Assisted Voluntary Sale Scheme.....?

sillygirl73

It has been suggested by my mortgage lender that I apply for this scheme. A brief history.........
Since Aug last year we have only been able to pay 50% towards our mortgage, and were being considered for the Goverment's Mortgage Rescue Scheme. After many months of miscommunication and bad advice:mad:, we were told that we would not be eligable for mortgage rescue, under the new criteria starting April this year. We have too much unsecured debt, (probable BR in future) and will probably have too much of a shortfall.
Sooo, went back to CAB who suggested handing back keys to house and allowing repossession. Then had a meeting with Shelter who suggested that we try to sell it ourselves.......just the small matter of EA fees and solicitors fees whilst also trying to save for a rental deposit etc.
Fortunately, have remained on good terms with our lender and today spoke to someone who said that we could possibly apply for an assisted vol sale. She said that they would pay EA fees and solicitors fees and if accepted, we would have 6 months to sell. I mentioned that we would have to stop our monthly payments in order to save for a rental deposit and apparently that is ok too!!!
So I'm guessing that they would add the costs incurred when selling to our outstanding balance?
This way, we would be likely to perhaps only have a shortfall of £10K rather than the £30K+ if went down repo route. If then went BR would this be included, as I'm sure I will have tosign to agree to pay shortfall?

Does this sound too good to be true? Lender is RBS and I looked online and it seems that this is a recent scheme they have introduced to try to prevent repos. Does anyone have any experience of this?
Thank you in advance

dojoman

If you go BR any shortfall would be included in your BR. Do not sign ANYTHING about your potential shortfall.

sillygirl73

Thank you Dojoman, I'm concerned as I'm sure they will only allow us to do this if we sign accepting liability for shortfall.......would this still be enforced if we then go BR? I thought that it was only after BR that you should not sign?

HOLIDAYMAD_2

Lenders dont want empty properties as they devalue really fast lenders find when they repossess, properties are in a pretty poor condition, very common for the former home owner to salvage anything to sell on ie windows, boilers, doors etc - all told this brings the price even further down when they go to auction. They lose more money and someone gets the property for peannuts.

Voluntary Assisted Sale is a good scheme, providing you are actively working with the lender in marketing the property and keeping it in a good sellable condition they will prefer to do that and if not sold will prob add on more time for you.
Its def more common now than previously as lenders have to many empty properties.

It as you says gives you time to save for a good deposit and takes the risk of evicition away.

Im assuming that to have gone down the Mortage Rescue Route you have a suspended order on the property, if you say no to this offer then they will more than likley apply for a baliff warrant and will give you the mim time to move out which could be 14 days from applying for the warrant- many lenders have the facility to the application online so the application for the warrant can be done in minutes.
A baliff warrant means you have to leave on that day and if you dont go the police can remove you.

I thinks its def worth considering , gives you buying time and you can leave early if you wanted to.

I dont know the consequences of the shortfall, but be absoutely sure what you will need to sign or not.

Angiepange

SG have a look at this thread, maybe some info that can help

https://forums.moneysavingexpert.com/discussion/2800884

I don't know the consequences of signing any shortfall forms pre BR but If I was you,I would definitely seek professional advice first.

Angie x

sillygirl73

HOLIDAYMAD wrote: »

Im assuming that to have gone down the Mortage Rescue Route you have a suspended order on the property, if you say no to this offer then they will more than likley apply for a baliff warrant and will give you the mim time to move out which could be 14 days from applying for the warrant- many lenders have the facility to the application online so the application for the warrant can be done in minutes.
A baliff warrant means you have to leave on that day and if you dont go the police can remove you.

Fortunately we only have had the 15 day notice of possible action letter.......and this was requested by me (on the advice of my MR advisor:(). So still in the 'fluffy' stage which is why this scheme looks like a good idea.

AP, thank you for that thread, it seems that the OP signed liability and then went BR later, and his shortfall £40K was included in his BR, so seems ok...........but will take advice. He also did not pay much towards his mortgage at all if anything. So maybe us not getting on MRS is going to end up a good thing after all!!

