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joella68
Junior Member
United Kingdom
280 Posts |
 Posted - 01 December 2008 : 20:17:05
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hi all,
we plan on going BR in january and we are letting the house go, as we are in serious negative equity we are moving into rented next week and dont want the responsibility of the house after that as we have cancelled builings and contents insurance on it now, so should we hand the keys back next week ????
jo
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 02 December 2008 : 09:14:29
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| bumping this one up as i am desperate for replies :-( |
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Jane.l
Average Member
511 Posts |
Posted - 02 December 2008 : 09:21:42
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I can only tell you what I did, I had advice from CAB, with hindsight it was not the best way to do things, we left our house, moved into rented and did not go bankrupt till 7 months later as CAB told us not to hand the keys back as it would stop us getting a council house! CAB also told us to wait until the house was sold so the shortfall could be realised but this was taking so long, NR did not repossess the house for 13 months and it has only just sold! (we have a council house now too)
I think now, that we should have handed the keys back ASAP, if I were you, I would ring your mortgage company and tell them of your plans and tell them to take possession of the house so they can get on with selling it, they will say you will be liable for any shortfall and mortgage arrears and sellling costs, but if you are going bankrupt, it will be covered.(no matter what they tell you) Watch out for the council tax, ring them and tell them that it is being repossessed so it can be awarded a Class C expemtion for 6 months, (they will want written proof of the possession date, you need to get this from your mortgage company ASAP, as you are still liable for the council tax) or you will have to pay half the council tax and the tax for your rented house too! |
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harbourmaster
Junior Member
346 Posts |
Posted - 02 December 2008 : 18:03:43
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Hi Joella68
Right then, here is my experience......
Went BR 10th Sept, told th el;ender that I wanted to send the keys back and they were very understanding. Told the OR that is what I intended to do and they sent a letter asking me to keep the keys until after the creditors meeting.
This happened on 20th Nov, by that time I had a court date for repo...
At the creditors meeting I explained th esituation to the OR who said that a creditor had been appointed and he would write to me, I should then send the keys to him. Went to court and explained this to the judge who said he could not advise me!!!
He granted a repo order so I sent the keys back recorded deliverey. I wrote to the OR and told them and they have phoned me this morning wanting to know where the keys are..... I told them I had sent them to the lender and they did not seem too happy about it..
If I were you I would send the keys back asap.. |
Edited by - harbourmaster on 02 December 2008 18:04:05 |
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 02 December 2008 : 18:09:16
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| oh god im very confused, as i will nt be going BR til january earliest, i just want the responsibility of this house to end, and i will be moving in a week too, just want to run away and hide im affraid the stress is at an all time high at the moment......i feel that im starting to loose it now !!! |
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harbourmaster
Junior Member
346 Posts |
Posted - 02 December 2008 : 18:24:30
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Dont panic. it will get better.
Knowing what I do now I would send the keys back ASAP. Then you will not have the responsibility or stress of the house.
Keep your chin up and keep asking questions, you are not alone. Have you phoned the helpline for advice? |
Edited by - harbourmaster on 02 December 2008 18:25:02 |
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Jane.l
Average Member
511 Posts |
Posted - 02 December 2008 : 18:28:30
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I know how stressful it all is, have been there and done that, it was the hardest part of it all, leaving the house, I really wish we had handed it back as soon as possible, your responsibility to the house will not end (regarding council tax, etc) until you give back possession to the mortgage company. In our case, initially we tried to sell the house but we had a secured loan, we found a cash buyer but at the exchange of contracts stage, Picture finance said no to the sale as they would not have been repaid all their money, we owed £36,000 to them and they would have been enough from the sale to pay NRock but only £16,000 to Picture, we wanted to put the shortfall into an IVA but they said no sale. Because we dithered and on advice from CAB we left the house for so long and now it has been sold for so little, we would have owed all the £36,000 to Picture, a £31,000 shortfall to NR and all the arrears, interest and selling fees!
I can only advise you hand the house back as soon as possible to avoid the situation we found ourselves in!
Just to add, we explained all this to our OR but as the house was in the process of being repossessed and there was neg equity, he said just to leave it, he was not interested in it |
Edited by - Jane.l on 02 December 2008 18:30:08 |
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joella68
Junior Member
United Kingdom
280 Posts |
Posted - 02 December 2008 : 18:57:09
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thanks guys, your words of encouragement are really what i need right now, i know you have all been/are going through it too, and i know you will understand this but we sometimes feel so alone, i am really looking forward to moving next week and shutting the door on the last 6 years of our lives, and i knowthat the future will be a better plce, just need to GET from A to B at the moment..........so much to sort out !!!!
thanks again x |
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Mr.E.Guest
Junior Member
United Kingdom
121 Posts |
Posted - 04 December 2008 : 14:12:01
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Hi,
We like you have left our house (last Thursday) and are now in rented - a much nicer house I have to say and some £1100 a month cheaper than our rip off mortgage - we will be in 2 months arrears as of mid Dec and the house had virtually nil equity.
I think we'll be posting the keys back ASAP to avoid council tax and any other liability.
Its our plan to go BR in the first 3 months of 2009. I guess the OR would have no interest in the property as it could raise no funds to pay off any creditors?
Good luck
Tim |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 04 December 2008 : 14:19:50
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Hi all,
Handing the keys back before BR is ok. Once you've moved into a rental, you can then go BR. As long as you detail all the secured lending in the unsecured section 4 of your SOA as well (and advise the OR in your interview that there has been a reposession), any shortfall will be captured and written off in your BR.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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should i hand they keys back ?
