quick volo repo question :)

MollyBear

We are giving up the house as voluntary repossession, but plan to move out before going BR, but after reading Scarlett's post (on my diary thread) saying she did the same but wished she'd stayed in until they repossessed it got me wondering...

If we stay in the house and go BR, and let the house go to volo repo, what happens about mortgage/rent?

We've just stopped paying the mortgage so we can save to move out, but I wondered if we were to stay put a bit longer would we have to pay the mortgage company / OR some 'rent' while we are here?

Thanks.

Molly
x

maxmycardagain

depends on your timescale for going BR, if you plan it for within the next 6 months then your probably as well to stop paying everyone, and hold for BR till you get notification of a CCJ from someone

Scarlett.1974

Hi MollyBear,

I'm glad you weren't offended by my post on your diary thread, I was a bit worried that I might have come across as a bit bossy

Basically, IF you were to stay put in your mortgaged house then it wouldn't be "voluntary" reposession. You would stop paying your mortgage / secured loans and let the mortgage company take you to court for formal reposession. You would then save the money you would have used for the mortgage payments towards rental costs.

This wouldn't be for the faint-hearted though. They WILL hassle you by phone and / or letter. I would strongly advise you change your telephone and mobile numbers if you were to do this and only give the numbers to friends and family.

HTH

Debt_Monkey_3

If you can stand it, go bankrupt now, and just stay in the house until they have an eviction order, and move out the day before the eviction is to be enforced. If you dont pay the mortgage, you will save a few months rent/deposit whilst they are taking court action and be living rent free. The shortfall/arrears of the mortgage will be a debt in the bankruptcy.

MollyBear

Thanks for answering, but what would I tell the OR as to what I was spending the money on instead as I'd be living effectively 'rent free'?

Merry_Gentry

The truth - that you are saving up the six months deposit requested for renting

MrsST

We have opted to move out sooner rather than later but that's because of our babies. I don't want the upheaval of having to move quickly with 2 x 2 year olds!

We've been lucky and got the money for advanced rent sorted already but we stopped paying the mortgage etc last month. I'd second the comment about it not being for the faint hearted though. In the last month, I'd guess that we have had around 30 calls a day to our 2 mobiles and the landline from both the mortgage company and first plus. Our answerphone that takes 32 calls/messages is usually full within 2 days.

peachyprice

MollyBear wrote: »

Thanks for answering, but what would I tell the OR as to what I was spending the money on instead as I'd be living effectively 'rent free'?

Hi Molly,

The OR will be fine if you say you're going to use your mortgage money for rent, afterall you are still using it for housing, just in a few months time, not right now. Our OR told us to stop paying if we intended to move out.

Although we've chickened out and are staying put for the full 12 months until the OR tells us we have to leave, then we'll stop paying the mortgage and s/loan to save for renting. Our mortgage and s/loan payments are the same as it's going to cost us to rent, so we might as well stay until we're discharged and have cleaned up our credit files

Sunk

When I was repossessed I stayed put until evicted.
I saved & saved, (the judge granted us another 4months as I was expecting at the time).
I was then homeless with 3children under 5, so then the council emergency housed us in a hostel.
Yes it can be stressful having young ones, my youngest was 5months at the time.
All the furniture was loaded in the van the night before, waited for the bailiffs the next morning to escort us from property, climbed in the van & that was our roof over our heads.
When I look back I don't know how we survived, but you do, now bankruptcy......I hope this will be the last of the troubles.
They are all memories good or bad.

eboy1975

Sorry to read the repo posts on here - have some repo questions, if anybody could answer them;

What are the consequences of voluntarily repossession as i'm seriously considering it.

How is the deficit repaid (am in neg equity and have a first plus secured on top of that) - not bothered about losing home and know that credit will be hard to come by (thank god!)

fixed rate goes up by 350 p/m in sept and am wondering whether to stop paying mtg and secured loan.

Also have two BTL's, one is up for sale and would be looking to equity of approx 10-15k to reduce repo debt balance - or could stop paying the mtg on this one as well (would save 1700 p/m in total).

Can NR and first plus force me into bankruptcy?

Sunk

I was chased for the shortfall from 1993 up until June this year.
I acknowledged the debt, so they have 12years to chase for it.
Each time I paid a token it started the 12year clock ticking.
I did not make myself 'intentionally homeless' though.