do i have to pay my mortgage

wassup2

hi,
I want to know what happens if one stops paying ones mortgage. In the case of negative equity, if my friends property is now worth a lot less than then when they bought it is it worth keeping up mortgage payments? Are they not better off just buying the one next door for half the price they paid for their current place? Can they not just hand the keys back to bank?

MrsTinks

Well they can hand the keys back but they would still be liable for the outstanding debt - it would granted be unsecured (and more than the current shortfall as there would be a lot of charges added on top and the bank will sell for whatever they get and simply pursue your friend for the rest) but if they didn't have the means to pay it would soon be pursued through courts and could end up with CCJs, attachement of earnings or even being forced to go bankrupt.
As for buying next doors... well chances of getting a mortgage would be so slim that you could roll a smoke with it

Tixy

If they stop paying the mortgage first charges will be added then (in a few months or so) the house will be repossessed, the house will then be sold at an auction and probably sell for much less than its worth on the open market. Charges will be added for the repossession and court costs etc. Even if they hand the keys back and possibly save a small amount of the costs they will still owe a big chunk of money.

Your friend will end up owing the amount of negative equity they perceive the house to have plus many thousands on top. The debt won't disappear and the mortgage company will expect it to be paid.

Obviously their credit file will be severely wrecked from not paying for the property so the only way they'll be bale to buy next door is if they have that amount of money in cash/assets without needing to borrow. If your friend has bought another property outright or has other assets then its entirely possible that the mortgage company would apply to make them bankrupt to attempt to recover the outstanding money.

MoneyMax

Just my experience here and that's all I have to go off.

I have a joint mortgage with my ex and he went bankrupt shortly after he moved out.

I was very suddenly left to pay the mortgage along with all other bills and secured debts, I missed month after month and soon became 3 months in arrears. I called my lender and explained the situation, they set up an agreement so I paid a small ammount for 6 months, now im back paying the full ammount monthly but obviously still in arrears, im still 3 months in arrears but in an agreement to pay a little extra each month, as long as i stick to the agreement i dont get any charges.

TALK TO YOUR LENDER, they may be able to help you out, xxx Good Luck x

dancingfairy

If you or your friend are having problems with bills and paying the mortgage then you should contact one of the debt charities for help and advice as to your best course of action - try National Debtline, CCCS or your local CAB.
Not paying the mortgage is rarely a good idea (unless you have somewhere else lined up to live and are going bankrupt anyway).
Best of Luck
df

rogersonjeff

i need some help with mortgage arrears but dont know how to start a thread can any one help please

browneyedbazzi

rogersonjeff wrote: »

i need some help with mortgage arrears but dont know how to start a thread can any one help please

Go to the list of threads on the board, at the top of the list on the left there's a button that says 'New Thread'...click that button and you'll get your new thread