Help with voluntary repossession

Capster

I have been paying interest only on my mortgage for 3 years but moved into sheltered accommodation 2 years ago for health reasons. I have been keeping both properties going on my sole income. My house has been up for sale for 30 months despite marketing and reducing it to £59,000 - the amount of my outstanding mortgage. I have paid £9000 in interest payments and cannot now maintain that on my sole income. Any advice about surrendering the property? I have also been under a debt management programme for 4 years. Any advice would be appreciated.

opinions4u

Talk to CAB or Shelter.

Major implications that will leave you liable for any shortfall.

Thrugelmir

Speak to your lender as well as soon as possible.

dotdash79

Can you rent it out?

Thrugelmir

dotdash79 wrote: »

Can you rent it out?

Doesn't provide a long term solution though. If anything compounds the risk of even greater financial loss.

Tahlullah

Most Local Authorities employ / fund a Mortgage Rescue Worker. They may be employed in the Housing dept or even the CAB. The Government put the funds into place a few years ago to assist people who are at risk of losing their home.

There are about 3 different schemes that can be accessed to support you to help pay the mortgate, get a breathing space etc, which hopefully buys time to let you sell.

There is no such thing as voluntarily handing the property back. All that will happen is the mortgage company will sell the property as quickly as possible, probably at well under the market vale, and then chase you for the difference.

Try to locate the Mortgage Rescue Worker local to where you live. If not, then the next best thing is to negotiate with your lender to perhaps defer payments, mortgage holiday, restructure the repayments etc so as to again, buy you time to sell.

Thrugelmir

Tahlullah wrote: »

There is no such thing as voluntarily handing the property back. All that will happen is the mortgage company will sell the property as quickly as possible, probably at well under the market vale, and then chase you for the difference.

Voluntary rather than forced avoids incurring additional costs.

Lenders have a responsibility to the debtor to achieve the best possible price for the property. Market value is what someone is prepared to pay for the property.

silvercar

My house has been up for sale for 30 months despite marketing and reducing it to £59,000 - the amount of my outstanding mortgage.

You have to address this. What is the property really worth? What have similar properties sold for?

30 months is a stupidly long time for a property to be seriously on the market.