Pros and cons of repo vs vol repo

TheCat_2

Hi everyone,

Just wanted to pick the brains of the forum on the above topic. I'm in new accomodation and my old property is vacant.

I've done BR and was AD in Jan '11, the original property was on a SRO for the duration of the BR (and about £12k neg equity) and as soon as I got the new accommodation sorted I stopped paying the mortgage again.

Halifax solicitors contacted me yesterday and said they were about to apply for the repo order and eviction warrant.

When I said I was in new accommodation and wasn't interested in retaining the property they asked if I'd prefer to do a vol repo to save costs.

I said I'm not bothered about costs either as shortfall will fall into Br but they asked me to think about it and let them know next week.

Purely from a future credit/cml point of view is it preferable to do it one way or the other?

Thanks in advance

Ineedaname

I think if you vol repo it may not appear on your credit file but if the bank takes the house off you then I'm pretty sure it does appear.

Eager to hear a guru's knowledge on this as it's an interesting question.

silvercar

Either way if you ever apply for a mortgage in the future and are asked if you have ever been repossessed, you would have to answer that you have.

Given that any costs and the shortfall will end up in your bankruptcy, provided you don't sign anything making yourself liable for the shortfall it won't make a financial difference.

Only slight difference could be in the date of repossession as voluntary would be quicker. But whether May 2011 or November 2011 makes a difference is a moot point.