The keys to our old house are going back on Monday - I've not spoken to the lender but I wondered if there are any do's or don't here? Or if I should call before I send them.
It is our intention to return the keys on a recorded delivery with a letter explaining that we can't afford the payments any longer and that at some point soon we'll be applying for BR.
As mentioned before there is no equity so the OR is not likely to be interested.
It would be realy helpful to know if there is a specific text to include in the letter or any pitfalls that are not so obvious...
it's pretty straight forward really. Clearly the lender will be aware of your intent from the receipt of the keys and the letter and I assume you have found accommodation.
Just one "do" - remember when you complete your statement of affairs to list the property details in section 4 (secured borrowings) which details the value and what is owed. And also enter the details in section 4 (unsecured) so that any shortfall between eventual sale price and your secured debt is captured in the bankruptcy.
And one "don't" - if your lender attempts to get you to sign a "deed of acknowledgement" or any anything else for that matter, don't. It could mean you will be liable for any shortfall even after bankruptcy if you sign.
Thanks for this - I'd read previously of mortgage providers asking you to sign for the debt on shaortfall no matter what and we are pre warned not to sign anything.
So the keys will be packed up and sent off with an explanation of our circumstances.
Returning house keys on Monday
Posted - 19 December 2008 : 11:18:10
