Is voluntary surrender an option?

Skiddaw1

I think you're right to get shot of it OP, despite the shortfall. It's clearly taking its toll on you emotionally as well as financially. OK you'll have to take a hit but at least you can then start to move forward again. Good luck- hope the mortgage company will play ball.

Scotsgirl74

Thank you. Fingers crossed

markin

You will trash your credit rating if you hand it back and have no way to pay up the balance.


I can't see them not chasing you for it, and you have assets they could take.


The only way out i see is if you cant get a re-morg, is to downsize or sell up both homes and rent your self!

Doozergirl

Scotsgirl74 wrote: »

I think I’ve definitely made my mind up. Going to call mortgage company after work. I know there will be a shortfall. I’m hoping there would be some arrangement we could come to without affecting my current home. Equity from my isn’t an option due to me credit rating which is a shame as we have a low mortgage and a lot of equity

It might be worth speaking to a whole of market mortgage broker to see if you can borrow the shortfall.

If you have 'bad credit' does that mean that you have an existing debt problem?

Debt really doesn't mean losing your main home. It's almost certainly worth going to the Debt Free Wannabe board and chatting through your entire situation.

I have to say, I did similar by buying a property for family to live in at the peak of the market. Thankfully, I had equity but it was problem after problem and the day I let it go (at a loss of about £30k) was absolutely brilliant! Should have made the decision well before we did.

There is indeed a thing called sending good money after bad and I think you're making the right decision, it's just how you work the debt situation. Truth is, it can't really be worse than it is now because you're borrowing so much more at the moment and paying nothing back.

There are many debt solutions.
https://forums.moneysavingexpert.com/forumdisplay.php?f=76

Scotsgirl74

Just an Hofstra. Had a long conversation tonight with the sale with shortfall team. The girl was lovely even when I burst into tears. I’m going ahead with putting the flat on the market and hopefully I can get an offer that they will accept. We will then come to an agreement about a monthly payment. I’m so relieved. I was never not going to pay what I owe but it’s such a relief to finally be making a start. Being a reluctant landlord has caused me so much stress and money and although I’ll be paying the shortfall for a long time there is light at the end of the tunnel.

Skiddaw1

Oh that's truly good news Scotsgirl! So glad they've agreed to work with you and be accommodating. Hope it sells soon....

Scotsgirl74

Fingers crossed. Thank you

Doozergirl

Wishing you lots and lots of luck and positive vibes for the best sale you can get.

It will be a relief, I promise.

It's also great when the people you think are going to be horrid are, in fact, very nice x

Thrugelmir

Scotsgirl74 wrote: »

Fingers crossed. Thank you

Beneficial to the lender to work through this with you. In a sense no one wins if the situation becomes messy. Being open and transparent is by far the best approach.