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How would I hand back the keys to our mortgaged provider??? It's with the Halifax and they just keep telling me that it's not at repossession stage, we have missed 2 payments but have declared bankruptcy. They advised us to contact their legal dept on monday and the OR but was just wondering if anyone had any ideas or had the same trouble......

Hi
Generally three missed payments and the mortgage provider will start repossession proceedings.
Do you have rental property or somewhere else to live sorted out yet ?
Regards

Yes we moved out before Christmas but hung onto the keys incase it complicated things with our bankruptcy. The OR told us to hand them back but Halifax don't seem to want them.

You can surrender your property on a voluntary basis to a secured lender, thus giving them a head start on taking control of the property and potentially marketing and selling it from an earlier time in order to reduce any potential loss.

That's what I told them but they didn't know how to carry out the procedure. I guess in our area people don't hand back their property very often....

Hi there
Easiest way is to write a brief letter ( and I mean brief!!! )
stating that you were made B on X date and your B number is 1234 of 2007 0r 8 i XXX County Court.

I am writing to voluntarily surrender the above property and have enclosed all of the keys for your convenience.

Should you have any queries please do nothesitate to contact us or the official receiver - Mr X & address.

thank you


brief is always best

Thanks Paul, I will do this an hand them in tomorrow.

Sorry
i more thing

prepare a receipt so you can prove you have given them the envelope.
i.e.

Without Predujice
I can confirm receipt of your letter and keys to property XXX.
signed
position

Good luck.

Interestingly many of my clients have fallen into the "Second Charge Trap" and this has caused them much grief. If only they had got professional help BEFORE the second charge they would probably be in a better position.

Typically they are with a high street mortgage company on a reasonable fixed rate of 5.25%. they then borrow a further £50k form a national TV advertised company - nearer the 10 - 15% apr because of current credit score. Their credit rate continues to drop because the 50K does't solve the problem, then the nightmare happens - The fixed rate ends and they move to a much higher rate ( called the standard variable rate ) and can often be 2 - 3.5% more. This is a 50% rise in mortgager payments.

The result is that they are now almost always in negative equity, and are paying £300 - 500 pm more than renting a nicer house round the corner. PLUS they still have £x unsecured and do't know what to do.

Well done to you in realising that the home is where you live NOT what you struggle to pay for over 30 years. I have seen so many people that almost loose the family because of the emotional desire to keep the house ( NOT HOME).

My view is that it is always better to draw a line, and start a fresh - a lot less stressful and often the fear of embarrasement with family & friends is quickly overcome because you have a nicer home and seem a lot less stressed,

Don't forget the goverment say that 30% of all homes are not coping financially and struggle to make their monthly payments, so it is likely that some of your friends and family are in the same boat but haven't taken a positive step to move on yet.

Paul

I couldn't agree with you more about your comments relating to second charges. I had clients the other day with a £30k main mortgage at 5.5% and a £100k secured loan at 15% which was used to consolidate some debts.

It is time that this side of the financial world had the same regulation as main stream mortgages, and that celebrities stopped plugging them on the TV! When I see that awful advert, where the father trips over the scooter, it makes my blood boil.

I have also noticed that people are fearful of paying a redemption penalty ( of say £3000 ) on their mortgage or associated costs of solicitors & valuation fees so instead opt for a hugely expensive second charge.

I can picture the time when we begin the countdown to a more savvy financial consumer is underway and there are oceans of choice - I can't wait

Thanks again, Paul. I do admit, our 'rented' home is much more relaxed and stress free. I was in the mind-set of the most important thing was to own our home and by hook or by crook we were going to achieve it. Now I realise it's not the most important thing and that being in a position to manage your finances comfortably and be able to relax and enjoy life is far more important.

Remembering that a house and a home can be two entirely different things. A house can be an absolute burden if you cannot afford to pay for it, a millstone around your neck, and a constant worry. Whereas a home can be a tent in the desert so long as you have your family and friends around you.

I always feel that we British are far too obsessed with property ownership - Englishmen and castles and all that - whereas when you compare ourselves with our European cousins, there is far more rented property in France and Germany, perhaps where there is a better standard of living.

hi, did you find it diffficult to get rented accom with bad credity - mortgage arrears also bankruptcy as in similar position ( or will be) but worried about getting a rented place.

What we did was rented privately, before our bankruptcy and direct through the landlord, he'd advertised the house in the local paper. We explained our situation and that we were having to declare ourselves bankrupt and luckily he was fine about it. I had heard that some letting agents will ask for 6 months rent in advance from bankrupts which is ridiculous. I guess we were really lucky as he didn't mind us having pets either. We moved in November and have only just declared. Good luck

oh right thanks so there wouldn't be much of a chance using letting agents then -