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lee.r
Junior Member
171 Posts |
 Posted - 23 August 2008 : 17:38:33
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I have a flat which I own with my ex gf. we spit up, and after a year ot letting the property out, the tenants moved out without letting us know. Becuase of the cost of this mortageg and the secured loan, we didnt bother paynig anything as we had our own rent to think about.
We have simply buried our head in the sand for the last 8 months and as such have defaulted on the mortgage. How would we go about voluntary surrender? Also what are the consequences? The property would fetch maybe £125,000 but the secured borrowing totals around £155,000. Would we automatically be made bankrupt? Could we negotiate payments to clear the outstanding balances or would there be some knid of extra legal action to force us to pay out vast sums?
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 23 August 2008 : 18:22:15
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Hi Lee R,
Welcome to the forum.
Your not alone and although I am unable to answer your question I would like to say be strong and dont give up.
We have all been in a rut and this site has helped us through, almost like an extended family.
One of the other experts will be along shortly and they will be able to guide you through.
Keep posting your questions and we will answer to the best of our knowledge.
Try looking through some of the old posts on here they are very helpfull.
Wont be long now.
Take care
JO
"There is light at the end of the tunnel, if you cant find it, get a brighter torch!" |
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John
New Member
United Kingdom
73 Posts |
Posted - 23 August 2008 : 18:26:55
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Hi lee
obviously the flat will be repossessed by the 1st charge lender if mortgage payments cannot be met.
The flat will likely be sold at auction, in today's market usually for around 70% of the market value but can also be less.
Once the shortfall to your 1st and 2nd charge lenders has been established, the shortfall becomes unsecured borrowing and you will be required to repay and presumably jointly and severally liable for the debt.
What action either lender will take in this scenario is their decision. If they so choose they are at liberty to commence bankruptcy proceedings against you both.
If they do so successfully, all other borrowings, joint and individual, will also be written off in bankruptcy.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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defaulted on the mortgage
