Volountary reposession

loony767

I currently have a house that I no longer live in due to work relocation. I did have tenants in but they ruined the house and owe me over £2000 before doing a runner. I don't want this hassle again and want to know the pro's/con's of handing keys back to the bank.
I currently mortgage with Santander, house is for sale at £83000 and I owe £90000 approx.:(
Any feedback appreciated here or at [EMAIL="loony767@hotmail.co.uk"]loony767@hotmail.co.uk[/EMAIL] (if email address allowed)
many thanks
Stacy

BoGoF

If you go for the voluntary repo route you are more likely to have a bigger shortfall due to additional fees the lender will charge you and the fact it will probably go to auction and achieve less than it's true value.

You will have to come to an arrangement to pay the shortfall

Caz3121

they will likely sell the house off at auction and you will be liable for the difference between the selling price plus all costs and the £90k and your credit file will be up the spout for years. Have you considered bankruptcy?

Thrugelmir

Do you own another property?

Conrad

Repo will likely lead you incurring a far bigger debt.

For example the following additional costs will be incurred;

1) Making the property secure, usually with metal window plates, new locks etc
2) Ongoing property managment until sold
3) Possible balifs costs
4) Legal costs such as repo court fees
5) A big loss on price achieved as repos are often sold to cash buyers who want some 'xtra' juice out of the deal
6) Ongoing lenders admin costs
7) Arrears interest anf=d fees


You should probably carry on letting it and wait for market to recover - it will, or sell now with the lenders permission - they need to know up front there will be a loss to pay