Strategic Repossession

csgohan4

don't forget the irreparable damage to your credit file this will do. You may not be able to get a mortgage again or credit for a long time.

tom9980

csgohan4 wrote: »

don't forget the irreparable damage to your credit file this will do. You may not be able to get a mortgage again or credit for a long time.

I imagine bankruptcy is the only option and it could take 10 years or so from now to get back to this point again.

Frankly I would look at legal options and sue the LA for your losses, it would probably resolve quicker. It may be worth asking the banks legal department if they can help or advise you in anyway.

But honestly it's hard for anyone to advise you without facts.

waveneygnome

Another thought. Does your local authority offer any kind of landlord/rent scheme - i.e. you rent the house out to the Local Authority.

You need to buy time to help repair the reputation of the property. If the LA rents it from you, you would get less than market rent, but at least it would be some rent coming in to help offset your current rental costs.

Obviously you should tell your lender/get a Consent to Let - which may prove difficult given the circumstances/you relative low level of deposit - however if you can get through to an underwriter to explain the full facts, it would be in the Banks best interest also to wait until the property has had time to recover.

PixelPound

Why can you not live in it now? Is it you cannot because some authority (e.g. police, LA, etc) has said, or will not because the incident makes you feel you don't want to (e.g. feel unsafe, vulnerable, etc).
Just are they paying your rent, or is it because of the latter and you had both mortgage and rent to pay.

As has been said repossession is the worst scenario, yes whilst they will get an agency to market the property, they only do on a finite timescale and will reduce the price if needs be. Many potential buyers will be able to find out if its a repo (by asking) and know they have time to wait. Many wait knowing that the agency will reduce the price after a while. Since agencies have to advertise when they have received an offer for the house that has been accepted, potential buyers won't suddenly find it sold if they wait.

PixelPound

Have you done a search into people living in houses with a reputation?
http://www.theguardian.com/lifeandstyle/2003/dec/13/weekend.craigtaylor
http://www.xojane.com/it-happened-to-me/is-that-a-hotdog-what-i-found-in-my-house

danielanthony

I think banruptcy now would be your best option as it'll be over more quickly than repossession, then debt collectors and then bankruptcy later down the road if they can't sell it for the mortgage redemption figure and you can't make up the shortfall.

Just handing the property back will not get you out of this hole, you need to think about what loss the lender is going to incurr and what they're going to do to get it out of you.

MortgageMamma

Have you considered explaining this situation to the lender and asking if they can convert the mortgage to interest only just whilst you are not living in it, to free up a bit of money? Have you considered getting some benefits advice regarding housing benefit? if you are forced into renting another property because yours is uninhabitable perhaps there may be some help available? The important this is to prevent a repossession currently. As has been said it can leave you renting for a long time if that happens, but only you could say if that is a risk you are willing to take. There is after all much more to life than owning your home.