Voluntary Repossession

MTDancer

Can someone tell me how to do this?

I have seen comments saying do not sign anything.

We have 2 properties. Number one has about £!0,000 equity and a tenant in it. NRock say they will take the rent to pay the mortgage but the OR told us the rent was going into the pot for all creditors.
Number 2 is empty and is about £5 in negative equity.
We just want them repossessed so can we just hand them the keys back?
Had no word from OR since interview 6 weeks back who said any shortfall would fall in the bankruptcy but I wonder what would happen if I got and early discharge before they repossessed the house?

Thanks everyone

IF

Hi MTD, Fermi's stickies here may help until a poster who has been through this can advise further.

Your home/property.

• Dealing with property interests from 1st Jan 2011 ---> Discussion thread
  
• What will happen to my home? (IS) (pdf)
• FAQ - Bankrupt's Home under the Enterprise Act (IS)
• OR's Case Help Manual - Family Home
• If my house is sold sometime after the bankruptcy order is any shortfall on the mortgage still a debt in my bankruptcy?
• Charging orders in the county court - National Debtline factsheet (useful if a creditor is trying for a CO before your bankruptcy)

Voluntary repossession forms and bankruptcy - click here

Best wishes
If...x

curly04

Hi I had my house repo'd after i went BR
if you dont pay the morgages in so long then they will start proceedings
im not sure where you stand with the one that has the tennet, are they need the end of the contract? can you give them notice to leave???
Do you really want to see them on the street ??

Just remember if you are already BR do not sign anything, also if you get to the discharge stage and its still not sorted it will still fall into the BR but even if discharged don't say a thing

MTDancer

The tenant knows the situation and wants to stay - I think she is hoping for someone to buy it who will let it out (there is a small chance). I woory that they will not start proceedings until after discharge. Would this make a difference?

curly04

they will repo the house and evicite any people living before they sell it im affraid - unless when u got to court you ask the question but i dont think the answer will be yes - i am so sorry

if you have discharge will wont make any difference but they wont repo until you stop paying

MTDancer

Haven't paid for 6 months but they seem in no hurry

MichMoor

I have been told by my bank all I have to do is post the keys with a letter saying I have no interest in the property.

silvercar

NRock say they will take the rent to pay the mortgage but the OR told us the rent was going into the pot for all creditors.

Both are true!

Prior to repo but after bankruptcy, the OR will consider this as money for creditors. It won't be considered in the same way as a home you were living in.

Once the property has been repo'd, NR are the technical owners and can take the money to pay the mortgage.

they will repo the house and evicite any people living before they sell it im affraid -

This is true, though they may decide to wait until the market improves if they have rent coming in. Also depends on the mortgage, if it was a BTL mortgage or OP had consent to let, they have to honour the tenancy agreement and can only give notice once tenants are out of fixed term. A recent act has been passed giving tenants a minimum of 2 months notice in all cases.

MTDancer

Thanks silvercar. Tenant is on periodic now and we did have permission to let and it was a buy to let mortgage

FavDaughter1

Hi, i'm trying to read up on BR incase we need to go this route (trying to do a one off F&F IVA with help from my parents after being told our surplus income dip's too low to do a 5/6 YR IVA - we have to re pay parents it isn't a gift). i am concerned that the IP and/or creditors will try to push the f&f figure up at the meeting.

if creditors reject our F&F we will have to go BR. at present the mortgage& secured loan are up to date. i doubt very much we'd try to stay in the property if we go BR. so would we just stop paying the mortgage & secured loan,let it fall into arrears? or is it best to just try and move out right away? it's more difficult as i'm disabled (have been told the council would house me due to my physical health, i have adaptions to the home). i'm bothered about finding the £ to go BR. we'd have to stop paying the mortgage & loan to fund it.

would the council wait until we were repossessed before offering us somewhere to live? or could we get sorted before hand?

the stress of it all is killing me.
thanks

dancingfairy

if you weren't paying the unsecured debts could you afford the mortgage/secured loan? this may factor in whether you want to stay in the house or not?
Is there any equity in the house - can you sell and pay off the debts or is this not an option for you?
df