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jl76

Voluntary Repossession

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Hi folks,

My wife and I are considering voluntary repossession.

Our situation is, we want to sell our house mainly due to being victims of crime/vandalism. Three times in the last year our house has been attacked, the window has been smashed twice and someone attempted to kick the door in. Thankfully it is a very strong door but they did still manage to cause some serious damage to it as they have damaged the lock. It is a struggle to get it open and closed. All this is happening at the rear of our property and is undoubtedly to do with the fact that our back fence and gate have came down partly due to wind, partly vandalism.

Our back garden is now easy access, hence the attack on the window and door. We are also not happy in the house in general and want to move, but mainly the reason is the vandalism and not feeling safe in our own home. The big problem is, the house needs a lot of work done on it before we can realistically sell it. A couple of years ago we had a leak in the bathroom which to cut a long story short cause the kitchen ceiling to fall down. We did get it plastered over but it's still an eyesore and needs to be completely redone. The kitchen itself is also in need of a complete overhaul, drawers and doors have fallen off the units.

Unfortunately we are not in a position financially to carry out any work. I'm not saying we're in massive debt or anything but we just manage to pay the bills and no more. We cannot get a loan due to a bad credit history. So because we are not in a position to do work on the house, we have tried the we buy your house type sites, but they are offering us less than is left on the mortgage. Going through the normal route/auction route is also not working because we need money for the home report which we do not have.

We are out of options. So I've been researching voluintary repossession. I feel it's the only option available unless we stay in the house unhappy on the brink of nervous breakdown until the mortgage is paid off or it's low enough for us to accept an offer from the we buy your house type sites. I welcome suggestions in doing the house up on the cheap and saving up etc etc but really I'm just looking for advice on voluntary repossession right now.

How do we go about it? is it best to just hand the keys back straight away and obviously accept that we know that we will still be liable for the mortgage/interest etc until it is sold, and also any shortfall once it is sold. And just move out straight away. Or am I better stopping paying the mortgage for three our four months so we can save for a deposit? And then do the voluntary repossession?

Or will that just cause us to struggle to get a place to let/rent because we would then have mortgage shortfalls?

We just don't really know where to start and the best way to go about it. Any advice would be appreciated.

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Hi jl76,

Sorry to here about your predicament,. My first question would be will it be cheaper renting a comparable house in the area that you would move to if repossessed? Will you benefit from posing the keys back?

Secondly your credit history is already ruined, so don't worry about hurting that but beware the mortgage company can chase you for the difference between what the house sells for and what your mortgage is there are fees added to this to.

If they have no chance of collecting it from you due to low income etc. then this may not be an issue.

If you give comprehensive information, it will maximise your chances of getting comprehensive and useful help.

Personal and income details

Net (i.e. after tax) Income self: nature of income e.g. self-employed/public servant etc

Income history: e.g. "I was made redundant in June 2012 and have not had any work since..."

Net income partner/spouse: nature of income

Income history:

number of children

Amount of child benefit received

Home loan

Lender:

Amount outstanding:

Value of home:

Interest rate: specify whether tracker or SVR or fixed rate

Monthly repayment

Amount in arrears

Other loans and creditors - delete those which don't apply to you

Overdraft

Credit Card

Pay Day Loan

Car loan e.g. 10,000 left at 7%

Family

Other savings and investments

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