Voluntary Repossession

riversidejayjay

Hi

just wondered if there is a template for writing a letter to my mortgage company telling them I want to give my house up.


Thanks

riversidejayjay

also i am going to phone them to let them know but do i do it and say i am moving out in say 2 weeks or do i move first then phone them and tell them I am giving it up - I have just sorted a house to rent and looking to move out in the next week or two.
Thanks

riversidejayjay

anyone ????

Deep_In_Debt

Hi

I can't help on your query but just to say that someone will be along to help.

So I'm just "bumping" your thread.

tripled

I don't know of any template letters I'm afraid, but you know you'll still be liable for the mortgage don't you, as well as any costs until the property is sold?

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

It might be worth giving your bank a call and asking for their procedure.

SteveABC

Are you going BR as well?

I wrote to my lender immediately after my BR and after I'd left the property and moved into rented accommodation.

I told them very little (this is what I was advised to do by CCCS at the time).

I simply told them (1) the property was now empty and that I would not be returning (2) that I was now BR (and enclosed my BR order) (3) that I would not be making anymore mortgage payments and (4) enclosed the keys.

I didn't specifically mention voluntary surrender, or repossession.

They wrote a few letters to me (whcich I got with a mail redirection), but didn't really give me any hassle.

Eventually (9 months later) they actually repossessed the house and I believe it was sold about three months after that, at which point all the secured debt fell into my BR.

I didn't comminicate with them after my initial letter and I didn't sign ANYTHING.

Hope this helps.

riversidejayjay

hi, yes i am going to declare myself bankrupt as I have many other debts as well, just was advised to find a rental property and move in before i went bankrupt which i have done.
thanks

fermi

An example from a previous thread.

http://forums.moneysavingexpert.com/showthread.html?t=715213

Not endorsing that at all, but gives you an idea....

piglet74

Before you hand the keys back, ring your lender and ask them if they offer assisted voluntary sales,

I just got one, if I hadn't got it, I was also handing my keys back,

The lender wrote off 90% of the shortfall and covered all the fees (EA and solicitor)

Its worth a try.

Good luck,

jamesd

As piglet74 suggested, if you can manage it, you'll do better by arranging a sale yourself with the consent or active help of the mortgage lender instead of using the repossession route. The property tends to fetch a higher price that way, in part because you're more likely to pay attention to keeping it looking presentable for buyers. So they know it's likely to be better for them as well as you. It also means that you wouldn't have a repossession of any sort that future mortgage lenders might ask about.