Considering voluntary repossession

pmlindyloo

There is some useful information here:

http://www.adviceguide.org.uk/england/debt_e/debt_mortgage_problems_ew/debt_how_to_sort_out_your_mortgage_problems_e/selling_your_property_to_clear_mortgage_debts.htm

about why it is not a good idea to 'hand back the keys'.

You haven't mentioned mortgage arrears so I am assuming that you are still paying your mortgage.

In view of the fact that you want to move because the house is in disrepair as much as the anti social behaviour then I believe your best option is to find some money to do the obvious repairs -basically the ones that will make selling your house easier (more advice if you give us a list!)

So how to achieve that?

Check that you are receiving all the benefits you're entitled to (use the calculator on www.turn2us.org.uk - click Benefits Search and you will see it)

See if you can up your income in any other way - overtime/2nd job

Reduce your income - lots of help on this website to cut expenditure.

And finally, as an alternative, speak to your mortgage lender, explain the situation and see if they will give you a mortgage holiday so that you can us the mortgage money for the repairs.

Of course you could just default on your mortgage payments and use the money this way.

If you can spend a little money on making the house presentable and put it up at a reasonable price then someone should buy it. You should not have to pay out any money until you sell the house as most expenses can be deducted from any equity. If there turns out to be no equity after the mortgage is repaid then you will have to treat monies owed as non priority debts.

If you are unhappy/not willing/able to do this then just put it up for sale and accept whatever is offered.

Personally I believe you can add thousands to a property by tweaking certain things that do not cost a huge amount of money - as I said give us a list and the DIY experts can help.

mummyroysof3

What do houses on your street sell for normally? Is your plan to go into rented or do you need enough after mortgage paid back for a deposit from sale?

jdogg1976

wwtrend wrote: »

Not all companies that advertise we buy houses make offers below market value. I know this because I have one and work alongside a number of others where we specialise in properties where people have difficulties selling. Up and down the country there are property meetings. I don't know what area you live in but if you check out the property investors network you will find these meetings. Get in quick because there are no meetings in August. Contact the organiser and you will get the first meeting free. You could also ask your local organiser to put you in touch with someone who would offer you market price. Market price would be on your house in it's current condition. Kitchen roofs falling in are normal repairs for property investors. You also may be interested in making part of the deal for the property investor to find you some options for somewhere else to live within your budget and even to look for somewhere else where you can get back on the property ladder and minimize the length of time you have to pay dead rent. Some companies are good and some are not so good so it's the same as everything else on the market.

There's a big meeting in Berkshire tonight then next week in Leeds, Manchester, Newcastle London and other places. Would love to help you myself but can't send my details. With something as big as a house don't give up because you had a bad experience with one company. There are people who specialise in getting property below market value and very often they work involves repossessions. So the previous advise about handing back the keys is correct. Please try finding a decent company to buy your house offering market value and no fees to seller as an option before you consider AVS because your credit rating is something really worth protecting. It's just an option worth exploring properly can't hurt might help! I know you are probably feeling low at the moment with everything going on but it will pay to make some effort now instead of looking for a quick and easy solution of giving up. The beauty of finding the right people to take on your property is we don't like to see someone fall off the ladder but taking a step back is sometimes necessary and no-one goes through life without some hiccups. Getting info on all your options is important before making your final decision.

I would have liked to meet some people I know now when I first had a problem and had to make decisions by myself when I feeling the lowest. You have each other, supportive parents and people who care enough to give others then will never know or meet sound advice. Keep strong your options are far more than you believe at present and you need them all in a row with the pros and cons of each before making a final decision.

Thank you so much for taking the time to give me such an in depth reply. That sounds promising, however I'm in Glasgow.

jdogg1976

Annisele wrote: »

Usually the buyer pays for the actual survey, but the seller does have to pay for an energy performance certificate (which you can sometimes get for £60 or so).

If you can't afford that, it could be worth you asking your lender about an assisted voluntary sale. With an AVS, you stay in your house until it is sold, and the lender covers some of the costs of the sale - but both AVS and repossession will trash your credit rating. If you're not worried about protecting your credit rating, AVS is *probably* a better option than repossession - but the lender doesn't have to offer it.

Shelter should be able to give you some good advice - but be patient with them, they're very busy.

I'm not bothered about the credit rating too much, already have a bad credit rating.

jdogg1976

GM11 wrote: »

try the auction route also. It's a real shame you are being hounded out, have you been to the police or council and looked into the ASBO route? i would exhaust all other options before i went down the repo path. it may seem a temptation now because it will let you see a light at the end of the tunnel but later you will regret.
with a little thought and creativity a house can be tarted up with little money, i feel for you, in this day and age this kind of thing shouldn't happen!

