I've handed my house back to the mortgage company,

[rince_w]

I've handed my house back to the mortgage company, but still have secured loan against it, and theres looking like they'll be a shortfall

where do i go from here??

[ivas4us]

welcome to the forum. it will depend on your circumstances as to what route is best but there may be 3 options available - bankruptcy, IVA or DRO. You would probably be best to look at www.iva.com to get some professional advice from an IP. there are reviews there available and I would suggest trying 2 or 3 to see who feels the most comfortable for you.

[Adam Davies]

Hi
How much unsecured debt and how many creditors do you have in addition to the securedloan/mortgage shortfall ? How much do you think the shortfall will be worse case scenario ?
Regards

[MelanieGiles]

Are you in any form of debt solution right now, or just considering your options? The shortfall once your house has been sold by the mortgagee just becomes another unsecured creditor in whatever solution you choose or have chosen.

[rince_w]

i have credit cards, and a personal loan as well
5 or 6 creditors or so

currently its up for sale 5k less than what i owe on the mortgage

i'm not in any other sort of debt solution at the mo

just need to sort myself out

[MelanieGiles]

I would have a chat with an insolvency practitioner who can give you good advice about all debt solutions. This will cost nothing and enable you to plan for the future.

[Michael Peoples]

After the property is sold there will be the whole of the secured loan as a shortfall inaddition to the shortfall[plus costs] to the mortgage company. Even though you are currently not in any type of debt mangement it is important to take advice at this time as the property shortfalls will come back to haunt you after the sale.

[Dougie]

Surely if you have a secured loan where they have a second charge on the property you won't be able to sell it, as they won't release their interest and thus title can't pass to a new owner??

[Michael Peoples]

Yes Dougie but the property has already gone back to the first charge holder who can sell it and pass anything left onto the second charge holder. The first charge holder does not need the permission of the second charge holder to sell a repossessed property. The second charge holder will be unsecured for any shortfall.

[MelanieGiles]

I think second charge holders are getting more realistic about agreeing to property sales, especially in the current climate - and as Michael says, the first charge holder will take control in any case.