Handing back the keys to mortgage company??

[Reviva UK]

If you rent through an agency they will almost always do a credit check which means that you are likely to be snookered.

Rent in advance of between 3 & 6 months usually always overcomes this. Obviously the only way to achieve this is by starting to save up for it over a period.

I have often found that when speaking to a landlord on a clients behalf there is a huge misunderstanding about B. Seems to me that in the event that one is B and has no other credit committments / credit cards chasing him then one is much more likely to be able to afford the rent withou a hitch.

You also have to work out where your own morals lie. (I am not recommending this) but if one has to find £485 x 2 for a couple B fees Plus 3 months rent upfront of £800 x 3 plus a month in advance the only place you can get this ( unless family or employers will help) is to not pay the creditors or even the mortgage company if the house is to be repossessed.

Wierd isn't it. Because the credit industry disadvantages you because of a previous situation - it is the banks that would ultimately pay if the above was undertaken. Chicken and egg.

As always I would recommend to get your "ducks in a row" before you go bankrupt rather than afterwards. Much less hassle and less stressful through the B period.

[chris.g]

We were actually advised by the CAB who contacted the OR helpline that missing the mortgage and secured loan to obtain the money for the bond and rent in advance wasn't a problem. I guess that the OR do understand that money is essential to be able to move on with life and that as long as it's used on essential things like a roof over your head it Ok. With letting agents remember that there will be an extra admin charge, I was quoted £130, just to get on their books and arrange the let. It all adds up and to be honest, you'll need the money more than them.
Another thing is that when we were living, and struggling, in the mortgaged house we weren't entitled to any benefits other than Working and Child tax. Now that we are renting, and around £200 a mth better off, we are entitled to housing benefit....Ironic to say the least........

[sjw]

how did you find out that you were entitled to housing benefit is your rent high in relation to your wages. also why are you entitled now in rented and not with mortgage-- hope you dont mind me asking.x

[chris.g]

The rent is £460 calender month, our mortgage was £480 and we did have a secured loan of around £250 a mth. We found out we should be entitled to HB on http://www.dwp.gov.uk/lifeevent/benefit ... enefit.asp

We are in the process of claiming it as my hubby has just gone from self-employed to employed, long story!!!
Benefits covering mortgages are very different and I'm not sure how they calculated. Hope this helps. x

[jo.a]

just want to ask .... in releated to this topic ...if you were made or declared bancrupt and you handed back the keys or house to your mortgage lender ,will you still be liable to pay for the negative equity or mortgage shortfalls like after the lender sold the house to ex .auction or private individual??? ...tnx .. just curious...

[Adam Davies]

Hi
No,this would form part of your bankruptcy.
Regards

[sjw]

is it best to hand the keys back before br or after ?

[jo.a]

hi ,thanks andy but i'm sorry if iask another question .....here it goes...what if your house was repossesd but was not bancrupt ... then you will be liable in case of negative equity or mortgage shortfall??? how are you going to pay them ???? is it monthly ....tnx

[MelanieGiles]

It does not really make any difference whether before or after to be honest.

If you are left with a shortfall, then you can make arrangements to pay it off on a monthly basis directly with the creditor.

[sjw]

so i would still have to make payment for the shortfall would it be included if i went br after not before

[jo.a]

i did ask sort of something like that , a while ago under this topic(page 1) ,that it will be included in the form of bancruptcy...so i guess there will be no shortfall...is this right .. ?? ???tnx

[chris.g]

the mortgage is a sort of secured loan, these will be included into the debt of your bankruptcy, therefore there will be no liabilty after bankruptcy.

[Adam Davies]

Jo.a
If your house is repossessed and there is a shortfall and you DO NOT declare bankruptcy then yes you would be liable for the shortfall.
If you declare bankruptcy before your house is repossesed then the equity in the property would pass to your OR,if there was no equity and the house was repossessed then the shortfall would become part of your bankruptcy.
If you declared bankruptcy after your house was repossessed then again any shortfall owing would form part of your bankruptcy.
Regards

[sjw]

thanks for clearing that up andydave.

[kenty]

Hi All,
Read all your notes on mortgage hand back very interesting, dont know if my story would help or not.

1.marriage break down 11 years ago
2.house handed back to mortgage company
3.mortgage was endowment with a forced indemnity policy as it was 95% not taken out by me but by mortage lender
4.mortgage company sold house for half street value
5.mortgage company claimed on indemnity policy for shortfall
6. 11 years later insurance company come after me for the value of what they paid out claiming 'subrogation'
7. forces me into IVA
8. insurance company then claims 11 years back interest on ammount(which doubles it)
9. solicitors and iva IP reluctant to take on subrogation claim

just be careful and cross all the t's and dot the i's