Voluntary Repossession?

greenwichgirl

Does such a thing exist?


This may sound like a rubbish questions but what would happen if I just stopped paying the mortgage? Can I just hand the keys back to the bank? What would the implications be further down the line???

silvercar

Your credit rating would be stuffed. You would have difficulty getting a decent rate mortgage for a good few years.

Trying to put some logic to your posting, if you are thinking of voluntary repossession then you just want to get rid, so why os your reserve so much higher than your mortgage. If you go for VR, the mortgage company are more than likely going to auction it, so do yourself a favour and reduce the reserve. At least that way your credit rating will be unaffected.

PasturesNew

Don't click the link above. It's rude, it's naked and it's Bruno

Jorgan_2

greenwichgirl wrote: »

The auctioneers recommended the reserve price of £130k and today called suggesting the discretion thing. I am not going to pull out of the auction at this stage but the only other way I can see out of it would be to get repossessed. Having being out of the private rental sector for about a decade, do rental agents check your credit rating? Frankly having had my fingers burnt so badly with "home" ownership (have not really ever called this place home) I am not too bothered about my credit rating in relation to mortgages.

Its not just your credit rating relating to mortgages that will be stuffed, but your credit rating in general.

I agree with silvercar, lower the reserve if you want rid of the property, you will walk away with some money & an unaffected credit rating, as long as you clear the mortgage and any other charges that maybe on the property.

Pobby

!!!!!!,not Bruno again>he got barred from youtube,partly I think for all his mad rascist post but some how he is back there.

reidy100_2

Doesnt being Repossessed mean you have nil chance of renting either????

silvercar

is it an online auction? any chance of the lot number?

Seen one at the New Connaught Rooms, this thurday.

Doozergirl

What's all the legal stuff about collective enfranchisement in the paperwork? Have you managed to reach a deal over buying the freehold?

EDIT: I worked it out. I feel for you hun, but you're so close to resolving this aren't you? I feel sorry that you've taken the auction route. Couldn't you have taken the Right to Manage away from the Freeholder while you tried to sort out the purchase of the freehold/lease extension? At least that would stop any new bills arriving while you continue in pursuit of the freehold.

How much were they trying to charge you for the freehold?

Doozergirl

Do you know what the Right to Manage is, hun?

SouthCoast

The flat didn't meet the reserve at the auction (got to £125k)

The reserve was to high.

My mortgage is currently £112kish.

Can you do a deal with the top bidder?

silvercar

I hope the property company come up with more than the auction would have got, otherwise I would try and find out the bidder and let them have it.

If the place obviously makes you so unhappy, why was the reserve set so high?