housing repossession

[desperateforaholiday]

Apologies if this is in the wrong place.

We arnt in arrears with our mortgage yet but its heading that way, we have been paying interest only the last few years and realistically we won't be able to afford to pay the full mortgage for at least another 3 years.
We are thinking about voluntary repossession, has anybody been down this route?
There are so many jobs needing to be done on the house which we can't afford and the stress is affecting my health and unfortunately its already in negative equity (we bought in 2006 then the housing crash happened and property prices haven't really recovered around here yet)
We have been offered a council house but I'm so unsure what to do for the best.
If we rent we could get housing benefit so that would take some of the financial strain off me whereas at the moment we can't get help with the mortgage as I work

Sorry its a bit long, my head is all over the place

Hey, firstly I hope you're ok under the circumstances? Secondly, I could've written this myself as we are also heading in the same direction, except we are now one month in arrears.

My hubby suffered a Stroke back in Sept 2012 and we thought after a month or two that he was ok, so I went back to work and he was looking after boys - long story short, his mental health has deteriorated due to brain damage from Stroke and I had no option but to stop work two months ago, as he does not get DLA, therefore no childcare costs from HMRC

Do you have the 'Mortgage Rescue' scheme where you live? They basically buy your house, but then you are a tenant as opposed to owner. We too bought ours in 2006, 100% mortgage & interest only (stupidly) so mortgage rescue would mean we'd still owe our lender a portion but they would have to accept what we can, i.e. £1 a week!

Also, I used to believe the CAB were a waste of time, but my hubby went to see them last week and this time we're getting some real good help.

I know we'll probably end up down the mortgage rescue route (which, as a tenant, you'd obviously get your repairs done, as opposed to having to pay yourself, which is a bonus) and I know it hurts, as you, probably like us, worked so hard to build your house up to what it is

Have you had help from your GP for your health? I've had to increase my Anxiety meds as I'm having a bad bout of it at the mo, but they do help (Citalopram 30mg).

Can I ask what your circumstances are, work wise? Cxx

P.S. My sister just basically 'gave up' her house/mortgage to reposession when she got into a bad state (Alcoholic & lost her children). I don't think she hears much from them anymore, and certainly doesn't pay anything back to the lender as yet.

I assume you would receive many 'red' and threatening letters initially, but this is where the CAB or a debt management agency would be a massive help.

Do you have children? X

I know someone who was in this situation & she is now very happy & secure in her council house. BUT, you will be liable for the shortfall & that will be stressful in itself.

Ive made an appointment with an estate agent this morning, I would rather sell it for as much as possible but that may not be an option.
I'm on beta blockers for anxiety atm but have got an appointment to see my gp.
We've got 3 children, luckily my eldest is quite excited about the move and none of them are aware of any financial pressures.
Just knowing I'm moving out has taken a huge weight of my mind.
I work so we aren't able to get any help with the mortgage interest but once we are renting we will get housing benefit, which seems daft to me

Have you spoken to your lender. If your house is in negative equity then it makes sense for you to work something out with them, otherwise they are not going to get their money back and you will still be left owing them money. If you owe £100K and they sell the house for £80K then you will still owe £20K plus fees. Unfortunately it doesn't work the other way around - if you owe £80K and they sell it for £90K they keep the £10K!

you really need to speak to your lender, they can be a lot more helpful than you think.

worldgonecrazy, what are you talking about?

If the mortgage company sells your house for more than you owe them (including any fees that have been charged to your account) then they DEFINITELY can't keep the excess! They have to sent the surplus back to you immediately! It's the law.

Where did you get the idea they can keep your money??

34DD that's not correct.

The 6 year rule relates to when a claim can be made, not the time in which you have to repay it. Its not a case that once 6 years is up, a lender can't still chase you for the shortfall.

I would speak to your lender. The only thing I would say is once you give voluntary possession, you give up any control over the price the house is sold for and the charges that are applied to the account. The resulting shortfall can therefore be much more than it would be if you sold the house yourself. Speak to the lender and tell them what the position is.

The 6 year rule is about unsecured debts.
If you owe a company money & they have not got a CCJ within 6 years of the date at which they have decided it's in default & they have had no acknowledgement from you of the debt (or you have had no contact from them which is extremely unlikely) it can become statute barred.
If you later acknowledge the debt & by later I mean at any time after the original default date, the six years in which they can get a CCJ or actively pursue you for the debt starts again.
They can still ask you for the money forever, but after that time they cannot get a CCJ & if they do, you can ask for it to be set aside.
Please be aware the company may not list the date of the default as being the date you first didn't make your payment on it's due date, it could be 30 days later, or even longer.

If they get a court order for you to pay the money, you'll owe it forever, CCJs don't run out.
However if a CCJ is unpursued for 6 years I believe the company has to apply for it again & they may not get it if they haven't been actively trying to claim it during that time.
Not too sure on that last one, I was told that by a trainee law student so I wouldn't rely on it.