Bankruptcy after repossession

mostlycheerful

Oh dear, what a shame, I’m sorry to hear you’re in this position. What a nuisance that the rental isn’t enough to cover the mortgage and that you get those wretched voids. Would possibly using an agent, or a different one if you already are, speed things up? Are there other outlets that you could advertise in that might get a quicker result?

Ok, have you considered asking your mortgage provider to extend the term, let you switch to interest only if you’re not already doing so and or have a mortgage holiday of 2, 3 or 6 months? If they refuse then perhaps put it to them that it might have to be that or repossession in which case they’re likely to lose a lot more. If the frontline staff say no then I might be persistent and try to talk to someone more senior in the hope that possibly they have discretion and the ability to make such a decision in your favour in a way that the more customer facing staff may not. Yes, an attempt at this might not achieve anything but it’s probably only a few minutes of effort on the phone to find out so might be worth leaving no stone unturned.

If they refuse then would it perhaps be worth looking for another provider to give you interest only and longer term? Possibly this might be enough to make ends meet and make the figures stack up. Except I suppose that you’d have exit fees to leave the current provider and then fees to start a new one. So that might rule out any reduction and in fact just cost more. If going down this route then regarding exit fees I might try to negotiate them off, again, on the grounds that either they let you off or it might have to be repossession which would likely lose them a lot more. Sometimes being pushy and persistent and not taking no for an answer can pay off. Though, of course, often not. But probably worth a try, just in case. In the absence of any obvious solution then it’s probably worth at least a bit of effort trying relatively unlikely scenarios before you throw in the towel.

Have you been doing the rentals as one tenancy for the whole property and therefore with the living room being used as a living room? Does the living room have it’s own door or is it a through lounge? If the living room could be rented out as a room then perhaps renting all the rooms as single rooms might generate that vital extra bit you need. Well, if it’s enough. Maybe.

If repossession in fact turns out to be the only likely option then before doing that would be worth trying to sell it yourself rather than letting the mortgage company probably sell it cheap at auction? If you can get a sale yourself then you might get more and therefore end up owing less. Or are you in negative equity in which case the mortgage co may not allow a sale at less than the outstanding amount.

I see your location is East Midlands. Is it a desirable property in a desirable area in which sales are occurring and prices mostly holding up? Or not at all, as in a lot of parts of the country? If the former then probably more likely to be worth trying to sell it yourself. If the latter and you pretty much know that there’s little or no chance of selling in the current market conditions then maybe it’s not even worth trying.

And, as I’m sure you realise, just ignore the negative people, as you know, there’s loads of saddo wrong’uns on public fora so don’t let their nastiness and personal agendas and unhappiness and stupidity irritate you for more than a moment.

I’m racking my brains but I’m afraid that’s all I’ve managed to come up with. Sorry, not much really, and possibly you’ve already done this or thought of it. Or it’s just not doable. Wish I could suggest something more constructive and possibly likely to be viable. If I think of anything more I’ll whack it up here. In the meantime all I can say is I wish you good luck with whatever you decide. And maybe keep posting in case someone else can make some useful suggestions.

crescent25

mostlycheerful wrote: »

Oh dear, what a shame, I’m sorry to hear you’re in this position. What a nuisance that the rental isn’t enough to cover the mortgage and that you get those wretched voids. Would possibly using an agent, or a different one if you already are, speed things up? Are there other outlets that you could advertise in that might get a quicker result?

Ok, have you considered asking your mortgage provider to extend the term, let you switch to interest only if you’re not already doing so and or have a mortgage holiday of 2, 3 or 6 months? If they refuse then perhaps put it to them that it might have to be that or repossession in which case they’re likely to lose a lot more. If the frontline staff say no then I might be persistent and try to talk to someone more senior in the hope that possibly they have discretion and the ability to make such a decision in your favour in a way that the more customer facing staff may not. Yes, an attempt at this might not achieve anything but it’s probably only a few minutes of effort on the phone to find out so might be worth leaving no stone unturned.

If they refuse then would it perhaps be worth looking for another provider to give you interest only and longer term? Possibly this might be enough to make ends meet and make the figures stack up. Except I suppose that you’d have exit fees to leave the current provider and then fees to start a new one. So that might rule out any reduction and in fact just cost more. If going down this route then regarding exit fees I might try to negotiate them off, again, on the grounds that either they let you off or it might have to be repossession which would likely lose them a lot more. Sometimes being pushy and persistent and not taking no for an answer can pay off. Though, of course, often not. But probably worth a try, just in case. In the absence of any obvious solution then it’s probably worth at least a bit of effort trying relatively unlikely scenarios before you throw in the towel.

