Getting house reposessed deliberately?

simplymyeye

Hi

If you go to Northern Rock and explain the situation they will give you consent to let the property. I work for a broker firm and lots of people do this for this precise reason. Sometimes they may charge an admin fee but this usually doesnt run higher than £50. The best way to find a tenant through work or friends try and do it yourself so you dont have to pay agent fees etc. At least this way it will give you some extra cash and fingers crossed by the time your mortgage is out of redemption then the market should be better. I know its differcult specially with the 100-125% mortgages. Hope you are able to get something sorted

silvercar

If you managed to sell the house for 140k, that would mean finding 5k between you. To me that sounds more preferable than going bankrupt.

Bankruptcy will make enormous debts in your credit rating, your ability to rent and may effect your careers.

Your other issue is that you both need to agree bankruptcy as if one goes bankrupt all the joint debt just becomes the other parties responsibility.

I think that you are unfortunate to be splitting up at the time that the credit crunch is hitting and house prices falling and having maxed out your borrowing.

We have taken mortgages at 3 times joint salaries three times over the last 20 years; we got away with it even through the last fall in house prices because we managed to obtain credit.

Have you thought of seeing if your ex could rent out a room to pay your share of the mortgage?

Cantdance_2

simplymyeye wrote: »

Hi

If you go to Northern Rock and explain the situation they will give you consent to let the property. I work for a broker firm and lots of people do this for this precise reason. Sometimes they may charge an admin fee but this usually doesnt run higher than £50. The best way to find a tenant through work or friends try and do it yourself so you dont have to pay agent fees etc. At least this way it will give you some extra cash and fingers crossed by the time your mortgage is out of redemption then the market should be better. I know its differcult specially with the 100-125% mortgages. Hope you are able to get something sorted

Thanks for this - very useful to know it might be possible!

I'm slightly wary about renting to someone without an agent - I presume we still need to do some kind of tenancy agreement.

I will try ringing and see what they say. I guess it's a gamble since the price
could well go down by more than £6K in the next year... at least we could get a few quid while we try and sell though.


Cheers

Cantdance_2

silvercar wrote: »

If you managed to sell the house for 140k, that would mean finding 5k between you. To me that sounds more preferable than going bankrupt.

Bankruptcy will make enormous debts in your credit rating, your ability to rent and may effect your careers.

Your other issue is that you both need to agree bankruptcy as if one goes bankrupt all the joint debt just becomes the other parties responsibility.

I think that you are unfortunate to be splitting up at the time that the credit crunch is hitting and house prices falling and having maxed out your borrowing.

We have taken mortgages at 3 times joint salaries three times over the last 20 years; we got away with it even through the last fall in house prices because we managed to obtain credit.

Have you thought of seeing if your ex could rent out a room to pay your share of the mortgage?

Thank you, and I apologise if I made it sound like bankruptcy was an attractive option, I really don't believe that.

You're completely right about potential impact to my career - I'm on a new project where I have to travel a lot and I need a corporate Amex card for that, which would almost certainly be taken away.

We managed not to go bankrupt about 2 years ago and it was a really proud moment, we scrimped and saved and made huge cutbacks to sort it out ourselves - we were just gettting back on track but unfortunately didn't see this one coming!

sassybooboos

you said you could afford to rent if the house was sold

why dont you suggest to your ex, that you move in there and rent out 1 or 2 rooms for the extra cash to cover mortgage until house sold. just place an ad in local paper and make sure you get a deposit off them.

[Deleted User]

Have you discussed your financial situation with your parents? Could they maybe help you out temporarily with any shortfall in the sale price of the house?
Regards,
C.R.

makingendsmeet_2

Go with what others have said.. If you go for repossession. Declare bankruptcy afterwards and whatever is left owing is written off.. Discharged after maximum of a year and start a new life.. Some peoples morals are too high.. At the end of the day your own happiness and sainity is worth alot more that the british economy. This is what I have personally decided to do.. As the weight of debt and the stress was basically too much for me to handle. Good luck with whatever route you decide.

silvercar

makingendsmeet wrote: »

Go with what others have said.. If you go for repossession. Declare bankruptcy afterwards and whatever is left owing is written off.. Discharged after maximum of a year and start a new life.. Some peoples morals are too high.. At the end of the day your own happiness and sainity is worth alot more that the british economy. This is what I have personally decided to do.. As the weight of debt and the stress was basically too much for me to handle. Good luck with whatever route you decide.

It really isn't that simple. Some lenders will never lend to anyone that has been repossessed. Getting a mortgage a decent rate would prove impossible for a few years, a lot of landlords won't consider bankrupts.

You could be discharged after a year, but you could also have a BRO (payment order) for 3 years after bankruptcy. Your credit record would be stuffed for 6 years. You would not be able to get any credit for a year. It could severely impact on your career.

Bankruptcy, may suit some people but it is not a decision to be taken lighlty and certianly not without professional advice.

Snooze

As someone who "walked away" from it all not that long ago I would highly recommend doing same. Ignore all the do-gooders with morals etc; at the end of the day all financial organisations are out to screw you for your money in whatever way they can and so you shouldn't feel bad even in the slightest about giving them a taste of their own medicine.

However, what people say about your credit file being in tatters for 6 years is true and it'll be nigh-on impossible to get any credit for a couple of years (unless you want to pay loan shark interest rates). That said, there are easy ways round this and I managed to get credit after just 3 months with a £1000 current account overdraft. How it's done is not something for me to publicly share on a site like this but I will tell you that if you can keep up all your repayments for 3 months and you would be prepared to move house after that period, you could walk away from all your debts (mortgage/loans/utility bills/council tax etc) and straight into a new life with a clean slate and basic bank account without ever having to worry about your past (and debts) catching up with you. All it will cost you is about £100 for a couple of documents and you calling yourself something else.

I know the above works and can be done because I've recently done it. If you want to know more 'cantdance', send me a PM.

Rob

Dick_here

Kez100 wrote: »

We sold for 4k less in the last crash. We had to save the 4k and fees to sell before we sold (as well as save for a new deposit because we were moving).

Lucky you. We bought a 1 bed flat for 55k in early 1990, sold it for 40k in late 1993 - well the offer was 42k but the surveyor knocked even that down, thanks a bunch mate.

Obviously it was an endowment mortgage, so after the 3+ years we still owed the 95% we borrowed.

How did we get out of it ? We saved like mad, had no social life, and had help from my mum, luckily. Still a complete waste of 4 years of our lives though, as well as almost 20k.

Still, I've still got the endowment to pay that money back in 6 years time though... :rolleyes: