Allowing your house to be reposessed

RUN_RABBIT_RUN

not too much to add to whats already been said, except that new build flats are possibly the worst for depreciation when there is a market downturn.

handing the keys back is probably the worst option, your friend should be looking at the option that makes the most financial sense at the present time (probably moving back in) even if it isn't the most practical solution.

Loopgames

badbaz1975 wrote: »

Hi
My friend and I were having a debate last night about whether or not it was best to give the keys to his flat back.

A bit of background, he bought the flat for £120k, but recently has seen the value drop to approx £85k!!! There are a few other flats in the same block up for around this price and have been up for sale for a number of months.

At the minute, he can only afford to pay the interest only on the mortgage.

After speaking to all the local estate agents , they all confirmed that it almost impossible for the flat value to rise back up to the original price in the foreseeable future.

Therefore he is debating whether or not to give the keys back and let the place get repossessed.

Would be really interested to get some other views on this if anyone has any please?

Thanks

Good! Continue debating with him....it is too easy for people to take a debt and not feel responsible to to meet it. The lazy way out..with consequences... is to give up.

Many people have suggested hard working solutions here and that's the mentality mortgage owners have to have..hard work mentality.

I personally believe prices will continue going down and many more people like him will contribute to the 'sub-prime' mortgage. Am on the side of the fence of waiting and see...then purchasing when the opportunity emerges...and it could be from the likes of such a person who has given up. I don't encourage anyone to give up but I know too many people will. Hopefully he gets peeved from this message to not let anyone take advantage of his situation.