Hand back keys

Kez100

mlz1413 wrote: »

Back in the late 80's my ex-boyfriend bought a flat which then plummetted in value, he handed the keys back because he had paid for an Indemnity Insurance when he bought the flat, I know the year prior to that I had bought a house and the imdenity was compulsory I remember having to find yet another £200 to pay it.

Anyway when he handed flat back the indemnity policy covered any shortfall, because that is excatly what it is for, the bank insurancing themselves against you.

I haven't heard of this type of policy recently but it's get to be worth asking your lender if they made you pay for it with the initial mortgage.

Those policies didn;t cover us even though we paid them...the insurers who had to pay out on negative equity could still come after us for the loss!

lynnexxxo

nicklad wrote: »

Thanks for your constructive 20/20 hindsight comments.

I think if you try posting a little more information on your predicament then we can try and offer some constructive advice. Most people (there are always a few exceptions) here will try to help you the best we can.

To answer your intial question though - the bank will sell your flat at whatever price they can get, you will be liable for any shortfall and will have to pay huge charges to the bank.

If you sold the property yourself at the same auction and achieved the same selling price you would be better off as you would avoid bank charges. Although you would still have to pay any negative equity.
Oh and your credit rating wouldn't be shot to pieces (which will be important if you want to remortgage your home once your fixed deal ends)

BobProperty

mpsavuk wrote: »

Nowhere to run, nowhere to hide.

Has "Jingle Mail" finally arrived in the UK?

Started to read this thread and that phrase came to mind, too.

nicklad

Thanks lynnexxxo. My comment was aimed at one person in particular.