Halifax refuse surrender of property

mark61120

My friend isn't well, which is why she has moved to sheltered accommodation. She is seeing some light at the end of the tunnel with regards to getting the accommodation and (semi)shut of the house. She knows she will have to go bankrupt to clear the debt, but that is just one thing. Selling the house at auction would be another item on the agenda and she would be worrying more about things (doesn't need more worries as she had a heart attack last year amongst other illnesses).
The house did sell, but the buyer pulled out at the last minute because of an article slating that design of house having cavity wall insulation (I had the MD of the cavity wall insulation group conduct a survey which said everything was fine, but the buyer didn't want to know). Then the heart attack happened and my friend was already due to go to court to have the house repossessed. The heart attack put that on hold. She just wants shut of the house now (off the list of worries), hence surrendering the keys.

Two accounts are because I forgot my user name on the pc I was using at the time, and so started a new one. I am now back on my own pc (and I am currently unsure as to which username I am logged in as. Could be either! Apologies!
Mark

silvercar

HappyMJ wrote: »

....Your friend is still liable for the payments on the mortgage until the property is sold...plus loads of fees and charges if surrendering. It will cost thousands. Why can't the friend send the property to auction themselves? Or sell privately.

There is no equity and the friend intends going bankrupt.

So there is no point selling the property themselves. No point making further payments, no point worrying about it.

One of the few situations where making payments is spending money that will be lost.

If there was some equity or the friend wasn't definitely going bankrupt there is something to salvage, no equity and bankruptcy means it could be time to walk away.

fermi

http://debtcamel.co.uk/repossession-deed-of-acknowledgement/

mark61120

No problem regarding the debt as it will be included in the bankruptcy.

No payments have been made for a while (except some money towards the interest by the DWP, which she has now stopped as she will be claiming housing benefit for the sheltered accommodation).

She is just awaiting acknowledgement from the Halifax that they have accepted the house surrender.

Again, thank you all for your input.
Mark

amnblog

Your friend needs to see a solicitor if they can afford to or the Citizens Advice Bureau if they cannot.


You don't need to be in the loop if you give your friend the wrong advice from here which later backfires.