Do I voluntary Surrendor My home?? Please help :(

Why-oh-Why_3

Hi all, Not posted for a little while, But I have been struggling on my Mortgage since October, Was going to go Bankrupt but trying to avoid it if possible.

I do not want a respossesion on my credit file, Today whilst looking into renting I was told by there mortgage advisor that handing back the keys does not have as big effect on my credit as a repo' would. Has anyone had similar experience and can give any advice on this, What to do or how to go about it and am I best being repossesed or handing back, remembering I want to avoid stress and upset, I just want to start again

Bankruptcy is still an option but I just cant get my head into the idea of doing it and it scares me I want to be able to live comfortably in a nice little house and start a fresh but repay things slowly.

Help?????

silvercar

Can you sell it yourself?

Have you thought where you will live?

MammaCas

Hello there

I too was in a similar situation my mortgage went up by £400 per month and we were struggling before that to be honest.

My advice is to ring one of the debt charities, CCCS, National Debtline and see what they advise you to do. Once you have made the call you will feel so much better.

It may be that you could privately rent somewhere for much cheaper and enter a debt management plan, or it maybe that Bankruptcy is the best option, but they will give you the advice.

My personal situation is that we are handing the keys back, we privately rented from February (for half the mortgage payments), and we have to go BR because there is no money left after bills to pay towards the debt.

Making the decision is the hardest part, once you know what you are doing you will feel much better.

Take care and keep posting

xx

Toon_Dave

hi mammacas,

thanks for your post. i think it shows that others are making same decisions. i too am going to hand keys back to OR when i go BR. i have decided after plenty of advice from the CCCS and CAB so i think that why o why should speak to them as you have suggested.

Dave

fiveyearplan

As MammaCas says you will feel better after speaking to CCCS or CAB. They'll be able to let you know what choices you have and then you'll be able to come to the decision that is right for you. Good luck whatever you decide.

K-lo

Hi

Done this exact same thing last year, and was the best thing I have did. The mad thing was that I acually sold the house myself but my lender would not give me the shortfall. So I voluntarily hand the keys in...

However make sure you have a rented property lined up before handing the keys in..

It also does not show up as bad on my credit file

Toon_Dave

Good morning K-lo.

im doing the same, looking to find a rental property today then save money for BR and fees by stopping paying all debts and mortgage and SL.

i too have heard the credit file isnt as badly affected due to not being in arrears for long and also voluntary repo as apposed to forced.

Im sure you have helped with comments, the more we hear of peoples own situations and the outcome (light at the end of the tunnel!) the easier it will be for decisions to be made.

Thank you.
Dave

So_Sad_Angel

Hi Everyone,

I`m in same situation as if I leave house (mtge & SL) & return keys then I can afford rest of outgoings so won`t have to go BR & lose job. House in neg equity & with SL costs £1800 pm...rent only £695.

As W-O-W asked I`m wondering effect on credit file but also will mtge or SL company make me BR anyway?

Thanks W-O-W for asking intial question.

Angelx

Toon_Dave

good morning Angel,

Hope you slept well and good luck again for today.

With regards to the Mortgage and SL, as i understand it - if you hand keys back any shortfall on the sale of the property is then transferred to non-secured debt (as you no longer have property to secure). Therefore that will increase your unsecured debt, this will probably then be subject to an IVA (please use a free company for set-up) or DMP or as possibly will be too high to pay monthly may be pushed towards BR.

Do you know how much would be left to pay back if house sold for top whack?

How much would that make the Unsecured debt upto?

How much disposable income do you think would be left after paying Rent and monthly essential expenditure - utilities, council tax etc?

I didnt want to put a downer on anything just wanted to put accross possible outcomes - i appreciate the BR would affect you job big style so you may not have an option but to set up the IVA (if you want to keep job?)

Dave.

So_Sad_Angel

Morning to you Dave,

If I just handed keys back I think the house would sell for lot less as renovations not quite finished so neg eq c25k (i`m guessing here)

That would increase unsec debt to 75k (sole name) but ...& heres where gets tricky...if OH is bankrupt & shortfall is joint then will it just be set up as unsecured in my sole name afterwards.

If this is case I may as well just accept BR as, although I could afford to service that level of debt on my salary, (esp if only paying rent) why should I work long hours in a stressful job & still have no disposable left at the end of the month!!!!...BR will defo mean loss of job...but lower salary means better quality of life & this is something I need.

Still not recvd CCCS docs yet & hope this will give guidance.

Good luck with viewing today...I`m seeing rental at 2.30pm but get to get car MOT first!!! don`t know how I`ll pay though!!

Angelxx

Toon_Dave

Hi Angel,

i do believe that the shortfall would be transferred as a joint debt, you are classed as joint and severlly liable. if no security then would be unsecured. As OH would be BR it could not transfer to him so i think unfortunately it would pass to you (a SH*TER i know)..

with regards to servicing that level of debt on your salary, what if anything increases, any unforeseen circumstances etc? i would hate to think you get stuck with something when other options may save you sooner..not sure, again CCCS advice would tell you more. Have you tried the CCCS online debt remedy calculator? if not why not try different examples - one with you paying all debts from you salary including the potential shortfall from mortgage? and any other financial situations - its anonymous and so you can save and check back when have further updates on finances etc., just a thought.

Is the loss of job through BR a definate?? have you spoken to HR dept or ask someone anonymously to find out? just coz it says in contract in may not actually be the case?, obviously i dont know what you do for a living so im not sure of situation..if you want to say then please feel free to PM me, only if you want to...no pressure sweetie on that one.

On a slightly lighter note regarding the MOT....do you have nice legs??...may be a flash etc may get a reduction!!! hehe....with me though i would have mine increased or kicked out the garage.

Good luck and let us know how you go.

Dave. X