Repossesion

Bella_Smythe

well things are finally moving and e have had letters from The Leeds and the courts, court date set for 7th May for repossession hearing.
Now we don't mind about the re possession, in fact we were advised to stop paying mortgage in order to save up for bankruptcy and deposit/bond on a rental house. So do we have to actually turn up at court or fill in any of the court documents? will it make a difference if we dont?
also should we phone The Leeds and ask about a voluntary repossession? like just sending the keys back? I have read that you need to be very careful at this point not to sign anything that will make you still liable for any shortfall even after bankruptcy.
just wondered what the best course of action now is? if this post would be better on a different forum just let me know
Bella

tigerfeet2006

Just return the papers to the court saying that you want the house repo'd and they can go ahead and do it just so the judge knows not to give you a chance to make a deal with the mortgage co. I wouldn't worry about voluntary repo as it has gone this far and will be over soon. If you fancy turning up then do but it is not imperitive you do.

SteveABC

Same situation for me.

I didn't turn up - I just wrote to the court as a matter of courtesy to say I wasn't contesting anything and I didn't complete any of the forms.

It was all just a formality really.

Bella_Smythe

Hi SteveABC

after repossession did you subsequently go bankrupt? we will have to do this because of the negative equity. Also are you renting now and have you found it difficult to rent?
Guess Im just trying to find out someone has been through this process and come out the other side!

Bella

Euphoria1z

what are the consequences of not going bankrupt? what do the mortgage lenders do to come after the shortfall? is it just the usual bailiffs letters/phone calls and visits or is it more serious like court sheriffs?

SteveABC

Hi Bella - sorry for not getting back to you sooner.

It was the other way around for me. I left my mortgaged property empty and secured a private rental tenancy BEFORE I went BR (I went BR the following week).

I stopped paying the mortgage and the secured loan the month I walked away from the house and took on the rental property (so there was no issue with credit checks at that point in time).

The house was then empty for a year (and I just ignored any contact from the mortgage lender and secured lender - you need to hold your nerve though!). Eventually Northern Rock started repossession proceedings a year later.

So I was already BR, and when the repossession actually took place the negative equity resulting from it (and the secured loan) fell into my BR.

As I said before, I didn't go to court or complete any forms and, most importantly, did not sign ANYTHING from the lender (i.e. a deed of acknowledgement, which would make you liable for the shortfall!!)

Hope that helps and good luck.

tiggerbodhi

Euphoria1z wrote: »

what are the consequences of not going bankrupt? what do the mortgage lenders do to come after the shortfall? is it just the usual bailiffs letters/phone calls and visits or is it more serious like court sheriffs?

It is the "usual" and probably due to sums involved they will pursue you with a vigour slightly higher than if it was a £1K credit card as there is money to be made from carrying on chasing you, you cant be Jailed for it or thrown in Debtors prison (no matter how much Daily Mail readers would want you to be!) but Bailiffs and court sheriffs would be the norm.

alastairq

I agree with Steve..best to stop paying mortgages, etc...& move to a nice rented home..[preferably one that would be satisfactory for 5 or 6 years at least?]

By doing this [plus, organising basic bank accounts, etc etc].....one avoids the effect of an adverse mark on one's credit files [the BR, for example]....and only petition BR once everything else is sorted.

There is no rush...once the decision is made.