx £40k shortfall with them, which included the neg equity, arrears and of course the damn early redemption chatge of al;most £9k which really did annoy me.

However what I knew and they didn't was that I intended to go BR which I did in march of this year; I wrapped that debt (as it was now unsecured) into my other debts and took the terrible step of going BR.

So thats my story with an assisted sale; I satyed in the house until completion day; hope that helps?

MichMoor

Thanks, I am not living in the house, she is, but no chance of sale, negative equity etc. I have other debts as well so may well go bk as well, was it really terrible?

Charlie142

Did you mean 'go BR' or bk to the house? I think it was BR as I said I took the 'terrible' decision. I had other debts as well; and had lived a pretty good life really until 5 or 6 years ago when redundancy struck.

It was just a terrible decision to have to make; I fought it for several years, but when the house went etc it was actually a 'no brainer' really. I am going through early discharge at the moment, 6-7 months into BR and I hope to be discharged by end Nov latest. I have in place a £200pm IPA (Income Payments Agreement with the OR) which lasts 36months in total. I am 52 but at least I have a chance of rebuilding my life where as if I hadn't gone BR I wouldn't. I hate the stigma of course but I have been open with my friends and family (that's how I deal with things, although it may come back to haunt me who knows).

This forum has been great and you know you are not alone plus its been a wealth of info to dispel myths etc about BR; i have been so thankful for this site and the people on it. The process wasn't that onerous actually; to the OR its just another bankrupt and I have found them very fair really.

Anyway I hope things improve for you and you work through it; good luck to you; cheers Charlie142

MichMoor

Thanks for above, I have other debts (wife left me with them) and think going bankrupt is ultimately probable, at 41 I hope to be able to rebuild my life.

ess_pee

MichMoor,

I know this thread is about a month old but have you decided what to do?

If you do need any further help, I am quite familiar with the Northern Rock AVS scheme so feel free to ask any questions to me in this thread.

AFAIK the NR AVS scheme has recently changed, so people who have historically been assisted through AVS may be offering information which is out of date.

spanner6282

Hi everyone

I am in the very early stages of the AVS Scheme with Northern Rock (just split from my partner and Northern Rock have just posted to me the income and expenditure forms to complete and return to them). I am very nervous about the whole thing and would appreciate any help or pointers that may help the transaction run more smoothly.

Thanks in advance.

now

spanner6282 wrote: »

Hi everyone

I am in the very early stages of the AVS Scheme with Northern Rock (just split from my partner and Northern Rock have just posted to me the income and expenditure forms to complete and return to them). I am very nervous about the whole thing and would appreciate any help or pointers that may help the transaction run more smoothly.

Thanks in advance.

I have not heard of this, the only thing I would be nervous about is signing forms re the shortfall. One of the others will be able to help, so I will just bump you up the board

missclaireylou

Hi Everyone!!

I am also just about to go through with an assisted sale with northern rock! its all feeling very scary at the moment! but this forum has helped

thanks

sickofitall_3

Glad i found this thread. NR have advised either reposession or VAS.

I kicked ex out in sept 2010.

I'll try and be brief. Husband is a lying ****. we have been over our heads in debt for years, i knew nothing. I have Bipolar disorder and havent worked in years. He is Financial Advisor and took care of everything. £270k on house worth £200k at present. Mortgage of £190 plus £40 secured and £40 unsecured.All this was allowed to be put on the property by self certification by him and within 18 months of buying the house!!!!!!!!!!!!!!! irresponsible on his part and NRAM. I have got copy applications from NRAM and they are all to pot. None make sense and hub has'played' the system. I have told NR about this and also made a personal complaint AND have a solicitor onto it for me. I am trying to be held only responsible fot the original mtge and not all the loans. I have two kids and cant secure a job.For the last year maybe a little more NR have been great. he lost his business down to living beyond his means .Business colosed and income went down drastically. They havebeen agreeing with ME reduced payments etc whichhas been fab. But....they keep messing about by not telling me correct info. example, they spoke about a 'loan modification' but once they got around to sorting it they said they couldnt because i had since gone into a £1 a month arrangement for the unsecured!!!!!!!!! why didnt they tel me that when i applied etc etc etc.

EX rang them in sept 10( without my knowing) and told them he would pay them £2000 in January 11. OMG how!!!! :mad: And because he hasnt they class it as breach of agreement and have now offered me either the letter before action for repo or AVS unless we can between us or separately pay the full contractual amount of £1235.00 per month!!!!!!!!!!!!!!!!!!

i need advice asap.

The government mortgage rescue scheme sounds interesting but do they have a limit.
good luck all and thanks for any advice

silvercar

Bipolar and a difficult OH and trying to protect your children is a big enough workload without trying to hold down a job. Good luck in sorting things out.

Extracting the basics from your story may help you concentrate on the things that are important to your future, rather than dwell on how the problems arose.

If the main mortgage is 190k and the property worth 200k, there is little equity in the property. The secured loan and unsecured loan are the icing on the cake, but if you can't afford the main mortgage then you need rid of the house. (I'm assuming here that OH won't/ can't pay towards the mortgage and you won't be working in the next few months).

Voluntary repo and AVS will amount to the same - there is no money (after sale costs) to be given back to you.

I would (a) check you are claiming all the benefits you are entitled to. (b) if that doesn't include enough to enable you to meet the main mortgage payments, stop paying the mortgage and save for a rental deposit and move.