Allowing your house to be reposessed

Going4TheDream

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badbaz1975 wrote: »

Thanks everyone. Sorry forgot to say

He really doesnt want to live there anymore. Not big enough for his family. So is currently renting it, which just covers the interest only mortgage. The problem is, that if the tenant moves out and there is a gap in payment, he's will be in the sh*t.

Wont he be even deeper in the sh*t if he lets it go and still finds him self owing the difference (looking like £30 odd K) ?

Could he not scrape together a couple of months mortgage as a back fall just in case?

Thrugelmir

badbaz1975 wrote: »

He really doesnt want to live there anymore. Not big enough for his family.

Choice is simple. Either move back in , make do and sort the finances out.

Or wait for the train crash. As doing nothing will only have one outcome.

DVardysShadow

Sibley wrote: »

Prices will be rising 24% over the coming 4 years.

24.1% actually. Don't sell this coming property boom short.

Pobby

A sad story born out of the mad rise in housing. Good old Gordo who said that he wouldn`t let the housing maket get out of control again. I think it is a tale that is repeating itself throughout the country.

Talking to a mate who lives in the West Midlands, something like carnage is happening there. As for 24%, yea right.

vivatifosi

badbaz1975 wrote: »

He really doesnt want to live there anymore. Not big enough for his family. So is currently renting it, which just covers the interest only mortgage. The problem is, that if the tenant moves out and there is a gap in payment, he's will be in the sh*t.

How big is the flat and how big is his family? I'm veering towards Thrug's view that he should move back as we all have to make do with accommodation that's a bit on the small side at times, but we need to know a bit more about the practicalities. In terms of the other options, its a bit "you're damned if you do and you're damned if you don't".

Also, if he did move back, would he be able to pay off more of the mortgage by virtue of not having to rent as well?

myhouse_2

I just hope he has permission to rent out the property from the lender, and is doing all the safety checks and is submitting his tax documents annually. It's his tenant I feel sorry for if the checks are not being carried out - clearly this landlord can't afford to pay for basic repairs should they become necessary too. He should sell even for a loss and spend the next years paying off the debt. A weekend job might go a long way to helping him do that.

Sibley

I just hope he has permission to rent out the property from the lender, and is doing all the safety checks and is submitting his tax documents annually. It's his tenant I feel sorry for if the checks are not being carried out - clearly this landlord can't afford to pay for basic repairs should they become necessary too. He should sell even for a loss and spend the next years paying off the debt. A weekend job might go a long way to helping him do that

What a jobsworth you are.

I hope he doesnt tell his lender, does the safety checks and pockets the tax.

How does that one wear with you?

Oh god. Just think. If most of these accidental landlords are doing this. They will be making a fortune. No chance of them becoming a forced seller.

I bet thats eating you up.:rotfl:

wymondham

If Sibley is so certain prices are up 24% in 4 years then I'm sure he'll be more than happy to invest in this property to help the chap out, after all the figures will add up nicely for him!

BigAunty

Shelter strongly advise that struggling property owners do not hand their keys back without expert advice - it's a very last resort.

"Handing back your keys probably won't make paying your mortgage any easier and you will have to pay for somewhere else to live. Giving back the keys doesn't mean that you no longer have a mortgage. You will continue to be responsible for your mortgage until your lender sells your home, even though you are no longer living there.
You will also be responsible for:

• the capital you originally borrowed plus interest
• buildings insurance
• any arrears that you have
• penalty charges for missed payments
• your endowment policy or ISA (if you have an interest-only mortgage).

It may take a long time for your lender to sell your home, so the amount you owe may increase considerably

Will my home be sold for its full value?

Your lender is unlikely to get as much for your home as you would if you sold it privately. This is because many lenders sell repossessed properties at auction.."

http://england.shelter.org.uk/get_advice/debt_and_arrears/mortgage_arrears/handing_back_the_keys

Their website has excellent information for those with mortgage arrears and who face repossession.

Pobby

All this is kind of new to me. When we all bought houses in the 70`s, having to hand the keys back was never discussed. Yet then again we have moved on from that, I wish,