Repossession or Voluntary Repossession?

confuzzled2012

hi, my insurance company are looking into who will insure me for an unoccupied property, i've been told today that i need to keep buildings insurance until the house is sold by my mortgage company or myself, whichever is sooner. Also, a query, payplan told me not to tell my mortgage company i'm moving until i've moved as they didn't know if the mortgage company could do anything before i moved to get me out, did any of you tell the mortgage company beforehand? i'm waiting for a phonecall as i didn't pay at the end of last month, just wanted to know what to tell them when they ring?
Payplan said i could send keys back and a letter but not to sign anything.

debtinfo

Hi Confuzzled, there is no legal obligation to keep the property insured, it may be a breach of the mortgage terms but since you are going to be heavily breaching those terms soon anyway what does it matter

confuzzled2012

So if the house burns down i can still include it in a future bankrupcy?

debtinfo

yes you could, the mortgage debt would be exactly the same, it would just be secued on an asset that is now worth less, As long as you are not purposely starting the fire then it would be covered. I would inform the mortgage company if you stop the insurance so then if they want to they could arrange their own cover to protect their asset

confuzzled2012

Ok thanks, as long as that's the case then i won't get buildings insurance, it's just an extra cost when i'm moving to save money in the first place.

SteveABC

I was just advised that it would be beneficial to keep up the buildings insurance "in case a slate came off in the wind and hit the postman"! I did, although that scenario is unlikely!

I told the mortgage company nothing until I'd actually moved out and into rented. Then only a very basic letter (as per my previous post).

Good luck with it all. It is a bit of a nighmare, but things will become clearer as time goes on.

confuzzled2012

Thank you, i'll wait until the day i move, end of the month and then tell them, if they ring in the meantime i'll just fob them off or if i know it's them ringing i won't answer the phone. I'll tell them when the time comes I can't afford to get an unoccupied buildings and then hopefully they will insure it and then just add the costs to the shortfall.
It's a minefield, ex not interested in any of it so i'll be sorting it all myself as per usual.

davetheman

I am moving out of my property this Friday into a rented place, will then do a simple letter the morgage company, do I enclose the keys?, was going to keep buildings only insurance, do I need to tell this it is unoccupied then?

confuzzled2012

hi if your keeping buildings insurance yes you do need to tell it's unoccupied, i've had a quote and it's double what i was paying, but i've been told that i don't have to keep this and just let the mortgage company know i haven't got it, i'll tell them i can't afford it as it's doubled in price, hopefully they'll insure using theirs and then past cost to me at a later date when all sorted.

confuzzled2012

hi my current insurance company are going to let me keep mine running until the end of my policy which is a month after i've moved out and cover me still but they can't take contents off or do any changes, so i've had to take a new contents out to cover new property. Also, rang council tax and can do a 6 month excemption on current property once i move out, once i get repossession order i've to send to them and they'll then do another excemption until property sold, class L or something it's called. Water company told me to switch off stop tap myself when i leave to avoid further charges. Productive afternoon :-)