I went bankrupt at the beginning of May, and am due to move into new rented accomodation at the end of June. I have heard nothing yet from my mortgage provider regarding the house, and am wondering whether it would be best to just send them back the keys when I move into my flat, or wait for them to go through the courts for repossession?
I was half expecting to have heard from them by now, and from that to have worked out the best option, but I'm still a bit in the dark about it!
You will prob get better advice than I. There are other posts on here somwhere and an example letter. I think Skippy went though this but I am in the same position and moving next week.I am sending the keys back, recorded, with a covering letter . Do NOT sign anything that they send you re neg equity as you dont want to be lumbered with this
If you want a clean break then send the keys back recorded delivery so you can verify who/when they were received by the mortgage company. They will still send you a voluntary repossession letter and ask you to sign it. There is no problem signing it but you need to cross out the section that mentions you will be liable for any shortfall. If you don't cross this out you will be liable for the shortfall even though it has been included in the BR.
From what other people have said the mortgage company will hound you until they have received the signed voluntary repossession letter from you. If they don't receive this it will cost them a lot of money to go through the courts to repossess the property even if you have posted the keys to them.
I am not a legal expert but other people on another BR board have done this and never been chased for the shortfall.
It really depends on whether you are happy for the mortgage company to carry on chasing you or not. Most people who declare BR are hassled by all of their creditors so want it all to stop once they are BR. They just want to give up the house and start to enjoy life again.
The mortgage company will continue to hound you until you sign the form so the options are:
- Cross out the shortfall section and return the form and keys to the mortgage company - Speak to the mortgage company and tell them you won't sign the form unless the shortfall paragraph is removed. Based on other people's attempts at this the mortgage company normally don't budge and continue to call you. - Ignore the mortgage company's calls and force them to go to court to repossess the property.
Repossession query
Posted - 30 May 2009 : 01:17:27
