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Property/DIY

Join our Property forum for renovation, DIY, and house selling advice.

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Original poster

anyone ever had a house deliberately repo'd cos you didn't want to live there anymore?

30 replies

chuggabopps · 27/04/2010 18:33

I know it sounds mad, but my house has been up for sale for three years now, with no intrest.

It is a joint mortgage between me and my ex husband who moved out approx 6 weeks after moving in 4 years ago, (we are now divorced).

I have just come out of work, and want to move closer to my family and get a new job there. Its about 70 miles away.

I called the mortgage lender and so far, as the account has never been in arrears, they aren't willing to give me any advice other than "keep making the payments"- but really I won't be able to if being out of work carries on more than a fortnight or so..

please can anyone suggest how I can move out of here?

OP posts:

IngridFletcher · 27/04/2010 18:38

Lower the price?

Earlybird · 27/04/2010 18:39

I think you'd ruin your credit rating for a number of years, and could then be quite difficult to find another place to rent and/or buy.

What does your estate agent say about why the house hasn't sold? What comments have come from the viewings?

Have you dropped the price? Made improvements?

How much is the house worth? What is the mortgage? How much equity do you have in the house?

Would you ever consider renting the house out to cover mortgage payments? It is difficult to be a long distance landlord, but could enable you to move 'home' and cover expenses while you wait for the property market to improve so you can have another go at selling the house.

scurryfunge · 27/04/2010 18:39

You'd be making it difficlt to get a mortgage again or any loan if you default. If you are that desparate to move, why not rent it out while you find your new job elsewhere. If you were to make a large reduction on the asking price would you still cover the outstanding mortgage?

Fel1x · 27/04/2010 18:40

how about calling one of those 'we buy any house straight away' people that put flyers through doors instead? you'll get lower for it obviously but seems a much better option than throwing away your credit rating/ability to get another house elsewhere by getting re-possessed..

scurryfunge · 27/04/2010 18:40

x post

lal123 · 27/04/2010 18:41

Getting your house repossessed won't sort out your problems. Once repossessed the mortgage Co will probably sell at auction and might not get a price which covers what you owe on your mortgage - so you'll STILL owe them money.

Earlybird has asked some sensible questions - can you lower the price?

trixymalixy · 27/04/2010 18:43

Have you tried changing estate agent and lowering the price?

How much mortgage do you have on the house and what are you trying to sell it for?

You would ruin your credit rating for years to come if you deliberately didn't pay the mortgage.

Earlybird · 27/04/2010 18:44

lai123 has a good point - if the house is repossessed/sold at auction, or if you sell to one of those 'we buy any house folks', you could still be in trouble.

If the house is sold/auctioned for less than the mortgage, you are liable for the difference.

Original poster

chuggabopps · 27/04/2010 18:48

can the mortgage lender block a sale to those "home buyer companies" if there isn't any equity in the house?
There isn't any.

If I sell in the regular way-
I can't lower the asking price to below the mortgage settlement figure can I?

If I tried to rent it out- would I need my exdh agreement? I have a sneeking suspicion that he would not go for it- in order to p me off, and try to stop me moving.

I have no family or friends here- I only agreed to buy the house as a last ditch attempt to save the marriage- relationship wise I have no social life here at all, and want to move to be near people who give a damn about me.

I hear what you are saying about my credit rating, but isn't having human contact more important than that?

OP posts:

bran · 27/04/2010 18:49

You would be better off selling it yourself at auction rather than letting the bank do it, at least you can put a reserve price on it then. As others have pointed out the bank will chase you for any shortfall in the mortgage if they repossess and sell it themselves.

pinkmagic1 · 27/04/2010 18:53

I would say maybe renting the house out would be the best solution. Could you not use a rental agency if you are not going to be living locally? They will take a cut of course but as long as the rent is covering your mortgage payment you would be fine. Some companies will even pay if you don't have tenants.

Earlybird · 27/04/2010 18:54

OK - will ask again, why do you think the house hasn't sold? What is feedback from estate agent and people who have viewed?

The market seems to have improved a great deal, and properties are moving again.

