Tidying up loose ends

abcdave

ukamber1 wrote: »

I guess the quickest way to start repossession process, is to post the keys back to the Lender by special delivery saying you giving up the property as a voluntary repossession...

Hope you get things sorted

I tried that July 2015.. still no joy

ukamber1

abcdave wrote: »

I tried that July 2015.. still no joy

Sorry I couldnt help anymore....you would think Lender would want to start repossession as soon as possible so they could get the house back on the market to cover the balance of the mortgage...really surprised they havent done this. I was in the same situation over 6 years ago. Default date was set 6 months after last payment...I returned keys as part of a voluntary repossession, property was sold by the Lender 5 months later and shortfall included in Bankruptcy...

Hope you can find away to sort this out, as the last thing you need after discharge is still having to worry about this...The main thing to remember tho, once the house is sold, any shortfall automatically becomes unsecured debt and "will" be included in your bankruptcy, so at least you have peace of mind to know that no one can chase you about it.....

alltaken

NotEvanAPot wrote: »

I'm hoping you mistyped absolve in the above?

BR is not about removing guilt or showing innocence in debts run up. It is a legal protection, an extreme remedy that is there for when events do not run a positive course. It does not come with an addendum that the BR individual is innocent or guilty in the financial mismanagement, a BRU/O would show guilt of deliberate or untoward behaviour.

As stated, the mortgage lender cannot be forced to take possession of the property, and until they do so, any party to the mortgage remains liable for council tax, excepting any period under which it is not due by a party (tax year when BR begins or part thereof).

I did indeed :rotfl: 'Insolve one's debt', or to that effect. I think you knew that though

Thanks all for the information.

worriedmamma

Alltaken, this is really surprising, as pp's have said you'd think they lender would want some payment - i.e. the property sold to pay off what can be paid off the mortgage.

Have you spoken to any CAB type about this? Very strange indeed... I hope it's sorted for you soon though, must be a right pain in the rear!

luvchocolate

Unfortunately its not uncommon.

LoveLifeAgain

Sorry to butt in, just a query out of interest but who it is that has to insure the house?


Seems very odd that they would let it go on this long.


Agree wholeheartedly that they should NOT sign anything, and good luck getting it dealt with soon.

luvchocolate

Hi the owner has to insure the property, so in this case the poster on this thread.
Once its repossessed that changes to the lender but unfortunately this can in some cases take a long time.

NotEvanAPot

Obligation to insure is a contractual clause, not a legal obligation such as car insurance.

I am pretty sure non-payment of mortgage trumps a lapse in insurance, so I would understand the notification of forfeiting the property would stand as notice that their asset is an uninsured risk.

Should the house be demolished by what would be an insured incident, the bankruptcy would swallow up the adjudged "debt" should a lender hopelessly pursue it through the courts.

Point being, highlighting this to the bank (formation of contract date, bankruptcy date, risk of loss to uninsured property etc) may speed the process alone. I do doubt this however, if they haven't flinched in 18 months.

luvchocolate

^^^^^^^^^^^^^^^^^^ good points above

abcdave

Funnily enough, I did not renew my home insurance when it lapsed. Perhaps this is indeed a point worth pointing out to the bank.