Handing Home Back to Mortgage company

sourcrates

This is something I have personal experience of, it is actually very simple, however, it may not be the best choice for you.

If you are determined to go down this road, all you do is write a letter of explanation to the mortgage provider, place it in a Jiffy bag, along with the house keys, and send to their head office Royal Mail Special Delivery.

They will then take possession of the property, the house will be sold, and any mortgage shortfall can be added to the IVA, but only under certain circumstances, (you will need to check this well beforehand).

You would have to privately rent afterward as essentially you have made yourself homeless.

Willing2Learn

Hi, I can only comment on the homelessness and intentionality. If your disability falls within a priority need category and your disability makes you vulnerable when compared to an ordinary person, then your local authority may have a duty to place you in temporary accommodation pending further enquiries. Your vulnerability may override intentionality.
https://www.nhas.org.uk/docs/Hlink_Vulnerability_Assessment_Guide.pdf


As far as future housing options are concerned, you would need the advice from a law centre or the Shelter housing advice line on 0808 800 4444

enthusiasticsaver

You will need to check with your council that handing the keys back is not you voluntarily making yourself homeless as they are less liable to give you help with emergency housing.

Normally I would say you should try and sell it yourself but if you are in negative equity that is more problematic. Has your wife spoken to the mortgage holder?

If she hands the keys back then they will take possession and sell it, pay any sale proceeds off the mortgage but she will be liable for the shortfall but it could be added to the IVA. If you are disabled the council may give you priority for accommodation so you need to speak to them as well. Do you have children?

fatbelly

Willing2Learn wrote: »

Hi, I can only comment on the homelessness and intentionality. If your disability falls within a priority need category and your disability makes you vulnerable when compared to an ordinary person, then your local authority may have a duty to place you in temporary accommodation pending further enquiries. Your vulnerability may override intentionality.
https://www.nhas.org.uk/docs/Hlink_Vulnerability_Assessment_Guide.pdf


As far as future housing options are concerned, you would need the advice from a law centre or the Shelter housing advice line on 0808 800 4444

That's a comprehensive document. Unfortunately it confirms the council would have a duty:

to provide short term accommodation for a homeless person who is intentionally homeless but is eligible for assistance and in priority need.


not long-term.

Willing2Learn

fatbelly wrote: »

That's a comprehensive document. Unfortunately it confirms the council would have a duty:

to provide short term accommodation for a homeless person who is intentionally homeless but is eligible for assistance and in priority need.


not long-term.

Getting in to temporary accommodation, pending further enquiries, is half the battle. It is then up to the applicant and their legal team to provide the medical evidence to prove vulnerability. If vulnerability can be proven, then the Local Authority may have no option but to accept a duty to permanently re-house.

In the OPs case, the vulnerability test depends on how their disability impacts on their daily life, whether being homeless could cause a deterioration of health, and whether this may put the applicant at risk of harm or detriment. Depending on the exact vulnerable status of the applicant, it may be that the case gets referred internally to adult social services for housing and support. Proven vulnerability will nearly always outweigh intentionality.

fatbelly

If you make yourself intentionally homeless without the means to find accommodation through your own resources...

then you have a real uphill battle.

Don't do it.

Willing2Learn

fatbelly wrote: »

If you make yourself intentionally homeless without the means to find accommodation through your own resources...

then you have a real uphill battle.

Don't do it.

I totally agree with you. It should be absolutely the last resort...

Kentish_Dave

sourcrates wrote: »

This is something I have personal experience of, it is actually very simple, however, it may not be the best choice for you.

If you are determined to go down this road, all you do is write a letter of explanation to the mortgage provider, place it in a Jiffy bag, along with the house keys, and send to their head office Royal Mail Special Delivery.

They will then take possession of the property, the house will be sold, and any mortgage shortfall can be added to the IVA, but only under certain circumstances, (you will need to check this well beforehand).

You would have to privately rent afterward as essentially you have made yourself homeless.

Mortgage shortfall, costs, and legal fees, not just the mortgage shortfall.

A_Random_Man

As other posters have send if the property has been sold at less than the mortgage then the mortgage company has a right to chase for the remainder of the debt, one other thing to bear in mind is that the mortgage company might have a mortgage indemnity guarantee or MIG for short which basically covers the lender if the party can't pay the mortgage or they take it in at a loss, to cut a long story short the lender might claim on the MIG policy and then the MIG insurance might chase her for the debt, I don't want to scare you it is a hypothetical scenario if the lender has taken out this policy