mortgage and secured lenders

andrewwales666

hi all,
i want give volentary repossession to my houe and im about to stop payments to my mortgage company and 2 other secured lenders to pay the bankruptsy and towards renting a new place,what should tell the lenders and mortgage company,should i tell them im going bankrupt of just say that im giving the house up,im in negative equity so the 2 secured lenders wont get anything from a sale.
andrew

cancatsdance

im interested in this as im doing the same.

longtermplanner

I assume you are still living in this house.

If so, do not tell the lenders you are going to go bankrupt. Just stop paying the mortgage and secured loans. It will take them a while to realise. When they contact you, say you are having some temporary financial problems and are about to take debt advice. The aim is to put them off taking any action until you move out, so you are in control of the process. You want to move when you want, not be evicted.

When you move out, then you can hand back the keys. At this point do not sign any thing without checking it out and never sign a Deed of Acknowledgement - see http://www.moneywise.co.uk/cards-loans/cut-your-debts/repossessed-borrowers-sign-any-forms-your-peril

2kadmin

Longtermplanner is spot on, don't tell them anything until your ready..

The one thing I would add, if your looking to rent privately apply sooner rather than later.. You much more likely to pass the letting agencies credit check before the mortgage non-payment hits your credit file.

Hope all goes well for you.

National_Debtline

Hi Andrew

Further to the useful advice given above, I just wanted to point out that your bankruptcy will automatically include anything and everything the secured lenders are unable to recover from the sale of your property, whenever that happens.

Good luck

Dennis @NDL

andrewwales666

hi,
thanks for the advise its helpful and reasuring

andrewwales666

hi all,
one of my secured loan lenders rang this morning whilst in bed,ive just stopped their direct debit so they wanted to know why,i was a bit sleepy when they rang and couldnt think straight and said im having problems and have spoken to the CAB,they are ringing back, what should i say and can i send a letter to them instead,im worried that under their questioning ill just tell them where to go as my head isnt right at the moment.

2kadmin

Hi,

Don't Panic! You have two options depending on your circumstances; how far are you from moving out of the house, and giving up possession?

If you are very close then I would tell all, tell them you have had to stop the direct debit as you cannot favour any particular creditor.. Once they have established that you cannot pay there is little more to discuss. Something like this should suffice "After taking professional advice and considering my options I have concluded that bankruptcy is inevitable, accordingly I have cancelled all direct debits and standing orders and will be making no further payments. I intend to move out of the premises as quickly as possible and surrender the keys to the mortgage company, you will hear from the official receiver in due course".

If you are a little way away they I might be tempted to say you are trying to consolidate you debt and would be looking to make a payment at the end of the month, the other delaying tactic you might want to use is ask them for a settlement figure.

Try and remember is there nothing really they can actually do! Personally I would tell friends and family there is a problem with home phone if you don't want them to know and pull it out of the wall, get a Pas As You Go phone and tell them to contact you on that.

Hope this helps, I appreciate that it is scary and some of the secured lenders have some pretty scary scripts about debt collectors and alike, but stay strong, you are completely in the right..

2k

tiggerbodhi

andrewwales666 wrote: »

im worried that under their questioning ill just tell them where to go as my head isnt right at the moment.

Hi, hopefully you are preparing for BR, got a new Bank Account etc, to stop them hassling you can you change your phone number?


You do not have to speak to them at all, when they ask you to "go through security" refuse or give wrong answers, stumps them and they go away, they will keep calling though so it maybe time to change phone numbers if you are not in the right place mentally to deal with them.


Remember even if you do tell them you are going BR and not paying them it will take them weeks to get their ar5e in gear to start any form of proceedings, they hate doing this, they would rather get you to agree to payment plans etc, Secured loan lenders do tend to have a nice line in threatening scripts involving "home visits by collection agents" or "baliffs" remember these have NO power of entry or enforcement without a court order.


Good luck, there is light at the end of the tunnel!

andrewwales666

thanks for the messages,im another 2 months away from having money to move so will ignore calls then few weeks before im ready to move ill tell them the situation.once again thanks it does help

bigjl

I would say there is not much point relying on your bank account remaining open as a definate.

Though Nationwide never closed my savings account.

I assumed it was closed till i got my annual statement shortly before my AD.

Barclays used to do basic account for non discharged. As did the Coop.

I opened my account after BR

A Cashplus pay as you go debit card is basically a bank account. The card actually has on it a sort code and account number and can be used for direct debits and standing orders. And you can pay your salary directly onto it.