Your best bet is to 'freshen up' the house and re-market so it will bring a good price. Maybe move to a new estate agent, take new pics, etc

Tell us what the strong points and weak points are, and we'll try to help you with advice.

expatinscotland · 27/04/2010 18:56

'I hear what you are saying about my credit rating, but isn't having human contact more important than that?'

Sometimes. But you're not considering moving to a remote island.

Ruining your credit in this way can have some far-reaching ramifications for many years.

I'd do what I could before going that route.

bran · 27/04/2010 18:58

People selling houses often come to MN for criticism helpful advice on how to make their house more saleable. Could you link to your house details and we can make suggestions?

If you don't have equity in the house then selling at auction probably isn't a great idea, and letting it be repossessed is a very bad idea indeed.

Original poster

chuggabopps · 27/04/2010 19:02

ok will answer EB- the estate agent is my exfil best mate. I was set up so that my ex family have some control over the sale.
moving to a new agent will cost me £ for a new HIP.
I don't think I have had viewings because I think ex family want to ensure that house only sells when they want it to- ie keeping me here.

OP posts:

Earlybird · 27/04/2010 19:04

So you've had no viewings for 3 years??

Have you met with EA to discuss?? If not, set a meeting straight away!

Is the house listed online for those who search that way?

Earlybird · 27/04/2010 19:06

Is your ex still listed on the mortgage? If so, a default could wreck his credit too, so is in his best interests to work with you on this.

FlyMeToDunoon · 27/04/2010 19:07

Some agents will pay for the HIP

pop1973 · 27/04/2010 19:09

I would pay and get a new HIP done. You can get really cheap good HIPs done online. I think we paid about £150 for one - can't remember the company though. Get a HIP online and put it on your credit card - so that you are covered for the HIP.

Once you have ordered the HIP and they are starting to process it, put it in writing to the old estate agents and tell them that you are cancelling the contract with them. You might have to give some notice - do this. Make sure you send the letter to agents via recorded delivery.

Get a new estate agent booked in to view the house and to get the details going - reduce the house sale if you can and want a quick sale.

Good Luck

bran · 27/04/2010 19:16

You say that you are divorced, what was the agreement wrt the house? Is you ex still a part owner?

Original poster

chuggabopps · 27/04/2010 19:17

and if I do get a new agent and new HIP-
can I lower the asking price to below the mort settlement fig? If I don't have an income as of yesterday I don't see how the bank persuing me for money is going to be possible for them (in the short term). I have started a benefit claim today.

exdh doesn't care about his credit rating or mine- he doesn't work any more, and rely's on fil to fund his life. It might be in his best interests to help me- but trying to even talk to him is apparently unreasonable of me.

OP posts:

Original poster

chuggabopps · 27/04/2010 19:28

yes bran- I was granted divorce from him in Sept 08. No financial agreement was part of the divorce- as neither of us had any £ left at that point.

I was advised that when the property sold he would be entitled to half the proceeds once the mortgage was paid off. From my experience to date- it looks like there will be a negative number. So I am guessing any shortfall in clearing the mortgage is down to me alone, as it won't be worth pursuing him if he never intends working for a living.

OP posts:

Earlybird · 27/04/2010 19:31

Why do you think the house hasn't sold, or had viewings? Is the price too high? is it in terrible condition/bad location, etc?

lal123 · 27/04/2010 19:35

As far as I know (and I'm no expert) you can sell house for whatever you want. However, how will you then pay back your lenders? He'll be jointly responsible for any shortfall

Original poster

chuggabopps · 27/04/2010 19:39

The asking price is calculated on the settlement figure plus little more (which would enable me to pay the agent with, and hopefully the conveyancing solicitor).

condition/ location- its a house you wouldn't be ashamed to raise a family in. Clean, new kitchen and bathroom on my moving in. Not had heavy wear as its only me living here. low crime area, close to schools and facilities. Village has plenty of youngish families with working parents.

Viewings- I suspect that potential buyers have been persuaded to view other houses if they weren't prepared to pay over the asking price for this one. Can't trust agent as he is too close to ex family.

OP posts:

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