Voluntary surrender of property form - should I sign it?

MammaCas

Dear all

We have tried to vol. surrender our house to the mortgage company with our own letter, however they will only accept their signed form...details are below...should we sign it or not? Is this a question for the OR?

''I/We understand that in surrendering the keys to the property we are asking SPML to take possession of the property and to sell at the best poss. price. I/We note that the names of all parties to the mortgage will be added to the credit register and the property will be deemed to be in repossession. I/We understand that I/we are responsible for all invoices, insurances and fees involved in the sale of the property.

I/We understand that I/we are responsible for any losses incurred if the sale price of the property is less than the mortgage, in addition to insurance fees and invoices incurred in the possession and the sale of property. If there is a loss, I/we understand that we must make realistic proposals to SPML to repay the loss. I/We also note that interest wil continue to be charged on the loan until the monies from the sale of the property are received by SPML.

I/We understandthat if we change address and/or phone numbers, we must provide the new details to SPML until such time as any loss is cleared in full and SPML confirms to this me/us. I/We understand that SPML can only accept surrender of the keys if this form is signed by all parties to the mortgage. I/We also note that SMPL request that we immediately return the keys under seperate cover and by registered post to the above address''


Then signatures etc....

Do we sign it?

Thanks in advance for any advice

MC xx

skylight

I know from reading these forums that some people have ignored that form and sent their own, and others cross out the clauses they dont agree with (like still owing money, you are bankrupt afterall!) and then signed (after copying) and sent that back.

I would suggest having a chat with your OR.

AmIdone4?

Hi mammacas ,

Unfortunately, I don't have any experience in this area, but I do have experience in signing/agreeing to stuff that in hindsight I wish I hadn't and that cause me (on bad days when I need someone to blame/be angry at:rolleyes:) intense discomfort when thinking of...

As skylight says, I have read of this forum (might have been scarlet1974, not sure!!, I would have a look but I'm mega busy this mo') that people have not signed voluntary forms for some reasons... I wonder if it's the agreeing to be liable for charges/shortfalls in sale price (ie. why should they care if you have to fork out extra money?) and have sent their own forms (maybe? like the one they are not accepting from yourself!)... As I said not quite sure about this topic, but felt the need to offer a little support. Definately get some more thoughts on this before doing anything

Cheers

fermi

Whatever you do, do not sign those forms as they are.

It's best to talk to your OR about this, but if it was me I would ignore their form and write my own letter as Scarlett did. Whether they choose to "accept" it or not isn't your problem. If they don't, then they are just making more hassle/costs for themselves, not you.

Scarlett.1974

Hi MC

Seeing that you're going through this at a different stage to us (we started it weeks before we went BR, as you know) I would discuss it with your OR before signing anything.

The only disadvantage that I can see to NOT signing it, is that it does make the whole process drag on for a lot longer :rolleyes: Northern Rock told us they would not accept my letter as Voluntary Surrender so would have to go down the formal reposession route. We've only just this week had a letter from them saying that they will start official court proceedings if they haven't received full payment of all arrears within 7 days. Don't hold your breath there NR

Richard_S

Hi MamaCas,

I completely agree with what has already been said; don't sign the forms.

It's no concern of yours if they have to go the repossession route; just let them get on with it.

You're not liable for any shortfall, but signing those forms will make things very complicated for you.

Regards

Richard

Cinderbrook

Well I signed the form I was sent because I wanted to get the property off my hands, there were many problems with it. The form I was sent had barely anything on it just space to put my current address and and date of surrender, generously, I sent them the key as well. It is in very negative equity and will be included in my BR so I really don't have much interest in it. I don't really see the point in writing your own letter. If they sell it and make a profit that will only be taken into paying your other creditors off. The quicker you do it the quicker the lender has to deal with it and add to their book of repos. Once done you can think about sorting out a rented home.
C

fermi

The important thing is not to sign any forn that states you will be liable for a shortfall or fees. While they should still be included in the BR if you do, some people have found that signing a form with these terms has resulted in a complicated and unnecessary legal wrangle. There is no reason to sign anything if you are not happy with it's terms.

As said, if you write your own letter and it is accepted then that is easiest; but if they won't accept it then the mortgage company are only shooting themselves in the foot.:rolleyes:

wherediditallgo

Please don't sign any forms that you don't (a) fully understand, & (b) don't fully accept/agree with. Forms wanting something from you often commit you to something you didn't fully realise was part of it until too late in the day. Speak to your OR about the form, & only sign a form/letter that you fully understand or have put together yourself.

MammaCas

Hiya

Thanks to all, I thought as much, but wanted to check. Would rather 'get it over with' to be honest, but they won't accept vol. repo. without this letter being signed so looks like they will have to go down the repo route!

MC x

silvercar

I'm idly wondering if they have the right to refuse to accept a hand written voluntary repossession letter?

If it wasn't in the original terms and conditions of your mortgage that a voluntary repossession could only be effected by the completion of the lenders own form, do they have the right to ignore your letter to them?