Stopped paying Mortgage what next?

live'n'learn

Hi,

after speaking with a debt adviser and deciding that going bankrupt is my best option i have stopped paying the Mortgage as giving the house back will actually be a relief.

I will be looking to rent through the Housing Ex here in N.Ireland but know we could be in temporary housing for a while.

My question is for anyone who has been through getting their house taken by the bank is what is the process after you stop making payments?

MichMoor

I am in a similar position, split from wife, I moved out but contributed to half of everything but could not sell house. Sge decided she wanted to move on and did one, I cannot afford mortgage so stopped paying it, still deciding whether to go BK tho.

However I kept the mortgage company informed so far missed 3 payments and surprsingly have not heard that much from them, but for the first 2 months just got a couple of letters one saying please call to discuss, second saying now in arrears with a FSA leaflet. Apparantly now missed 3 will get a demand, as I said have kept them informed, once recieve demand will discuss situation with them but nothing is going to change fact I cannot afford it.

Has taken a bit of a mental strain so unless the bank is willing to do a good deal e.g. payment holiday till sell house will send keys back, they did tell me I could do with this after 3 months with a letter saying I wish to surrender the house. My ex sent me a letter prior to Xmas saying she had no intention to contribute to the house and is happy for it to be repossesed, kind of her can send that as well.

Will make a decision on whether to go BK then, she has left me with a pile of other debt as well!

Good luck.

Flyboy152

keysey wrote: »

Hi,

after speaking with a debt adviser and deciding that going bankrupt is my best option i have stopped paying the Mortgage as giving the house back will actually be a relief.

I will be looking to rent through the Housing Ex here in N.Ireland but know we could be in temporary housing for a while.

My question is for anyone who has been through getting their house taken by the bank is what is the process after you stop making payments?

What discussions have you had with your mortgage lender?

dancingfairy

Hi - I don't know how the system works in NI but in England if you need to rely on being rehoused you should not move out until the bailiffs literally throw you out (which can take a while as you should get a court date for reposession, you then stay, they then apply to have you removed etc etc) as otherwise you may be deemd to be making yourself homeless.
You also need to be aware of what you sign re the house - in some circumstances I think you can be liable for any shortfall - I believe it applies if you go bankrupt first and then go for repossession but do check this out before signing anything - again not sure if this applies to you or not but better to be aware of it.
df

ani_26

I agree with the above said. If you DO need to rely on being rehoused, you will have to sit it out until the bitter end, until your home is repossessed, otherwise it is deemed as intentionaly making yourself homeless.

It can be a long, long process. I don't know your exact situation, or how it is in NI, but your debt can then be sold to dca's, before being passed on to a solicitor, who will then, quite rapidly make a court order for repossession of your home. After you have appeared in court, you will receive a date for eviction and you are then officially homeless, ( with the least amount of intent there could be ), and i believe there is a maximum time of 42 days, to rehome yourself, well in england, i believe.

I don't know how it is in NI, but maybe someone else will be along with more informatiion. But you must never ever sign anything, or you may indeed become liable for the shortfall. I know here, there is a deed of acknowledgement, which if you sign, you then become liable for the shortfall

I don't know too much about voluntary repo. Maybe this road would be less stressful, but then again, it depends if you have somewhere to live.


Nohope x

mayihelpyou

if you're going to go bankrupt, don't do it until the proeprty has been dealt with as the fees etc will be dealt with after the bankruptcy and you will be liable to pay.

1. Like no hope just your position re vol repossession as I know of some people who were unable to get housing benefit as they put themselves into that position.
2. Don't go bankrupt until you have moved etc otherwise any fees incurred after bankruptcy order you will be liable for.

fiveyearplan

You won't be liable for fees if you go bankrupt before your house has been repossessed. Be sure you don't sign any papers from the mortgage company though.

Flyboy152

Have you considered an IVA?

live'n'learn

Flyboy152 wrote: »

What discussions have you had with your mortgage lender?

I have not had any discussions as yet with my mortgage lender!

live'n'learn

dancingfairy wrote: »

Hi - I don't know how the system works in NI but in England if you need to rely on being rehoused you should not move out until the bailiffs literally throw you out (which can take a while as you should get a court date for reposession, you then stay, they then apply to have you removed etc etc) as otherwise you may be deemd to be making yourself homeless.
You also need to be aware of what you sign re the house - in some circumstances I think you can be liable for any shortfall - I believe it applies if you go bankrupt first and then go for repossession but do check this out before signing anything - again not sure if this applies to you or not but better to be aware of it.
df

We tried to sell the house for over 2 years to try and sort the debt out but could not. We were classed as homeless due to at that time having a buyer (later pulled out) and were given 80 points which is no use over here but at least by law the Housing Ex over here have to re-house us which will probably be temporary for a while.

live'n'learn

Flyboy152 wrote: »

Have you considered an IVA?

I started an IVA in the summer but got hit with 8k debt for child support (which i am now paying now and will take about 3 years) but because of this the IVA became the wrong way for me to go!