Have you been doing the rentals as one tenancy for the whole property and therefore with the living room being used as a living room? Does the living room have it’s own door or is it a through lounge? If the living room could be rented out as a room then perhaps renting all the rooms as single rooms might generate that vital extra bit you need. Well, if it’s enough. Maybe.

If repossession in fact turns out to be the only likely option then before doing that would be worth trying to sell it yourself rather than letting the mortgage company probably sell it cheap at auction? If you can get a sale yourself then you might get more and therefore end up owing less. Or are you in negative equity in which case the mortgage co may not allow a sale at less than the outstanding amount.

I see your location is East Midlands. Is it a desirable property in a desirable area in which sales are occurring and prices mostly holding up? Or not at all, as in a lot of parts of the country? If the former then probably more likely to be worth trying to sell it yourself. If the latter and you pretty much know that there’s little or no chance of selling in the current market conditions then maybe it’s not even worth trying.

And, as I’m sure you realise, just ignore the negative people, as you know, there’s loads of saddo wrong’uns on public fora so don’t let their nastiness and personal agendas and unhappiness and stupidity irritate you for more than a moment.

I’m racking my brains but I’m afraid that’s all I’ve managed to come up with. Sorry, not much really, and possibly you’ve already done this or thought of it. Or it’s just not doable. Wish I could suggest something more constructive and possibly likely to be viable. If I think of anything more I’ll whack it up here. In the meantime all I can say is I wish you good luck with whatever you decide. And maybe keep posting in case someone else can make some useful suggestions.

Thank you very, very much for the ideas and information you have provided. It must have taken you a while to write all that out and it's much appreciated.

At the moment, yes, we are in negative equity. I did think about trying to sell it myself, but if so, would have to gain concent from the mortgage company and don't think they'll let us do this as I would estimate around £10k shortfall and then the solicitor and estate agent fees.

The mortgage company don't offer buy to lets (I am renting illegally...:eek:) so we are on repayment. They put me on interest only for 6 months to try and help me when we first split up, but still made me pay extra each month to clear the arrears which we got when me and my ex split as both of us refused to pay as neither of us were living in the house. I was told they'd then consolidate the arrears and was then told I needed to be on repayment AND pay extra for 6 months before they'd capitalise.

I've spoken to the mortgage company who have been completely unhelpful and damn right rude. Everytime I speak to them I come off the phone in tears. One woman told me "if you can't afford to pay your mortgage, you can't afford to live there can you?". I was shocked that a building society could be so un-cooperative. They've shouted at me, threatened me - and I get it all because my ex doesn't ring them, has changed his number and basically disappeared off the plannet!!!

The house is a small 2 bed semi-detached. I don't think it would be feisable to rent out the living room as a room alongside the bedrooms as the kitchen is only 7x9ft so the people living there wouldn't have anywhere to sit and eat.

At the moment, I rent privately as can't afford to use an agency. My dad rents a house and used an agency to find a tenant (aorund £250) and it turned out they never did any checks on the tenant, she lived there for months not paying the rent etc and the whole situation got out of hand. I also couldn't afford to use an agency whereby you pay a % of the rental income each month to them, as this would mean more money I had to pay out. Sorry if it seems like I'm being negative about all the ideas

Hmm... I really see repossession as the only way out. My parents can only see that too. I'm going to wait until ym current tenants tenancy comes to an end and then think I'll knock on my ex's parent's door, see if they want to take the property over (i.e. rent it out through an agency & start paying extra money into it each month like I have for the last 3.5 years!!!!) to stop their son's house getting repossessed (as they're quite prim and proper and would see this as a bad thing to happen).

Thank you once again for all the options you have given me and the advice. It's really, really appreciated; you've all been so kind. x

dancingfairy

Sorry to hear of your situation - grrr ex
Just be aware that if you want to go bankrupt there are a few things you wuld need to sort out/be aware of:
1) you would need to find somewhere to live
2) you will need to find some money to go bankrupt - brilliant system isn't it.
3) if you go Bankrupt before the repossession (which you might not want to do what with the home situation etc) then don't sign anything as the mortgage company will try and get you to sign for the mortgage shortfall.
df