Thanks I will look into auction route. I have reported everything to police but not much they can do as I haven't seen who's done it.

I actually have a suspicion my next door neighbour has something to do with it but its terrible to accuse them with no proof.

jdogg1976

I_have_spoken wrote: »

Can you get the bizzies off their backsides by escalating this to hate crime (race, disability, faith etc.)?

Police are not much use I'm afraid.

jdogg1976

pinkteapot wrote: »

If it's repossessed it will be sold by the bank for a rock bottom price. If what they get for it is less than the mortgage you owe, they'll chase you for the difference, which you will be legally liable for. You'll have to enter some sort of repayment agreement with them end up going down the bankruptcy route.

I'm not saying this to be mean, just to make sure you're aware of what the repercussions will be.

Have you got any idea of what it would sell for on the open market? People will buy houses that need work, so long as they're priced accordingly. If it's worth £50k on the market, it'll see for a lot less if it gets repossessed. If at all possible, sell normally at a knock-down price for a quick sale.

I remortgaged about three or four years ago and got approx £70k. Next door bought theirs couple of years ago for about £80k, albeit theirs had been done up. I'm convinced despite everything it's still got to be worth more than is left on my mortgage which is about £47k but I just can't see me being able to sell it without making improvements and I just can't afford to do that.

I definitely don't want to go down the bankruptcy route.

jdogg1976

I will respond to the rest later. Thanks again guys. Need to get back to work.

lessonlearned

Sorry to hear your woes.

I would definitely advise you not to go down the repossession route. It really is not as simple as just handing over the keys.

You say you credit rating is bad, repossession would make matters far worse and you could end up in a downward spiral of debt and being forced into even more unsatisfactory housing.

Sell your property exactly as it is. Don't spend a further £0-01p on it - other than the EPC report which you will have to have in order for the property to go on the market.

Get the EA's round for valuations and also investigate the auction route.

Don't bother with repairs (unless you are at risk) and don't bother trying to "tart it up". There are always investors looking for projects. Plenty of people want "fixer uppers" and are happy enough to buy as seen - as long as the price is right.

I'm currently buying a "fixer upper". I paid around 20% lower than the market value of a property which is in good nick. Most investors will be looking at that kind of margin.

Don't be panicked into making the wrong decision just for the sake of speed. Take a bit of time to achieve the best result you can. Even if you go to auction you should be able to clear that £47k mortgage and pay your costs. You might even have a little left over as a rental deposit or rainy day fund. If you go the repossession route you risk losing the shirt on your back and still being liable for mortgage repayments.

If the situation with your neighbour is really dire and you feel threatened then beef up your security. Outside lights, extra locks and bolts, bars at the window if necessary.....Whatever it takes to make you feel safer.

The police may not be interested in tackling the behaviour of your anti-social neighbours but they should send someone from their security advisory service to help you make your property more secure.

Good luck.

pmlindyloo

lessonlearned wrote: »

Sorry to hear your woes.

I would definitely advise you not to go down the repossession route. It really is not as simple as just handing over the keys.

You say you credit rating is bad, repossession would make matters far worse and you could end up in a downward spiral of debt and being forced into even more unsatisfactory housing.

Sell your property exactly as it is. Don't spend a further £0-01p on it - other than the EPC report which you will have to have in order for the property to go on the market.

Get the EA's round for valuations and also investigate the auction route.

Don't bother with repairs (unless you are at risk) and don't bother trying to "tart it up". There are always investors looking for projects. Plenty of people want "fixer uppers" and are happy enough to buy as seen - as long as the price is right.

I'm currently buying a "fixer upper". I paid around 20% lower than the market value of a property which is in good nick. Most investors will be looking at that kind of margin.

Don't be panicked into making the wrong decision just for the sake of speed. Take a bit of time to achieve the best result you can. Even if you go to auction you should be able to clear that £47k mortgage and pay your costs. You might even have a little left over as a rental deposit or rainy day fund. If you go the repossession route you risk losing the shirt on your back and still being liable for mortgage repayments.

If the situation with your neighbour is really dire and you feel threatened then beef up your security. Outside lights, extra locks and bolts, bars at the window if necessary.....Whatever it takes to make you feel safer.

The police may not be interested in tackling the behaviour of your anti-social neighbours but they should send someone from their security advisory service to help you make your property more secure.

Good luck.

Whilst I agree with most of what you say - always another point of view - I would be very careful as regarding beefing up the security. Some of this may be like a red rag to a potential buyer. If I saw a property with bars at the windows I would run a mile.:)