Repossession or Voluntary Repossession?

Anondebtadvisor

No the deed of acknowledgement is a clause in the agreement they ask you to sign upon voluntary surrender.

If you just say something like you are unable to offer any arrangement to clear the arrears and you do not see any inprovement in your circumstances, you are seeking advice and therefore have no alternative but to move into rented accomodation and the mortgage company to take possession and sell

fermi

Anondebtadvisor wrote: »

When you voluntarily surrender a property the lender will ask you sign forms - within these forms is a clause which can make you liable for the shortfall even if you do go Bankrupt.

ONLY if you sign them after you have gone bankrupt.

There is no problem with signing voluntary repossession forms that have this in them before your bankruptcy date.

Just had to make that clear, as I don't think people would have picked that up from previous posts.

confuzzled2012

Confused.com :-/

confuzzled2012

So I can sign voluntary repossession papers? and the money later be included in a bankrupsy?

fermi

Options are:

Before bankruptcy.

1) Voluntary repo using the lenders forms. Will not make you liable after BR.
2) Voluntary repo by just sending a letter or delivering by hand to the bank. Can be a pain to get the bank to accept and go ahead with repo.
3) Leave it to the courts.

After bankruptcy.

Either (2) or (3) above. Not (1) if there is a liability clause.

fermi

confuzzled2012 wrote: »

So I can sign voluntary repossession papers? and the money later be included in a bankrupsy?

Yes, as any "deed of acknowlegemnt" they might contain will be nullified by the later bankruptcy.

The forms are only a problem if you sign them AFTER you have gone bankrupt.

BUT, as always, get some free professional advice before you sign forms. With something this important, don't depend on forum advice.

hamac

Thanks again.

It does your head in all of this but it is interesting learning about it all. I'm just taking each day as it comes and what helped me was finding out as much as I could before going bankrupt. I thought I had thought of most things but it's hard to and things are still cropping up e.g. finding building insurance for a bankrupt. I want occupied insurance for one month (as previous insurers won't insure bankrupts) and then I want insurance for unoccupancy for however long it takes for the repossession to take place. If anyone has advice on that then I'd appreciate it. I need to ring around today.

hamac wrote: »

Dear All

This has been the most useful info to date. I have called quite a few people and they have not been able to provide answers with regards to voluntary repossession. So thank you.

I went personally bankrupt on 1st Feb this year and I actually want them to take the house back as I can't afford it and for me it will end this chapter of financial struggling. I also wanted to know whether to voluntarily hand back the keys and about the repossession process and you have answered my questions. My concern was the deed of acknowledgement and unknowingly signing something that I shouldn't.

I will be moving into rented accommodation at the end of the month but will check up on the house twice a week as I work part-time locally. I will empty it so can be exempt from council tax for 6 months but will keep the keys to just check all is ok. I will get buildings insurance for unoccupancy and just wait until the courts contact me I suppose. Does that sound about right to you?

Thanks

hisandhers1978

Hi All,

I remember the confusion of this all having been through the same. The basic process that we did was:

1. Stopped paying the mortgage August 2010
2. Spoke to NR and explained we would be leaving the property and could we send the keys back. They said that we could, but we had to sign the Deed of Acknowledgement form mentioned in previous posts to legally volunteer the property. We were advised not to sign this and so didnt. We left the property, tied up council tax and utilities and then let the courts reposess it. We didnt respond to any papers or turn up in court (you can turn up if you want to defend it/pay arrears etc). They went and changed the locks etc etc and sold it. It took from August to March for this to happen.
3. The shortfall has gone into the bankruptcy as a result. We went BR last March and house was repossesed a few weeks after and is now showing as settled on credit file.

I found the simplest advice was not to complicate matters by signing anything, or responding to anything. Their legal people do everything. I know it probably feels like your world is falling in right now but it will all resolve itself and you'll move on.

Hope this helps.

hamac

Thanks hisandhers1978 but what did you do about building insurance? Did you insure the property and if so who did you use that accepted bankrupts? I ask because if anything does happen to the property while unoccupied my understanding is that I will be liable.

averagemummy

Thank you to you all, we are just contemplating this at present but it's very comforting to hear other people's experiences.

I have a question - might seem a bit weird in the circimstances - when you were repossed did they put a notice in the local papers or on the front door? We are in a small location and everyone knows our house! It's also right opposite the school so all the other parents would guess. I would hope to keep this private from our family and most of our friends, but is it just inevitable they will find out?