got my self in a pickle

rb29

Hi everyone new user and need some advice. just under a year ago i bought my first property and managed to get %100 mortgage. 10 month on i hate the place mostly for persoanl reason now the house is up for sale i still owe 76 on the house and its valued at 80. im currently staying with family as i cant stand being anywhere near it. im struggling to sell it and cant drop the price to much or ill be in a lot of debt for nothing . id love to just hand the keys back but i dont know how that works , i know the bank will come after me for the ballance , wont be able to pay back a ballance because i would need to rent somewhere else. any input would be helpfull. anyone gave there keys back or know anyone who as?
thanks for reading.

PasturesNew

Do not hand the keys back.... you lose control and would end up in a bigger mess.

hcb42

rent it out?

cannot imagine what has gone so badly wrong in 10 months, but if you cannot learn to love it, either drop price, to sell it and pay off the shortfall in cash, or become a landlord, although I expect that is not without its own problems given the LTV ratio .

how on earth did you get 100% mortgage 10 months ago, i thought those days were well and truly behind us

rb29

could i not hand them back and enter into a trust deed ?

rb29

there was a 2 week window with certain properties with a 15% discount that would act as the deposit

rb29

if i sell for less would the bank except me paying up the shortfall , surely that would be better than handing keys back . what do you think?

G_M

I'm amazed
a) that a lender gave you 100% mortgage (who was it....?) and
b) you were daft enough to want a 100% mortgage

The reality is that when you sell you will have to pay off the £76K you owe. If you need to drop the price, and factor in estate agent and solicitors fees etc, you are likely to need to use some savings.

Alternative is to bite the bullet and move back in, or rent it out.

But renting is a serious business - you need to be sure that the rent you receive (assuming 10 months rent a year) will pay the mortgage AND other associated costs. As it sounds like you are strapped for cash I suspect you don't have the sort of reserve funds you need when renting a property out.

More here if you decide on this option.

G_M

rb29 wrote: »

if i sell for less would the bank except me paying up the shortfall , surely that would be better than handing keys back . what do you think?

As I said, when you sell you'll have to pay off the mortgage. How you do it is up to you: from the sale funds, from savings, a loan from mum/dad, rob a post office....

rb29

cant rent out no money behind me, and it was the halifax remax arranged it for me

savingmummy

How long has it been up for sale?

hcb42

how much can you save per month, while still paying off the mortgage, and living with family.

You need to save your way out of this mess unfortunately