MichMoor

Hi,
I started the thread that you are refering to above, I was offered the asisted sale scheme but decided not to go for it, whilst it looked a good scheme they wanted me to pay the mortgage and just could not afford to (wife left me and could not afford it), I handed the property back and my mortgage was with RBS but they did not ask me to sign any forms just send them a letter saying I had no interest in the property, included a letter from my ex saying she had no intention of paying towards the mortgage, they were fine with it. But I had somewhere to live if you have to save for a deposit then it may make sense for you to stay put till you have enough. I had tried to sell but in 6 months had no interest in it all did not want to be dragged thro courts.

I handed the property over in good condition, made note of utilities, informed council and took photos to show I had not wrecked the place as it will depend on shortfall on whether I go BK.

HOLIDAYMAD_2

sillygirl73 wrote: »

Fortunately we only have had the 15 day notice of possible action letter.......and this was requested by me (on the advice of my MR advisor:(). So still in the 'fluffy' stage which is why this scheme looks like a good idea.

AP, thank you for that thread, it seems that the OP signed liability and then went BR later, and his shortfall £40K was included in his BR, so seems ok...........but will take advice. He also did not pay much towards his mortgage at all if anything. So maybe us not getting on MRS is going to end up a good thing after all!!

I dont know your circs but from reading your first post its seems that your around the 4 month arrears stage if paying 50 percent each month.

The fact that they have not pursued a SPO and are putting this option to you seems like they are actually a good lender with ethics.
If your right by saying they will allow you to remain without mortage payments unlike the above poster that is a real result.

What i would suggest is if you do go ahead with the proposal is ask them to stop the credit reference showing from when you start the proposal late or nil payments as that will have further adverse effect on your credit reference file.

BUT do they think or do you think they are hoping for a quick sale within the six months because they will want you out as soon as its completed, that could take ages but = could be quick.

Sorry to hear Mortage Rescue didnt work out - there have been so many changes to it since it was first introduced and this government doesnt really support it - so i think it will be a matter of time before it is scrapped.

Good luck Anyway

sillygirl73

MichMoor wrote: »

Hi,
I started the thread that you are refering to above, I was offered the asisted sale scheme but decided not to go for it, whilst it looked a good scheme they wanted me to pay the mortgage and just could not afford to (wife left me and could not afford it), I handed the property back and my mortgage was with RBS but they did not ask me to sign any forms just send them a letter saying I had no interest in the property, included a letter from my ex saying she had no intention of paying towards the mortgage, they were fine with it. But I had somewhere to live if you have to save for a deposit then it may make sense for you to stay put till you have enough. I had tried to sell but in 6 months had no interest in it all did not want to be dragged thro courts.

I handed the property over in good condition, made note of utilities, informed council and took photos to show I had not wrecked the place as it will depend on shortfall on whether I go BK.

Sorry....I misread the thread!:o thank you for letting me know your circumstances........its still something we may end up doing, all depends on how quickly we can save for deposit and how quickly we sell.

Holidaymad, we would have enough for a rental deposit etc by end of May (would mean missing 2 payments). I hope they do let us do this, as it will allow the property to sell more quickly..........ever the optimist!!

Angiepange

HOLIDAYMAD wrote: »

Sorry to hear Mortage Rescue didnt work out - there have been so many changes to it since it was first introduced and this government doesnt really support it - so i think it will be a matter of time before it is scrapped.

Good luck Anyway

The Mortgage Rescue Scheme is planned to run for another 2 years from April with a 3rd year 'mop up' period. But the criteria is set to change (all new applicants will be offered 90% market value for their property not 97% as previously).

SG, good luck with whatever you decide to do x

HOLIDAYMAD_2

Didnt say it was gonna be scrapped quickly but in time, problem was first 12 months had very few take ups, Lenders didnt like it esp the likes of Northern Rock , and so many restrictions to start with, then they moved the posts to get more on it but often the homebuy agents were not fast enough.
Sadly the founder died as it went into action, and no one could really take that person's place and move it forward as it was wished.
Government in 2nd year increased funds due to poor take up in first year. I think in the first year nationally there were less than 200 sucess cases, a lot of intrest but many failed.
Labour gave between 200-400 million to the scheme. A lot of that money was to promote it and that got saved not spent by councils.

Biggest problem has always been limits on negative equity, realistic market prices, and amount of charging orders many areas are grouped and houseprices can differ so vastly within those groups, so price caps dont often reflect the property or area.

Good scheme in principal.